Vai trò của am hiểu văn hóa và kinh nghiệm giao tiếp trong quá trình kí kết hợp đồng thương mại trong các doanh nghiệp có vốn đầu tư nước ngoài

THAI NGUYEN UNIVERSITY SCHOOL OF FOREIGN LANGUAGESLE THI THUY NGA THE ROLE OF CULTURAL INTELLIGENCE AND COMMUNICATIVE EXPERIENCE IN THE PROCESS OF GETTING BUSINESS CONTRACT IN FDI COMPAN

THAI NGUYEN UNIVERSITY SCHOOL OF FOREIGN LANGUAGES

LE THI THUY NGA

THE ROLE OF CULTURAL INTELLIGENCE AND

COMMUNICATIVE EXPERIENCE IN THE PROCESS OF GETTING BUSINESS CONTRACT IN FDI COMPANIES

(Vai trò của am hiểu văn hóa và kinh nghiệm giao tiếp trong quá trình kí kết hợp đồng thương mại trong các doanh nghiệp có vốn

đầu tư nước ngoài)

M.A THESIS

Field: English Linguistics Code: 8220201

THAI NGUYEN UNIVERSITY SCHOOL OF FOREIGN LANGUAGES

LE THI THUY NGA

THE ROLE OF CULTURAL INTELLIGENCE AND

COMMUNICATIVE EXPERIENCE IN THE PROCESS OF GETTING BUSINESS CONTRACT IN FDI COMPANIES

(Vai trò của am hiểu văn hóa và kinh nghiệm giao tiếp trong quá trình kí kết hợp đồng thương mại trong các doanh nghiệp có vốn

đầu tư nước ngoài)

M.A THESIS(APPLICATION ORIENTATION)

Field: English Linguistics Code: 8220201

Supervisor : Dr Hoang Ngoc Tue

THAI NGUYEN – 2019

to be my own work, but steered me in the right the direction whenever hethought I needed it.

I also would like to thank the teachers from School of Foreign Languages Thai Nguyen University, who have given me useful advices and conditions forthe completion

-I would also like to thank all the respondents who took time out of theirbusy schedules in order to participate in this study and to make the study asuccess Finally, I must express my very profound gratitude to my parents and to

myboyfriend for providing me with unfailing support and continuousencouragement

throughout my years of study and through the process of researching and writingthis thesis This accomplishment would not have been possible without them.Thank you

Author

DECLARATION -***** -

I certify that the monitor thesis entitled “The role of cultural intelligence

and communicative experience in the process of getting business contract in FDI companies” is my own study in the fulfillment of the requirement for the

Degree of Master of Arts at Faculty of Foreign Language, Thai NguyenUniversity

Signature:

Le Thi Thuy NgaThai Nguyen, 2019

The world’s economic power is shifting as globalization, influenced byeconomic growth, trade policy, and new trading relationships presses onward.Consequently, more efficient methods and outcomes are necessary The purpose

of the study is to find out if cultural intelligence and comunicative experience arerelated to the success of a business negotiation The empirical part of this studywas done using qualitative research method Semi-structured interviews werecarried out among 4 participants from different companies Results indicated thataggregate cultural intelligence predicts intercultural negotiation outcomes,intercultural negotiation satisfaction, and intercultural negotiation performance-satisfaction Together, the findings suggest that the cultural intelligence scale can

be relied upon to predict intercultural negotiation outcomes as well to selectmanagers for improved negotiation performance

