One common truism in the world of business is that mergers often fail. The task of negotiating a company merger with two other multinational companies is thus a daunting one. There are many reasons which cause mergers to fail, but one of the most common is that of miscommunication between the multiple entities. The fact that one of the nations is from Germany and the other is Japanese may further complicate matters, given that Japan is a traditionally high-context culture, where the content of what one says is less important than the manner and to whom one says it; speech also tends to be much more indirect. In contrast, Germany, similar to that of the United States, tends to be a very low-context culture where the explicit meaning of what a speaker conveys is all-important.Issues Negotiating in a Diverse Cultural Environment
What is perceived as an obstacle or a difficulty by an individual from one cultural context may not be perceived as such by someone from a different context. From the perspective of an American from a low-context culture, the ability to negotiate based upon explicit meanings is often seen as a great benefit. In contrast, Japanese negotiators have often complained that Americans are difficult to deal with in negotiating situations because of the heterogeneous nature of the culture, which can make it difficult to read negotiator’s signals (LeBaron, 2003). This suggests that Japanese negotiators were always looking for subtle, subtextual messages as well as reflects a different demographic composition between the two nations. Even when negotiating with Germany, excessive bluntness that may be seen as admirable and trustworthy in one culture may be viewed with suspicion in another.
Culture can even affect the manner in which the negotiation is carried out. For example, societies such as Japan are often referred to as polychronic cultures, where start and end times of meetings are fluidly observed, and there is often a great deal of importance placed upon the socializing aspects of meetings which take place after hours (LeBaron, 2003). Disagreements are not verbalized openly. In fact, it might be considered impolite to bring up challenges directly, which can frustrate the opposite negotiating party, who feels as though they are being forced to read minds (LeBaron, 2003). There is also often a clear hierarchy in terms of who can give definitive answers, and even if a member of the party is enthusiastic, he or she may not actually be representative of the final decision-maker.
In contrast, individuals from monochronic cultures like the United States and Germany prefer to begin and end meetings on time. Characteristically, they prefer formally-scheduled breaks versus after-hours socializing and wish...
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