Some reflections of Vietnamese and American Cultural values on Vietnamese-American Business Negotiation

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Luận văn tiếng Anh: Some reflections of Vietnamese and American Cultural values on Vietnamese-American Business Negotiation = Các giá trị văn hóa Việt nam, Hoa kỳ phản ánh trong đàm phán thương mại Việt-Mỹ. M.A Thesis Linguistics: 60 22 15
Nhà xuất bản: ĐHNN
Ngày: 2011
Chủ đề: Tiếng Anh
Văn hóa
Đàm phán
Việt Nam
Hoa Kỳ
Miêu tả: 45 p. + CD-ROM
M.A Thesis English Linguistics -- University of Languages and International Studies. Vietnam National University, Hanoi, 2011
In the trend of globalization of the business world, the area of cross cultural business negotiation has become more and more popular. That is because cultural differences usually influence the negotiation process significantly and unexpectedly. Understanding and recognizing cultural variables of the counterparts from another culture will be most important in getting successful outcomes of a negotiation. This study aims to examine the ways of thinking and behaviors of Vietnamese and American business people in business negotiation to seek out the influence of their cultural values and potential problems in Vietnamese – American business negotiation. Furthermore, some solutions will be suggested to improve the negotiating process between business people from the two countries
TABLE OF CONTENTS
Declaration …………………………………………………………………………... i
Acknowledgement …………………………………………………………………... ii
Abstract ……………………………………………………………………………... iii
Table of contents…………………………………………………………………….. iv
CHAPTER 1: INTRODUCTION
1. Rationale ………………………………………………………………………….. 1
2. Aims of the study………………………………………………………...……….. 1
3. Scope of the study…………………………………………………………………. 2
4. Methods of the study ……………………………………………………………… 2
5. Significance of the study …………………………………………………………. 2
6. Organization of the study………………………………………………………… 2
CHAPTER 2: THEORETICAL BACKGROUND
1. Culture ………………………… ..................…………………………………….. 4
1.1. What is culture? .............................................................. ……………………… 4
1.2. Components of culture ................................................................... …………… 4
1.3. Cultural values.....................……………………………………………………. 6
1.3.1. Vietnamese cultural values ………………………………………….............. 6
1.3. 1.1. Collectivism ………………………………………...................................... 7
1.3.1.2. Harmony ...........................................……………………………………….. 8
1.3.1.3. Respect………………………………………………………………………. 8
1.3.1.4. Duty and honor………………………………………………………………. 9
1.3.2. American cultural values……………………………………………………… 9
1.3.2.1. Individualism………………………………………………………………… 10
1.3.2.2. Self-reliance…………………………………………………………………... 10
1.3.2.3. Equality………………………………………………………………………. 11
1.3.2.4. Competition ………………………………………………………………….. 12
1.3.2.5. Materialism and hard work…………………………………………………. 12
2. Communication…………………………………………………………………….. 13
2.1. What is communication?........................................................................................ 13
2.2. Cross – cultural communication………………………………………………… 13
2.3. Potential problems in cross – cultural communication ……………………….. 14
3. Negotiation ………………………………………………………………………… 14
3.1. What is negotiation?............................................................................................... 14
3.2. Negotiation as a form of communication……………………………………….. 15
3.3. Elements of negotiation………………………………………………………….. 17
3.4. Business negotiation……………………………………………………………… 18
3.5. Characteristics of business negotiation………………………………………… 18v
3.6. Cross - cultural business negotiation…………………………………………… 19
3.7. Potential problems in cross cultural business negotiation……………………. 21
CHAPTER 3: METHODOLOGY
1. Research method…………………………………………………………………… 22
2. Data collection instrument ………………………………………………………. 22
3. Data collection procedure…………………………………………………………. 23
4. Informants…………………………………………………………………………. 23
CHAPTER 4: FINDINGS AND DISCUSSION
1. Presentation and analysis of the data…………………………………………….. 25
1.1. The negotiators – the actors of a negotiation…………………………………… 25
1.2. The size of negotiation team…………………………………………………….. 26
1.3. Negotiation approach…………………………………………………………….. 28
1.4. Negotiating style ………………………………………………………………… 28
1.5. Risk taking………………………………………………………………………. 29
1.6. Goal of negotiating ……………………………………………………………….. 29
1.7. The role of attorneys in the negotiation…………………………………………. 30
1.8. Conflict management…………………………………………………………….. 30
1.9. Decision-making ………………………………………………………………… 31
1.10. Activities accompanying the negotiation ………………………………………. 33
2. Similarities and differences between Vietnamese and American in business
negotiation and the cultural explanation….………………………………………… 34
2.1. Similarities……………………………………………………………………….. 34
2.2. Differences………………………………………………………………………. 36
3. Potential problems in Vietnamese – American business negotiation and some
suggested solutions……………………………………………………………………
39
3.1. Potential problems………………………………………………………………… 39
3.2. Some suggested solutions……………………………………………………….. 39
CHAPTER 5: CONCLUSIONS 41
1. Conclusion………………………………………………………………………….. 41
2. Limitation of the study…………………………………………………………….. 42
3. Suggestions for further study……………………………………………………… 42
REFERENCES……………………………………………………………………….. 43
APPENDIX 1 I
APPENDIX 2
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CHAPTER 1: INTRODUCTION
1. Rationale of the study
During the last few decades, the increasing globalization of the economy has
resulted in the tremendous growth in international market. As international business
opportunities open, negotiations also increase. There have been so many studies about
negotiation skills across cultures, but they only focused mainly on developed countries.
Just few studies have been conducted in the Vietnamese market.