ACKNOWLEDGMENTS 1

DECLARATION 2

ABSTRACT 3

CHAPTER 1: INTRODUCTION 6

1 Background 6

2 Purpose, research question and scope of the study 7

3 Research question 8

4 Structure of the study 8

CHAPTER II: LITERATURE REVIEW 9

1 Cultural intelligence 9

1.1 Basic definition of culture and intelligence 9

1.2 The concept of cultural intelligence 12

1.3 Four facets of cultural intelligence 16

1.3.1 Metacognitive CQ 16

1.3.2 Cognitive CQ 18

1.3.3 Motivational CQ 19

1.3.4 Behavioral CQ 20

2 International Negotiation 21

3 Role of Cultural Intelligence in the International Business 23

4 The difficulties when developing Cultural Intelligence 24

CHAPTER III: METHODOLOGY 26

1 Research design 26

Culture and its role in organizations 28

2 The interview setting and participants 30

3 Research question 32

4 Data collection 32

5 Data Analysis 33

CHAPTER IV: FINDING AND DISCUSSION 34

1 Cultural Intelligence: Cultural awareness 35

2 Cultural Intelligence as a skill for effective businessman 38

3 Challenges of CQ in culturally diverse environment 40

CHAPTER V: CONCLUSIONS 42

1 Recommendations 42

2 Limitation 43

REFERENCES 44

APPENDIX 1 47

it is non-denied when international business negotiation becomes a necessaryrequirement for companies They contact to customers, suppliers from anywherethey get benefits Getting a business contract is not an easy task for anyone Andwith the businessmen at FDI companies, it is more difficult because they mustnegotiate with foreigners, who come from many different countries in the world.

In the progress of negotiation, cultural differences which has significantly impact

on the outcome (Angelmar & Stern, 1978), because international businessnegotiation involves at least two or more parties coming from different culturalbackgrounds (Liu & Liu, 2006) Cultural adaptation is an important dimension ofthis complexity and requires appropriate communication skills (Yamazaki andKayes, 2004) In the table, negotiators from different countries will have theirvalues and observation, and this will cause some challenges through the process.This is the reason: cross-cultural interactions might threaten people as theyrealize that the previously taken-for-granted assumptions they had are no longerrelevant or appropriate when communicating with people from a differentculture (Kim,

2001) The feeling of ‘losing-ground’ often leads to anxiety (Bücker, 2014).Studies have shown that cultural intelligence (CQ), which is a person’s ability toadapt effectively to new cultural contexts (Earley and Ang, 2003), can help to

reduce anxiety during intercultural interactions (MacNab, Brislin and Worthley,2012), as it helps individuals to interpret unfamiliar cultural cues (Brislin et al.,2006).

The controller in negotiation table will get achievement, and particularly,negotiators play important role is the table Beside the advantages of theircompanies such as prices, transportation, process, etc , their own experiences,confidence and skills in intercultural context also take part in their successful

The negotiators should be raised more awareness about culturalintelligence and their performance to get the best achievement when they have aninternational business negotiation

There has been a growth researches and papers focused on internationalnegotiation or intercultural context Many researchers also focused on negotiatorsand provided guides for them However, they only referred to developedcountries and other developing countries Vietnam is a developing country Moreand more companies from over the world invest into Vietnam, we call it foreigndirect investment companies (FDI companies) The leadership of FDI companiesalso often contact and make an international contract Therefore, this paper willaddress the gap of literature regarding on negotiators’ performance and CQ inVietnam FDI companies This research also figured out the impacts ofnegotiator’s profile to their international business contract These two factors will

be developed in another way with the previous research

2 Purpose, research question and scope of the study

International business negotiation is a complexity task, then in thissituation each evolved parties always hope about a success negotiation, that isnegotiation outcome

The businessman taking part in a business negotiation can be divided into

 Having basic knowledge about cultural intelligence, however do notknow exactly to improve it

Therefore, the result of this research can be developed to 2 trends for 2types of businessman

This research will be conducted in Thai Nguyen Industrial Zones to findthe difficulties about cultural intelligence and communicative experiences afterthat suggesting the best solution and recommendations for businessman.Moreover, this research can help universities to make a suitable syllabus throughteaching and studying

3 Research question

To get the answers to the problem statement, the author need to formulateresearch questions that can be helpful This question will be critical in getting thecorrect answers, seeing as good questions give good answers:

role of Cultural Intelligence in business negotiation?

4 Structure of the study

The research study includes five (5) chapters The first chapter providesthe background of the study, general understanding of issue It gives thejustification for the project and discusses the importance of the topic Thischapter also shows what the objective of the study is and which questions author

is going to answer during the research

The second (2) chapter summarizes the relevant literature and dealing thetheoretical background relevant to the research matters and previous studies inthe field This chapter also gives the explanations and definitions for the mainconcepts used in this study

The third (3) chapter tells the reader about chosen methodology andmethod in this study This part describes the entire process of conducting theresearch: choosing candidates for interviews, contacting these participants, takinginterviews from the respondents, questions asked The findings that are presented

in the fourth (4) will be followed with the last fifth (5) chapter of discussions andconclusions This chapter links the theory with empirical findings, as well asmakes the contribution suggestions for the existing theoretical knowledge andreal-life practices in business negotiation

