Understanding Initiation Behavior in Chinese Negotiations: An Examination of Distinctions across Three Regional Subcultures

Abstract

AbstractWhile many individuals speak of China as a single trading partner, in reality Greater China consists of at least three regional subcultures ‐ the People’s Republic of China, Hong Kong, and Taiwan. These regions differ in terms of their historical development, values, and traditions, which have implications for what to expect in negotiations. This article examines the cultural differences found in these three regions of Greater China, with particular attention to an often overlooked yet critical stage of the negotiation process ‐ the initiation stage. Using data from the GLOBE Study on cultural practices and values, propensity to initiate a negotiation (engage a counterpart, make a request or demand, and optimize that request) is estimated for each regional subculture. The implications of these findings for practitioners and future research are discussed.