Located in the Southeast Asian region, the developing country Vietnam attracts a
lot of foreign direct investments, especially after becoming a member of the World Trade
Organization (WTO) in 2007. Among various foreign investors are those who come from
the United States. The U.S.-Vietnam Trade Agreement signed in July 2000 has created
opportunities for US investors in Vietnam and also given Vietnamese businesses access to
the U.S. market on the same terms as other nations. With the increasing development in US
– Vietnam trade relation, the negotiations between Vietnamese and U.S. partners grow to
be a norm. This shows the importance of understanding how differences in cultures, sexes,
experience, and characteristics could affect Vietnamese – American business negotiation.
However, to cover all those differences in a study of this size seems to be overloaded. This
study, therefore, attempts to explore only one side of cultural differences - Vietnamese and
American cultural values and to find out how they influence on Vietnamese – American
business negotiation.
2. Aims of the study
This study aims to investigate the potential problems in Vietnamese – American
business negotiation and the Vietnamese and American cultural values that cause those
problems. To be more specific, the objectives of the study are:
- to find out typical Vietnamese and American cultural values.
- to understand the nature of a cross cultural business negotiation.
- to examine the potential problems in Vietnamese – American business negotiation.
- to analyze how cultural values influence the negotiation process and outcomes.
These aims are formulated into 3 following research questions:2
1) What are the similarities and differences between Vietnamese and
American business negotiation?
2) How are Vietnamese and American cultural values reflected in Vietnamese
– American business negotiation?
3) What are potential problems in Vietnamese – American business
negotiation?
3. Scope of the study
Dealing with all cultural factors affecting negotiation is too broad for a study of this
type. Therefore, the focus of this study is to investigate only some typical cultural values of
the two target countries: Vietnam and the United States; and to find out how they are
reflected in Vietnamese-American business negotiation.
4. Methods of the study
The study used mixed methods to find answers to the three research questions. The
instrument for data collection in this study was the questionnaire. The data collected from
questionnaires were analyzed quantitatively and qualitatively for descriptive statistics.
Considerations and comments will be made inductively.
5. Significance of the study
This study points out the cultural values of the two countries that have influence on
Vietnamese – American business negotiation and tries to find out some potential problems
in that case. The results of the study will be of some contribution to the literature of
international business negotiation from cross-cultural perspective. Moreover, the findings
and comments of the study are believed to be useful for raising the cultural awareness of
Vietnamese and American businessmen when they meet up in a negotiation so that they
can achieve success when they do business in the United States or Vietnam.
6. Organization of the study:
This minor thesis consists of 5 chapters:
The first chapter is the introduction which reveals the rationale, significance, aims,
methods, scope and organization of the study.
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Chapter 2 is the theoretical background centering on some typical cultural values
of Vietnam and the United States, the cross cultural business negotiation with potential
problems.
Chapter 3 discusses the methodology of the study.
Chapter 4 deals with findings and discussion, and implications of the study given
by the findings.
The last chapter is the conclusion, limitations and suggestions for further study.
CHAPTER 2: THEORETICAL BACKGROUND
1. Culture4
1.1. What is culture?
Culture is an abstract term which is very hard to define. The meaning of the word
―culture‖ causes a lot of debates by anthropologists as well as many other social scientists.
There are up to now hundreds of definitions of ‗culture‘ and different people define it in
dissimilar ways. But the most general understanding of culture is that it is learnt, not
inherent.
Culture may be understood in the sense of ―high culture‖ as the appreciation of art,
music, literature and so on, or ―low culture‖ as normal life with daily activities of human
beings. According to UNESCO, culture is an "aggregate of distinctive, spiritual, material,
intellectual, and emotional traits, which characterizes a society or a social group. It
includes, alongside with arts and literature, ways of life, basic human rights, systems of
values, customs and traditions, and faiths". This is the definition that helps to articulate the
concept of cultural dimension of development. Geert Hofstede (1984:22) describes culture
as the ―collective programming of the mind which distinguishes the members of one group
or category of people from another.‖ Therefore, the behavior of a person can only be
understood from the knowledge of the culture that he belongs to.
Due to the fact that all negotiations take place in a socio-cultural environment, the
culture of such a place will greatly influence the way the negotiators act, behave or
perceive communications, both verbal and non verbal during negotiations. Therefore, the
definition ―Culture is a shared background (for example, national, ethnic, religious)
resulting from a common language and communication style, customs, beliefs, attitudes,
and values‖ by Levine and Adelman (1993:xvi) is the most suitable one for the scope of
this study.
1.2. Components of culture
Being passed down from generation to generation, the components of culture are
extremely important to all aspects of a society. They are necessary for members of society
to competently participate in social life and interactions. The actions of people can provide
information on the culture they come from. Sometimes, being submerged into another
culture can lead to culture shock. According to Stephen Moore (1985:4), cultures are
composed of six elements: beliefs, values, norms, roles, role conflict and status.
- Beliefs: these are general, vague opinions held about the world and about the
nature of society. They vary by society and sometimes by subcultures, e.g. the ancient
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people were encouraged to think that the Earth was the centre of the universe and all other
planets moved around us.
- Values: these are vague beliefs about what is right and correct in the world. They
imply that there are certain appropriate forms of action which ought to be taken, e.g. life is
precious therefore, it is wrong to kill anybody.
- Norms: these are socially expected patterns of behavior. (Actions that are
regarded as normal) A norm of the British society is to say ―Hello!‖ on meeting someone,
or to stand in a queue without trying to push in front.
- Roles: Social roles are patterns of behavior expected of certain people according
to the occupation or position they hold in society.
- Role conflict: There are innumerable social roles – father, mother, child,
shopkeeper etc. All of us occupy a number of roles, which are generally complementary,
but sometimes they may conflict.
