Individual Perception, Bargaining Behavior, and Negotiation Outcomes: A Comparison across Two Countries

Abstract

This study explores a model of the relationships between negotiators' perceptions of the negotiation situation, their behavior, and negotiation outcomes, using data collected in Canada and China. The results show that while Chinese negotiators are more concerned with maintaining good relations in the negotiation process, Canadian negotiators put more weight on their individual economic gains from negotiation. This result suggests a difference in a key work-related value: individualism/collectivism. Furthermore, Canadian negotiators' perceptions have less influence on their behavior than those of their Chinese counterparts. This could be explained by the fact that in a high-context culture like China, people's perceptions of the environment play an important role in how they behave.