Abstract
This article is a partial report of comprehensive research designed to explore whether cultural differences can explain the results of the business negotiations between Indian and Israeli private sector representatives. 205 active businessmen from both countries were interviewed regarding their mutual experiences. Cultural differences were found to be significant in various aspects of strategy adoption and outcomes, contributing to excessive stalemates in negotiations. The data offer insights into the procedures occurring in the ‘black box’ of cross-cultural negotiations. Support was found for the transactional normative model, which recognises sequences of changes in distributive and integrative strategies over time. Findings also support the theory of reciprocity where negotiators’ behaviour was found to be influenced by the perceived behaviour of their partners. The results provide insights that may be used by international business policy makers to improve training and enhance the effectiveness of business negotiation.
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