- Status: This refers to the position of a person or social role in society according to
the amount of prestige received from others. In different societies/cultures, status varies.
Myron W. Lustig and Jolene Koeste (2006, 86) have the opinion that culture
involves four components: beliefs, values, norms and social practices.
- Beliefs: A belief is an idea that people assume to be true about the world. Beliefs,
therefore, are a set of learned interpretations that form the basis for cultural members to
decide what is and what is not logical and correct.
- Values: Values involve what a culture regards as good or bad, right or wrong, fair
or unfair, just or unjust, beautiful or ugly, clean or dirty, valuable or worthless, appropriate
or inappropriate, and kind of cruel. Because values are the desired characteristics or goals
of a culture, a culture‘s values do not necessary describe its actual behaviors and
characteristics.
- Norms: Norms are the socially shared expectations of appropriate behaviors.
When a person‘s behaviors violate the culture‘s norms, social sanctions are usually
imposed. Like values, norms can vary within a culture in terms of their importance and
intensity. Unlike values, however, norms may change over a period of time, whereas
beliefs and values tend to be much more enduring.6
- Social practices: Social practices are the predictable behaviors‘ patterns that
members of a culture typically follow. Thus, social practices are the outward
manifestations of beliefs, values and norms.
1.3. Cultural values
In the scope of this study, only the component ‗values‘ is focused among the
components of culture mentioned above. In the view of philosophers, value is a very
common concept. It relates to economy, politics, morality, art, religion, science, culture
and even the common connotation and essence of gains and losses, kindness and evil,
beauty and ugliness, pros and cons in every field of daily life.
Values are related to the norms of a culture, but they are more global and abstract
than norms. Norms are rules for behavior in specific situations, while values identify what
should be judged as good or evil. Different cultures reflect different values. At the simplest
level, cultural values are commonly shared concepts about what is right or wrong, possible
or impossible, true or false and so on. In other words, they may be seen as the commonly
held standards of what is acceptable or unacceptable, important or unimportant, right or
wrong, workable or unworkable, etc., in a community or society. Values determine thought
patterns, standards of morality and behaviors. Each culture has its own value system which
may be very different from that of another culture.
1.3.1. Vietnamese cultural values
Known as a once war-torn nation, Vietnam has a complex culture influenced by
many foreign invaders over the centuries. However, it can be said on the positive side that,
this history of war has contributed to shape the Vietnamese character. Long years of
fighting against foreign intruders have served to unify the country, fostering a sense of
nationalism and pride.
In the early history, the country was dominated by Chinese for almost 1000 years.
Consequently, the Viet people and culture were subject to constant Chinese influence and
significant attempts of assimilation. Therefore, Vietnamese culture is said to have
foundations in Confucian and Buddhist philosophies transmitted mainly from Chinese
source. In addition, it was traditionally the agricultural society that formed the Vietnamese
character, which was characterized by the village community with many of its primitive
vestiges retained. The thoughts of farmers absorbed deeply into the Vietnamese
agricultural society and their positive aspects made up the typical features of the traditional
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Vietnamese. The basic administrative and social unit of the society was the village with
affairs run by notables and the state rarely interfered. The village culture highly valued
emotional ties and attachment to relatives and community as well as Giúp extended to each
other especially to the less fortunate members. In this way, it fostered the sense of
collectivism.
Despite all the complexity of the structure of the Vietnamese cultural system as
such, the core distinctive values of Vietnamese culture are still recognizable.
1.3.1.1. Collectivism
This cultural value means that the interests of the community or the group are
considered to be more important than the interest of the individual. Asian cultures place a
higher value on the group and tend to see individuals in terms of their membership in and
obligation to groups. The Vietnamese are no exception. Being a collectivist society, the
needs of the group in Vietnam are placed before the needs of the individuals. The concerns
for family and community will almost always come before business or individual needs.
This is explained by Ellis C. (1996) in her book Culture shock! Vietnam: A strong sense of
community felt by all Vietnamese is an intrinsic part of their make-up and ethnographers
believe it stems from their long reliance on wet rice agriculture. The people had to
cooperate and work together on intra-village irrigation systems to get the benefits of a
good harvest. This created a sense of unity…
An expression of this value is the Vietnamese people‘s allegiance to their family.
There is a fact that family is the cornerstone of the Vietnamese society. Vietnamese people
cherish the complete and stable family, maintain harmony and avoid confrontations. They
usually live in extended families which may include three (or more) generations:
grandparents, parents and children. By virtue of the principle of collective and mutual
responsibility, each individual strives to be the pride of his family. Children are taught
from early childhood to obey their parents and readily forget himself for the sake of his
family‘s welfare and harmony. The elder generation always tells the younger generation
what they should or should not do. Before making a decision, the younger generation often
asks for their parents‘ opinions.
1.3.1.2. Harmony
Harmony is normally defined referring to the natural world as a cultural emphasis
on fitting harmoniously into the environment (unity with nature, protecting the8
environment, world of beauty). More appropriately, it may refer to non-assertiveness in
social relations. For Vietnamese culture, according to Hunt P.C. (2002), the concept of
harmony is based largely on the teachings of Confucianism, Buddhism and Taoism. Total
harmony is achieved by creating harmony within oneself and one’s family, as well as in the
outer world of humanity and nature. He also states that observing moderation and avoiding
extremes are some ways an individual can do to produce harmony. That‘s moderation and
avoiding extremes in verbal communication, daily life activities, consumption of food and
drink and in social interaction. This helps ensure their physical safety and they can adhere
to the moral imperative to keep their dignity unimpaired.
