“Cultural differences significantly impede the
success of intercultural negotiations”.
Trends of the past decade have increased pressure on organizations to conquer foreign markets. The spread of democratic governments, the transformation of many closed markets to free market capitalism, and the advent of technology that permits instant global reach necessitate U.S. managers who are adept at communicating and managing across different cultures. As noted by Wharton business professor Thomas Donaldson (1996, 48) “Even the best-informed, best-intentioned executives must rethink their assumptions about business practice in foreign settings”.
Perhaps one of the most daunting tasks for an American manager is working and living in China, where culture radically differs from U.S. culture. Thus, American managers who do business in China often encounter culture clash. However, the culture-clash dynamic is twofold. On the one hand, the American manager must learn to understanding the values, customs, ethics, and behaviors of another culture. On the other hand, the American manager must rethink the attitudes, values, ethics, and behaviors that have been ingrained in him by his own culture. This process is often arduous because of the disparity between American and Chinese culture. As Primont (2000, 70) notes “There are differences in thinking between Spaniards and Americans, between French and Germans-between Americans and the British, for that matter. But the differences pale in comparison with those between Chinese and Westerners”. These differences often complicate and thwart the best-informed and best-intentioned U.S. managers when conducting business in China.
In the past, U.S. companies were successful focusing solely on their domestic market. Because of the trends discussed earlier, this is no longer possible because the U.S. and other nations have become part of the global economy or market. China di...