When East meets West at the bargaining table: adaptation, behavior and outcomes in intra- and intercultural German–Chinese business negotiations

Abstract

This study analyzes how negotiators from Germany and China deal with a foreign opponent compared to a compatriot. Hypotheses about negotiation behavior and behavioral adaptation are derived from differences in cooperative and competitive motivational orientation represented by the cultural values of assertiveness and humane orientation. Additionally, negotiation outcomes in this cultural setting are assessed in order to shed light on this economically very important, but currently much under researched bilateral trade relationship. To this end, 45 German, 41 Chinese, 42 German–Chinese, and 45 Chinese–German negotiation dyads had to solve a complex, integrative bargaining task through internet chats. Negotiation behavior was content-coded and subjected to logistic regression analysis. In the intracultural negotiations, German negotiators used more integrative and less distributive tactics compared to Chinese negotiators. When changing the setting from intra- to intercultural, the Chinese negotiators did not change behavior, but the German negotiators increased their level of distributive behavior. Since they did not significantly change their level of integrative behavior, we found (partial) behavioral adaptation of the German negotiators. As a result, the joint gains achieved by intercultural dyads are lower than the joint gains of German intracultural dyads, but higher than those of Chinese intracultural dyads.