1.3.1.3. Respect
Hunt P.C. (2002, 4) supposed that ―respect is the foundation of Confucius‘ teaching
and it is the guiding principle of interpersonal relationships in Vietnamese society.‖
Vietnamese are expected to show respect to people who are senior to them in age, status, or
position. At home, they should show respect to their parents, older siblings, and older
relatives. This is expressed by obedience in words and action. Respect is part of the
concept of filial piety. Insults to elders or ancestors are very serious and can often lead to
severed social ties. Outside the family, respect should be paid to elderly people, teachers,
clergymen, supervisors and employers, and people in high positions through language and
demeanor. Puffer (2004, 204) explained that ―By giving respect, one gains respect. The
essential principle is: Show other people more respect than they apparently deserve;
simultaneously expect and assert less respect than you deserve.‖
1.3.1.4. Duty and honor
Duty and honor are among the highest cultural values. Individuals are instilled from
childhood with the values of honor, hard work and loyalty to the family. Individuals have
the ultimate duty to carry themselves with the utmost dignity in all circumstances so as to
not bring shame to oneself and the family. To lose face dishonors oneself and one‘s family.
The duty and role of each immediate and extended family member is well defined. These
duties and roles govern the actions of the individuals and are the sacrifices one makes to
one‘s family. For example, the role of the parents is to raise their children properly. Their
duties are not limited to providing food and shelter, but require them to educate and instill
the children with moral values. The children in turn have the duties to obey their parents
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and never to question their authority or teaching. When the parents get older, it is the duty
of the children to take care of them. (Hunt, P.C., 2002:4)
1.3.2. American cultural values
The United States, the home of a variety of immigrants from different races all over
the world, is a vast and diverse nation. It is these immigrants that have brought along with
them the peculiarity of their own culture, diversifying American native one. Being called
―a melting-pot‖, America is the place where a various racial and ethnic groups have been
combined together. However, it is also regarded as ―a salad bowl‖ where those various
groups have remained somewhat distinct and different from one another, making up a
richly diverse American culture. That‘s why the nation contains many regions and
subcultures that account for a wide spectrum of cultural norms. Although America's
communal history is relatively short, many U.S.-born citizens inherently display values
that are rooted in historical events. As with any culture, Americans have their own
distinguishable values.
1.3.2.1. Individualism
Individualism is the idea that the rights and freedom of the individual are the most
important in the society. The interests of the individual are considered to be more
important than the interests of the group. Whatever it may be called: individual freedom,
individualism or independence, it is the cornerstone of American cultural values that nearly
every American would agree upon as it permeates every aspect of American society.
This value shows greatly the desire and the ability of all American individuals to
control their own destiny without outside interference from the government, a ruling noble
class, the church, or any other organized authority. Or in Gary Althen‘s (1988) words,
Americans ―have been trained since very early in their lives to consider themselves as
separate individuals who are responsible for their own situations in life and their own
destinies. They have not been trained to see themselves as members of a close-knit, tightly
interdependent family, religious group, tribe, nation, or other collectivity.‖ This is
expressed mostly in the tradition and spirit of self-reliance which influence greatly the
young generation. It is said that the way they are raised teaches them to become
independent and individualistic in their everyday lives. American children usually have
their own bedrooms. Even very young children are given opportunities to make their own
choices and express their opinions. They are taught to be financially independent at a10
young age in order to get more freedom. For the youth, making friends, marriage or other
personal affairs are their own businesses, and they need not get their parents‘ permission.
At the same time, parents do not interfere with their children‘s privacy, including marriage,
work and hobby.
1.3.2.2. Self-reliance
Self-reliance is seen as the price paid for individualism. Americans believe that
individuals must learn to rely on themselves to keep their freedom. ―They own nothing to
any man, they expect nothing from any man; they acquire the habit of always considering
themselves as standing alone, and they are apt to imagine that their whole destiny is in
their own hands‖ (De Tocquevill, 2003). That is why Americans take credit only for what
they accomplish as individuals. They get no credit for having been born into a rich family
but pride themselves in having climbed the ladder of success, to whatever level, all by
themselves. Wanning, E. (1999) in ―Culture shock! USA‖ also said that ―In American, selfreliance is the fundamental virtue. Each person is a solo operation, and independence is
considered the birthright of the every child. Our highest aspiration is self-fulfillment, and
it’s only the unencumbered person who can become his true self.‖ What is more, an
expression of American self-reliance is that children usually leave home at the age of 18
and then they will make most of their own decisions without their parents‘ help. Generally
speaking, the youth ages from 18 to 21 tend to solve their economic and emotional
problems by themselves, for they think that depending on parents is ashamed of.
1.3.2.3. Equality
―All men are created equal‖ is one of the most famous quotations from the
Declaration of Independence, and the value of equality is considered fundamental to the
American spirit. This concept has given rise to some of the nation's deepest beliefs,
aspirations, and rights. It is so cherished that it is seen as having a religious basis.