CHAPTER II: LITERATURE REVIEW

This chapter summarizes the relevant literature and dealing the theoreticalbackground relevant to the research matters and previous studies in the field.This section also gives the explanations and definitions for the main conceptsused in this study

1 Cultural intelligence

1.1 Basic definition of culture and intelligence

Before discussing cultural intelligence and its aspects, it is important to go

to the root of the matter and start with the definition of culture and intelligenceand the reasoning behind establishment of the theory of cultural intelligence

Geert Hofstede in his work” Culture and organizations” writes “Socialsystems can exist only because human behavior is not only random, but to some

programming and the more accurately we know the situation, the more sure ourprediction will be.” (1979, P.15)

For a long times the term “general intelligence” had more narrow meaning

as an ability to solve problems in academic settings Schmidt and Hunter (2000,p.3.) acknowledge general intelligence as” the ability to grasp and reasoncorrectly with abstractions (concepts) and solve problems.” It is not merely booklearning, a narrow academic skill, or test - taking smarts Rather it reflects abroader and deeper capability for comprehending our surroundings – “catchingon”, “making sense” of things, or “figuring out” what to do

Nowadays it is universally acknowledged that the intelligence does notstay only inside the classroom, but is a part of a bigger picture and belongs to areal world, where the social aspect (social intelligence), emotional aspect(emotional intelligence) and practical intelligence make general intelligencemobile and applicable to a certain situation and turn it into successfulintelligence

In opinion of Robert Sternberg, a professor of Human development inCornell and an author of the Diarchic theory of human intelligence: “Intelligencehas to be understood, measured and developed in its cultural context

culture refers to observable and visible artifacts and practices of cultures thataddress

fundamental human needs of gathering food and relating to others, theenvironment and the universe (Brown, 1991; Murdock, 1987; Triandis, 1994).The following elements can be referred to the objective culture: knowledge ofeconomics (capitalism versus socialism), legal aspects, political system,knowledge of the types of traditional cultures (matriarchal and patriarchal),beliefs and typical role expectations from males and females, sociolinguisticknowledge regarding rules of languages, usage of non-verbal elements,understanding other languages and dialects Subjective culture describes thehidden psychological features of cultures that are less obvious It consists of thevalues, beliefs, norms and assumptions that are shares within the society.Although the each nation has a particular unique culture, there is still similarity

in core beliefs and concepts are set in the different environments What isdifferent is the way in which members of a society interpret these concepts Forexample, every culture has a notion of “Time” Geert Hofstede explains culture

as “the collective programming of the mind that distinguishes the members ofone category of people from another” One can immediately distinguish thephrase collective programming” Richard D Lewis in his book “When culturescollide” (2012) interprets collective programming as a process of transformation

of national/regional concepts, learnt from the early childhood, into core beliefs,which are almost impossible to ignore or discard Those core beliefs arequestioned or weakened when the belief holder travels abroad or interacts with aperson with a set of core beliefs different from his own At that point so called

“culture shock” is imposed on a belief holder, which is a result of not justperson’s visual observation, but as a result of action or an utterance The beliefholder faces dilemma of either accept the differences and try to work on findingthe common grounds of interaction or to reject anything which is divergent tothe core beliefs The decision-making moment is the evidence of possession

or lack of the cultural intelligence

1.2.The concept of cultural intelligence

The concept of cultural intelligence (CQ) has been introduced into theinternational business literature by Earley (2002) and Earley & Ang (2003).Earley et al understand cultural intelligence as “a person’s capability tosuccessful adaptation to new cultural settings, that is, for unfamiliar settingsattributable to cultural context” (Earley et al., 2006: 5) Since the introduction of

CQ in 2002, a number of different scholars have dealt with this concept, whichhas led to a variety of different definitions and applications of CQ Thomas et al.(2008: 126) have summarized in table form these definitions, and thereby give athorough account for all definitions of CQ to be found in business literature tothat date Thomas et al.’s presentation has been modified though in order toincorporate definitions made by scholars not using English as their workinglanguage

It is interesting to note that to this date only a fairly small number ofscholars have been working within the field of CQ Furthermore, Earley andAng’s understanding of CQ has so far been the most dominant one in terms of itsapplication in empirical studies, of which however only a few have beenconducted to this date (Earley & Peterson, 2004; Ang et al., 2006; Templer et al.,2006; Ang et al 2007)

