Cultural variations in negotiations: A study of Indians and Americans

Abstract

We studied the difference in negotiating behaviour between participants of Indian andAmerican origin in an online research survey. We predicted that Indians would favour longterm relationships rather than shorter term results and that Indians would haggle more thanAmericans in a bargaining situation.. We further predicted that Americans would be moreconfrontational and would not let their personal relationship interfere with the negotiationoutcome. We also explored the cultural variations in negotiation patterns depending upon thelevel of power. The results of our survey supported the hypothesis that Indians andAmericans vary in negotiation patterns involving power differentials. This finding maps on toHofstede’s cross-cultural dimension of power distance and suggest that negotiating partiesmust be sensitive to the cultural variations in relating to authority