Americans believe that all people are created equal and that all should have an equal
opportunity to succeed, ―no one is born superior to any one else.‖ (Althen, G., 1988)
Although it is not always achieved, Americans strive for equality. They commonly use the
first names of their elders, professors, and lawyers—a lack of deference to age and
authority that is commonly mistaken for disrespect or laziness by foreigners. Similarly,
their sensitivity to disparity and unfairness causes them to be outraged when someone
receives special privilege due to their family's wealth or notoriety. ―The idea of equality
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makes it difficult for Americans to understand hierarchical patterns of organizations
abroad.‖ (Steward, E.C. et al, 1991) They cannot believe the fact that ―the loyalty of
members of an organization may be the primary principle that explains otherwise
unintelligible actions and promotion.‖ Noting the absence of an emphasis on both
achievement and equality, American may fail to recognize the characteristics that
determine who are the high – status opinion molders and decision-makers. (Steward, E.C.
et al, 1991)
Equality of opportunity receives emphasis in American culture. Americans are
usually individually interested in achievement and expect rewards commensurate with their
accomplishments. It is clear that the cultural values predispose Americans to function most
effectively on an interpersonal level of equality. That‘s why the theme of equality is
―running through all American social relationships‖ and ―as an ideal, the value of equality
of opportunity remains pervasive in the culture‖ (Steward, E.C. et al, 1991)
1.3.2.4. Competition
Steward, E.C. et al (1991) claimed that ―Competition is the primary method among
Americans for motivating members of groups.‖ Because of the emphasis on the
individual, Americans can be competitive, and to be called a high achiever in the U.S. is
quite a compliment. Besides, ―Americans have a deep faith that in some fundamental way
all people (at least all American people) are of equal value‖ (Althen, G., 1988). This spirit
of equality makes them ensure that the race for success is fair for everyone no matter who
he is or he is rich or not. This leads to the fact that competition is a typical feature of
Americans. They believe that competition brings out the best in any individual and in any
system. It almost is seen as a race in which a person must try his best to achieve success.
Consequently, people who are more competitive seem to be much more successful than
others and they are honored as ―winners‖ in comparison with the ―losers‖. Even a child has
his own pressure of competition in life such as taking part in strong programs of
competitive sports provided by the public schools and community groups. That is one way
they learn to compete successfully.
1.3.2.5. Materialism and hard work
Materialism is simply a focus on or desire for material goods, and what Steward,
E.C. et al (1991) claimed to relate to ―a belief in the inviolacy of private property, a value
commonly asserted to be at the root of the Constitution and the American conception of12
democracy.‖ Therefore, Americans suppose that ―materialism is natural and proper‖ when
people criticize them for ―materialistic‖ and ―so concerned with acquiring possessions.‖
(Althen, G., 1988) What‘s more, they even ―consider it almost a right to be materially well
off and physically comfortable.‖ (Steward, E.C. et al, 1991)
Obviously, Americans‘ hard work is attached to the value of material possessions.
They believe that in life, one can improve their status through hard work and human
endeavor. Values such as thriftiness, hard work, and ingenuity resulted from the time when
people first settled in the western United States. There was so much land and so many
opportunities, but it was dangerous and difficult. These conditions led to an adopted
mentality of "work hard or perish" that has withstood the test of time and been passed
down through generations.
2. Communication
2.1. What is communication?
Communication is generally defined as the process of sharing or exchanging ideas,
information, etc. between two or more persons. However, there is a fact that the definition
of ―communication‖ is changeable from various scholars. Scholars of different fields
defined that communication focus on different factors: the hearer, the speaker and the
hearer, the message or the process of delivering the message, etc.
According to Beisler (1997), communication is the transmission from one person to
another of a message which is understood by the receiver as the sender intended. This
definition stresses on both the speaker and the hearer, somehow it is similar to the concept
of Levine & Adelman (1993): Communication is the process of sharing meaning through
verbal and non verbal behavior.
Berko‘s (1989) definition seems to be more specific when he supposed that the
process of communication is a conscious or unconscious, intentional or unintentional one
in which feelings and ideas are expressed in verbal and non verbal messages.
Communication occurs in intrapersonal, interpersonal, and public levels. Human
communication is dynamic, continuous, irreversible, interactive and contextual.
2.2. Cross – cultural communication
When people from different cultures communicate with each other, they normally
get problems. And the term ―cross cultural communication‖ is formed to give out the
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solutions for these communicative problems. It is likely that cross cultural communication
is very complex because different languages spoken and non verbal barriers usually carry
different meanings in different cultures.
According to the free encyclopedia Wikipedia, ―cross cultural communication is a
field of study that looks at how people from differing cultural backgrounds communicate,
in similar and different ways among themselves, and how they endeavor to communicate
across cultures.‖(http://en.wikipedia.org).Whereas, Levine and Adelman defined crosscultural communication as ―the process whereby one‘s culture affects interaction with a
person from another culture.‖ This definition emphasizes the impact of culture on the way
one communicates with other people. This concept is expressed with more details by
Nguyen Quang in his book Intercultural communication: ―Cross-cultural communication is
the communication (verbal and non-verbal) between people from different cultures:
communication that is influenced by actual values, attitudes and behavior; the influence of
culture on people and reactions and responses to each other‖ (1998:3).
2.3. Potential problems in cross – cultural communication
It is undeniable that there may be many difficulties, misunderstandings or
communication failures in cross – cultural communication as people of different
backgrounds communicate with different styles. They often use their own cultural values
to interpret and evaluate others‘ speech or actions. Their different cultural values may lead
to misinterpretations and misunderstandings which may even result in a total breakdown of
communication. Consequently, this can also be the cause of confusion, anger,
disappointment and culture shock.
3. Negotiation
3.1. What is negotiation?
In the book ―Cross- cultural business negotiations‖ (1999), Hendon et al claimed
that ―negotiation is the process by which at least two parties try to reach an agreement on
matters of mutual interests.‖ He also added that negotiation is ―a decision-making process
that provides opportunities for the parties to exchange commitments or promises through
which they will resolve their disagreements and reach a settlement‖ and ―two or more
parties striving to agree when their objectives do not coincide.‖ According to Sarkar
(2010), ―negotiation is conceived to be a process of interactions involving two individuals
or groups reaching a joint agreement about differing needs or ideas.‖ It can also be viewed14
as a type of social interaction for obtaining a mutual commitment among two or more
parties who have different purposes or concerns which are considered to be important to
them. In cross-cultural negotiation, it is more complex due to differences of
communication styles, traditions, cultures, political systems, customs, and ideologies of the
two or more parties.