It has only been recently that two quite different conceptualizations of CQwere coined: the concept of CQ by Thomas (2006) and the concept of CQ byPlum (2007; 2008) Thus, arguably the conceptualizations of culturalintelligence can be broadly divided into three different approaches: the approach

of Earley & Ang, the concept of Thomas et al., and the conceptualization ofPlum On basis of these different approaches to cultural intelligence a briefoverview on the literature concerned with this subject will be presented

According to Earley et al (2006: 22ff), the areas of CQ mentioned aboveare somewhat related to each other, but, as also depicted in exhibit 4.2, they arenot understood as an interrelated system (see also Earley & Peterson, 2004: 109).Thus, arguably, it is assumed that the three areas of CQ are distinct from eachother This notion seems to be rather functionalistic as for example the exchange

of business cards (a facet of behavior) includes both an aspect of motivation (one

is interested in getting to know the other’s name, position and so on) and culturalstrategic thinking, as one so may know how to address the other properly.Therefore, it can be argued that CQ conceptualized as a system of interrelatedareas seems to be better suited to explain why some people are more successful

in cross-cultural encounters than others

1.2.1 Intercultural Engagement

This dimension comprises emotional and motivational aspects importantfor improving contact and cultural bridge building As indicated previously, onehas to be interested in the other and motivated to create results together with theother This in turn asks for a certain emotional maturity as embarrassingsituations may arise during the cultural encounter In these situations one should

be able to handle one’s emotional reactions as well as those of the other

Moreover, one should appreciate “that the reactions may be culturally

conditioned, and not mean the same thing to both parties” (Plum, 2008: 24) This

very quote also indicates the overlapping nature of the three dimensionsemployed by Plum, as knowing that a given reaction may be caused by certainculturally influenced preferences arguably is an aspect of cultural understanding

as well The same is true for the aspect of mental flexibility as cross-culturalencounters may change a person’s own cultural understanding of him- or herself.Thus, one should be open for change which means that one should show a

“learning attitude, curiosity and the courage to allow [oneself] to be changed by

the intercultural encounter” (Plum,

2008: 237) In order to be able to learn from an unfamiliar cultural context one has

to be fully present and pay special attention to the situation at hand in order torealize signs indicating that steps have to be taken to improve the cross-culturalcommunication in question as it otherwise may lead to confusions.

1.2.2 Cultural Understanding

The second dimension is understood as “the knowledge and mental

dimension” of CQ (Plum, 2008: 26) The main aspects within this dimension are

cultural self-awareness, general knowledge of cultural differences, and the talent

to transfer experiences made in one cultural encounter to another culturalencounter, which may take place in another cultural field Thus, Plum takes thestance that one has to conceptualize oneself and the other as cultural beingswhose worldviews and behaviors can be caused by culture Even though theactions of the culturally other cannot be predicted, some detailed knowledge ofthe other person’s culture may help to better maneuver in the situation inquestion However, in order to handle the cultural encounter successfully, oneshould be able to sense and notice the cultural differences at hand This impliesthat one should be aware of not overestimating the influence of culture onpossible misunderstandings as these just as well could be caused by differences

in personality or other aspects Therefore, one should be able “to look at the

situation in a broader perspective and not to exaggerate the importance of cultural differences” (Ibid: 29).

As indicated above, cultural differences play a role in different culturalfields such as professional, organizational or national areas According to Plum(2008: 28), experiences made in one cultural field can be transformed intogeneral knowledge of cultural mechanisms This knowledge in turn enables a

person to better understand situations in other cultural field as “the cultural

mechanisms at play are comparable” (Plum, 2008: 28f) Therefore, the

understanding, “which can prepare us for all sorts of cultural encounters” (Ibid:

29)

1.2.3 Intercultural Communication

In Plum’s conceptualization of CQ, Intercultural Communication is thethird dimension of interest and it comprises more aspects than merelycommunication She understands this component as one of “cultural practice”and as such it is the most important one to her (Plum, 2008: 29f) As alreadyindicated above, Thomas et al.’s definition of CQ no longer incorporates acomponent of “action”, since culturally intelligent behavior is viewed as the

outcome of CQ.

