Developing High Affect-Based Trust in U.S.-China Business Negotiations

Abstract

Through an empirical study of 60 Chinese executives in the U.S. and Hong Kong, Chinese executives hired by American corporations are found to develop high affect-based trust with their Chinese counterparts through appropriate monitoring processes and four key tactics according to their shared interdependent self-concepts. They seldom transfer their affect-based trust to the relationships between American and Chinese negotiators unless they perceive themselves as having more power over the entire negotiation process and more accountability for the implementation of the project after the negotiation. These executives prefer to compartmentalize themselves and develop high cognitive-based trust with their American teammates. American corporations must understand the importance of establishing affect-based trust through appropriate monitoring processes according to the interdependent self-concepts. They must expect to change their routine American practices that are grounded in independent self-concepts if they want to see higher levels of success in U.S.-China business negotiations.