Knowledge of trade, economics, international businesses, politics, sociology,
psychology, marketing, sales, communications, and even in conflict resolutions is applied
in negotiations. Negotiation takes place when there is an economic transaction or a dispute.
‗Negotiatus‘ in Latin root and ‗negocios‘ in modern Spanish both refer to ‗businesses‘.
Negotiation is implied to provide different parties with equal opportunities and convenient
environment so that their conflicts could be minimized and a mutual agreement could be
established after exchanging information, discussing in a conclusive manner (Sarkar,
2010).
3.2. Negotiation as a form of communication
According to Hendon et al (1999), the negotiation process proceeds as an interplay
of perception, information processing, and reaction; whereas Stulberg (1993) supposed that
process as an obligatory argument resolution process in which two or more parties classify
problems, suggest and evaluate ways of solving these problems that all the parties mutually
accept. Therefore, negotiation is demonstrated through communication. Negotiation and
communication are inherently intertwined; negotiation cannot occur without some means
of communication. Negotiation communication is different in comparison to other dialogue
forms as it is used to exchange information, change behaviors, or persuade people by
concentrating on achieving commitment from the other parties to perform in certain ways
(Stulberg, 1993).
Businessmen negotiate in order to arrive at a mutual agreement founded on demand
and supply. Means of communication include face-to-face spoken, written, or telephone
forms. All participants hold various implicit or explicit favorites and view their desired
outcome as their profit goals and their behaviors should be adapted to those of the
negotiation partners. Therefore, negotiation is said to be a social interactive process. In
order to succeed in an international business negotiation, all these aspects should be
carefully taken into consideration.
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Long-term business relationships can be built with good communication in the
negotiation. In contrast, negative effects such as relationship breakdown, costly
renegotiations, and drawn out processes may be consequences of poor communication. So,
what decides a good negotiation communication? An effective negotiation communication
must lead to an agreement on the semantic level, which means that it should be free of
misinterpretation of common symbol transmission. Moreover, negotiation messages of a
participant should be utterly perceived by the others, or say another way, the pragmatic
level must be attained. Also, each communicative act brings specific validity claims such
as appropriateness, truthfulness, truth, and comprehensibility that must be evaluated by the
recipient. Perfectly, if the recipient rejects any of validity claims, he or she will take part in
a conversation with the sender to deal with the communicative breakdown.
Good communication in business negotiation should exhibit high levels of
coherence and transparency, a mutually positive assessment of the interaction, and the
absence of communicative misunderstandings on all semiotic levels. A shared perception
of the terms and spirit of the deal result in the implementation of any commitment obtained
by the parties (Schoop, Ostertag, et. al, 2010).
Negotiation communication involves a particular duality: a balance between
competition and cooperation need to be found among negotiators. Since negotiators are
mutually dependent and their goals can never be reached unilaterally, and because they
often try to build a long-lasting business relationship, problem-solving activities such as a
concession behavior and rational argumentation are carried as a way to obtain a mutually
agreeable resolution to sustainable cooperation. Simultaneously, negotiators are trying to
win over the resource distribution and usually see their goals as mutually aggressive. Thus,
negotiators often employ tactics and strategies such as threats or persuasion.
Another significant characteristic of communication in business negotiations is the
relevant series of rules and standards. Social constraints affect negotiators‘ strategies,
behavior, and decisions. Negotiators are also influenced by standardized business process
that identify communication media and communicated content as well. Nevertheless,
communication in business negotiations is astonishingly rich and provides a diversity of
actions in which values and norms are moved forward or reinterpreted animatedly.
Negotiation communication‘s key components are argumentation and bargaining.
While argument involves claiming normative validity or factual truth with the aim to16
persuade (and, therefore, supposes a willingness on the other party‘s part to agree to the
better argument), bargaining, in contrast, includes promises and threats with an intention to
change behavior. Despite the seemingly distinct modes of actions for negotiators, it is
found that these modes regularly intertwine in real negotiations. The reason why they are
not separable is the social requirement of subjective claims. Furthermore, negotiations are
contended to include an agreement part and an information part, which support the theory
of a double-level of language, involving a formal and an information communicative layer.
Communication in business negotiations include two distinct but interwoven modes that
should be taken into consideration for an effective negotiation communication.
Communicative action and strategic action can take place in parallel, and both support
successful negotiation processes. Strategic actors, for example, may wisely act like
communicative actors to save face or persuade the other party if that is likely to be the
most potential strategy (Schoop, Ostertag, et. al, 2010).
3.3. Elements of negotiation
Paul R. Horst (2007) introduced four basic elements of negotiation as following:
Actors (negotiators): In a negotiation, the actors are members of some forms of
culture, whether it is national, ethnic, professional or any of a multitude or combination of
other types of cultures. As such, their cultural background, which includes the values
associated with and shared by that culture, will play a significant role on the negotiation
especially how they ―perceive issues, other actors, and their intentions.‖ The culture itself
may determine who the negotiator will be. For example, in some cultures, women may not
be allowed to participate in a negotiation.
Structure: The structure of a particular negotiation also holds examples of how
culture can influence the negotiation process. The structural dimension includes variables
such as the size of the negotiation team, the number and type of issues, power distribution
between the parties, the organizational setting...
Strategy: The strategy used by negotiators is another area of where culture holds
an influence on the negotiation process. Strategy is the actor‘s orientation used to achieve
their goals. Certain cultures, based on their values, do not shy away from a confrontational
approach and aggressive tactics. This could lead the negotiators to adopt a more
competitive style of negotiations. Other cultures may adopt a much less confrontational
style in order to avoid direct, aggressive conflict. This culture may adopt a more
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collaborative orientation toward the negotiations. The approaches used to deal with the
uncertainties or risks within the strategy framework may also be affected by differing
cultural preferences. Some cultures might approach a negotiation from an inductive style
whereas the others prefer deductive style.
Process: This is the actual interaction between parties. These interactions are the
methods or tactics that the parties use to communicate; that is, the way they exchange
information, seek out methods to create options, or find room for maneuver and
concessions. The manner in which the parties are communicating and the area of
communication style are important elements in the negotiation process. The potential for
misunderstandings caused by the hidden messages transmitted by a high context negotiator
complicates the negotiation process, especially if negotiating with parties from a culture
that is ambiguity adverse.
3.4. Business negotiation
A business negotiation is considered to be a formal event that happens at the
common bargaining table where negotiators discuss over performance and price or a
complicated term of partnership business. Accordingly, it is an increasingly important
requirement for businessmen if they wish to expand their enterprise horizons to improve
and better their negotiation skills. In global business context, negotiations are the focal
point of international diplomacy. The wise implementation of negotiation can support a
party‘s concern and Giúp get rid of unexpected alternatives such as litigation, trade wars, or
prolonged conflict settlement process under the WTO system. In the broad context of trade
relations, international negotiations may involve negotiations over sales, tariffs, prices, or
qualitative negotiations over general rules about safety and environment, health, labor, or
other emerging conflicts and effects of trade related agreements (Sarkar, 2010).
3.5. Characteristics of business negotiation
―Negotiations do not happen in a vacuum.‖ They occur in a certain environment,
and its elements such as surrounding, time, and place can intensely have an effect on the
course of discussions. In international transactions, in which one‘s environment might be
definitely new to the others, a blockade to reaching a mutual commitment might be
constituted (Salacuse, 2010).18
As an author with great interest on international business negotiation, Ghauri
(2008) provided a list of characteristics that he supposed to be common to all business
negotiation situations:
- There are two or more parties. The negotiation as a process is considered to occur
between individuals, within groups and between groups.
- There are one or more issues to be resolved.
- There are various positions, which define responses of the negotiator on a
particular issue.
- There is a conflict of needs and desires between two or more parties, which then
search for a way to resolve the conflict.
- The parties negotiate by choice. This means that they negotiate in order to get a
better deal with negotiating in comparison by simply accepting what the other side
voluntarily gives them or lets them have.
- A "give and take" process is expected, this means that both sides modify or move
away from their opening statements, request or demands.
- The parties prefer to negotiate and search for agreement rather than to fight
openly, they prefer to invent their own solution for resolving the conflict.
- Even if the outcome is not the one expected at first, each party must retain hope
that an acceptable outcome can be reached.
- Successful negotiation involves the management of tangibles such as the price,
the terms of agreement as well as the resolution of intangibles, which are the underlying
psychological motivations that directly or indirectly influence the parties during the
negotiations.
3.6. Cross - cultural business negotiation
Globalization is an important factor that increases the volume of negotiations in
person among members of different cultures (George, Jones, et. al, 1998). Negotiation is
commonly a communication process by which different parties look for their own interest
advancements through commitment on some future transactions. These negotiations could
be open when parties from different countries set up a round table meeting to discuss their
preferences, or they might be implied when two engineers from different companies meet
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up at the project side to talk about their upcoming equipment arrival. In international
business, negotiation is an invasive, continuing process and is essential to all kinds of
business activity. Accordingly, global businessmen have to negotiate in their daily
activities (Salacuse, 2010).
Cross cultural business negotiation is one of many specialized areas within the
wider field of cross cultural communications. It is suggested that people from different
countries perceive decision-making situations differently owing to the cultural
characteristics of their nation, so negotiation approaches vary accordingly. Additionally,
negotiators‘ feelings, moods, and emotions also play in information processing in cross
cultural negotiations. While there is not much difference in the experience of primary
moods and emotions, their demonstration and correlates are likely to be affected by both
universal and culturally-specific factors. These factors include individual differences,
cross-cultural differences, and context. Of which, cross-cultural differences are controlled
by internalized cultural values and norms, emotional expression, and linguistic style
(George, Jones, et. al, 1998).
Cultural differences in an international negotiation are a possible obstacle to
successful transactions. It is the fact that international business activities not only take
place across one‘s border, but also across the cultures. Culture has a powerful impact on
people‘s thought, communications, and behaviors. It also has an effect on their negotiation
styles. Effective international businessmen should understand and control the effect of
cultural differences to ensure the success of their negotiations (Salacuse, 2010).
In international business, the success or failure of negotiations, especially for jointventure, is prominently and largely determined by the perceptions of cultural values.
Hofstede (1980) figured out the following elements which are regarded to be significant in
the global business negotiations including a variety of cross-cultural issues. ―Negotiating
goal and basic concept, protocol, communication, risk-taking propensity view of time:
decision-making system: form of agreement, power distance, personal style, coping with
culture.‖ Before deciding to enter into any international business negotiation, traders
should consider these issues including a variety of cross-cultural and cross-cutting issues
(Sarkar, 2010).
3.7. Potential problems in cross cultural business negotiation.20
Cross cultural negotiations are not easy tasks. There is a great separation among
negotiators who come from different cultures: physical features, different language,
different way of defining business goals, perceiving the world, expressing thinking and
feeling, and showing or hiding motivation and interests (Ghauri, 2003). That‘s why many
potential problems often occur during cross-cultural negotiations. According to Frank
(1992) and Hendon et al., (1996, p. 241), those problems may be:
- Insufficient understanding of different ways of thinking.
- Insufficient attention to the necessity to save face.
- Insufficient knowledge of the host country, including history, culture, government,
status of business and image of foreigners.
- Insufficient recognition of political or other criteria.
- Insufficient recognition of the decision-making process.
- Insufficient understanding of the role of personal relations and personalities.
The conflict and compromise that happens during negotiations has an intrinsic
affective element, and touching or sentimental reactions such as suffering or upset are
usually felt in the negotiation process. In addition, the negative escalation causes
increasing mistrust, regular arguments, and protective strategies which can lead to utter
attacks and defense. On the base of the above potential problems, this research will try to
find out the specific potentials problems in the case of Vietnamese- American business
negotiation.
CHAPTER 3: METHODOLOGY
1. Research method
This study seeks to find answers to the following research questions:
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1) What are the similarities and differences between Vietnamese and American
business negotiation?
2) How are Vietnamese and American cultural values reflected in Vietnamese –
American business negotiation?
3) What are potential problems in Vietnamese – American business
negotiation?
In this research, the methods used to process the collected data are both qualitative
and quantitative. All the considerations, comments and assumptions are based on the
analysis of statistic data and reference to relevant publication. These methods are used
because by ―using more than one method within a research program, we are able to obtain
a more complete picture of human behavior and experience. Thus, we are better able to
…achieve our research goals more quickly.‖ (Abbas & Teddlie, 2003: 189).
2. Data collection instrument
According to Frazer, L. & Lawley, M. (2000), questionnaire is ―a formalized set of
questions for obtaining information from respondents‖ and ―a well-designed and
administered questionnaire can provide the data necessary to address research questions.‖
Verma & Mallick (1999) also had the same idea: ―The questionnaire is often a vital tool in
the collection of data‖ and ―it can provide data economically and in a form that lends itself
perfectly to the purposes of the study.‖ With the above advantages, questionnaire is used as
an instrument to collect data for this research. An undeniable strong point of using
questionnaire is that it gives respondents a chance to see the written form of the questions
and answer them at their own time. Therefore, feedback from a large number of
respondents can be quickly collected because the process of completing questionnaire
doesn‘t take much time.
The questionnaire is first formulated in English and then literally translated into
Vietnamese. Therefore, the two versions have exactly the same content. The questionnaire
consists of two parts. In part one, respondents were asked to give their personal
information such as age, gender, nationality and especially their experience in Vietnamese
– American negotiation. Including 15 questions, part two aimed to collect information on
their attitude and perceptions of what happen in a negotiation. Respondents can choose the
suitable answer to each question or give their own ideas in the space provided if their idea
is different from the ones provided or if they want to make their choice more explicit. The22
questions were arranged in the order of the main elements of a negotiation: questions 1 and
2 relate to the ―actors‖ – the negotiators of a negotiation. The aim of these two questions is
to find out the criteria that Vietnamese and American firms base on to select their staff
members to participate in a negotiation, and the attitude of the negotiators towards the
other party members‘ status, position or age. Questions 3 and 4 test the characteristics of
the structure of a negotiation - that is the size of the negotiating team. Questions 5 focuses
on the preferred negotiation approach of each party and question 6 is to see ―whether
negotiating a business deal is an inductive or deductive process‖ (Salacuse, 2004); and the
attitude on risk-taking is mentioned in question 7. The last group including questions from
8 to 15 Giúp to find out the goal of each party when coming to the negotiating table, their
relationship-building, trust-building, decision-making and non-verbal communication.
3. Data collection procedure
The questionnaires were delivered to American and Vietnamese business people in
face-to-face meetings and conversations, and via email. There is a fact that gathering
sufficient number of American and Vietnamese negotiators or people who have experience
in the field was extremely difficult. I had to make use of all the personal relationships that I
have as well as of my friends, colleagues, former classmates, neighbors, relatives … in
order to get enough data for the research.
4. Informants
As mentioned above, the questionnaires were delivered to many people and 22
American and 22 Vietnamese business people were finally selected as eligible informants.
Among these, only 8 Vietnamese and 3 American are female. The ages of all the
informants range from 26 to 60. They are employers or employees in different types of
company or business group. Their fields vary from sales, import/export to agency, etc. But
what they have in common is that they all have experience in Vietnamese – American
business negotiation. The majority of American informants are still working in Vietnam
and the rest are in the U.S., whereas all the Vietnamese ones are in Vietnam.
CHAPTER 5: CONCLUSION
1. Conclusion
From the above analysis, it can be concluded that cross-cultural negotiations are
very complex and uncertain. The complexity and uncertainty of cross-cultural negotiations
are mainly resulted from the differences in the understanding and recognition of the ways
of thinking and behaviors of people from another culture. This is not an exception in the
case of Vietnamese and American business people at a negotiation conference.
Coming from a highly individualistic culture, American negotiators tend to
emphasis on individual values such as self-reliance, equality, competition, materialism and
hard work. These cultural values are expressed deeply in their negotiating actions. They
highly appreciate individual negotiators with negotiating skills, expertise and experience in
negotiating with the counterpart, who can deal with any possible risks and has the
complete authority to make decisions at the negotiation. Their main objective is the
negotiating itself, so they do not care much about the position or age of the other
negotiators or the size of the negotiating team, as well as not spending too much time on
other activities around the negotiation such as giving gifts to the counterparts, going to
restaurants or karaoke, etc. During the negotiation, they follow deductive style to seek
agreements and always find solutions to manage conflicts.
In contrast, Vietnamese negotiators are affected by their collectivist values such as
harmony, respect, duty and honor. Their ways of thinking and behaviors at the negotiation



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