Moreover, as this dimension includes verbal and non-verbalcommunication along with written and potential other means of expression, inany encounter communication in one way or the other will be expressed In order

to interact successfully, one has to be aware of one’s own mode ofcommunication, meaning that one should be able to stop some of one’s routineexpressions and reactions with the aim of improving the contact to the other byestablishing common patterns of communication In other words, cultural

intelligent communication asks for the ability to turn off one’s cultural autopilot.

In order to establish common patterns of doing things, one firstly has to be aware

or made aware of one’s actions Therefore, at times one should be able to movethe conversation to meta-level to discuss how the conversation is conducted.Moving to the meta-level may also help to change one’s perspective on certainissues discussed Arguably, not all persons dare to take such a step, but it is an

important part of intercultural communication that one has “the courage to

experiment and take a new approach to the situation, to feel [one’s] way and find

‘new steps’” (Ibid: 31) At times, the steps taken may fail, but in order to

communicate successfully across cultural borders, one should be persistent intrying out different approaches to the situation at hand In this context, it issignificant to ask for

feedback in order to alter one’s actions appropriately, which in turn asks for one’scapability to apply a variety of communication tools in a given situation.

1.3.Four facets of cultural intelligence

Earley and Ang (2003) utilized Sternberg’s multiple-loci of intelligence tocreate a concept of Cultural Intelligence as a four-dimensional structure withmetacognitive, cognitive, motivational and behavioral components within theculturally diverse environment Metacognitive CQ is an individual capability toacquire and understand cultural knowledge and is focused on higher - ordercognitive processes with capability to create plan, monitor and revise mentalmodels of cultural norms for countries or groups of people Cognitive CQ isbased on the knowledge of norms, practices and conventions on differentcultures acquired from educational and personal experience (Ang et al, 2007p.338) Motivational CQ reflects the capability to be interested and motivated inlearning new about other cultures and be willing to function in situationsculturally different from its own Behavioral CQ is responsible for demonstratingappropriate behavior in a certain cultural context and is derived from theknowledge obtained through the metacognitive, cognitive and motivational CQ.Metacognition, cognition and motivation are referred to mental capabilities andresult in mental functioning, behavioral intelligence attributes to the behavioralcapability to flex motor skills and demonstrate a range of verbal and nonverbalactions

1.3.1 Metacognitive CQ

Metacognitive CQ attributes to the mental capability to acquire andevaluate cultural knowledge The main dimensions of Metacognitive CQ areawareness and monitoring of cognitive processes According to Triandis (2006),persons with high metacognitive CQ have high awareness of how their own

example through cross-cultural training programs During the interaction, theyaudit how their interpretation is in line with intentions of others Triandis callsthese characteristics as isomorphic attributions Heightened awareness and auditlaunch the mental mechanism, responsible for acquiring and understandingknowledge, relating to culture The essential attributes of the mentioned processare self-awareness, other - awareness and situational awareness (Triandis, 2006).

To understand the nature of metacognitive CQ the specific metacognitive regulated mental processes are to be mentioned: planning, awareness andchecking Planning has a strategic basis and is launched before the actualencounter with another culture Drawing of short - term and long term objectivesand creating action plans for specific steps to be taken in specific culturalenvironments are the main characteristics of planning Planning is based onthinking about culture and reflecting what is to be done before the actual action.Planning can be self- reflecting (What can I do to achieve what I want?), relating

self-to others (What might they do self-to achieve what they want?) and engaging bothparties (How might our actions affect what we can achieve in this situation?).Awareness is characterized as knowing about cultural thinking and knowledge ofself and others in real time (Ridley, Schulz, Glanz and Weinstein, 1992) Whileplanning is about accepting consciousness, awareness depicts degree to whichpeople have real-time understanding how culture influences: ● Their own mentalprocesses and behaviors ● The mental processes and behaviors of others inintercultural interactions ● The intercultural situations Awareness implies that aperson is capable to correlate own cultural habits with those of another cultureand postpone some judgment until enough information is accumulated tointerpret intercultural interactions It includes being aware of how culturalaspects of the situation might be influencing personal behavior and the behavior

of others To generalize said above – awareness is the individual’s competence tomake sense of self, others and the specific situation The third sub - dimensionalaspect of the metacognitive CQ is checking, which includes reviewingassumptions and

adjusting mental maps when actual experience is not the same as expectations Ituses the method of comparison between the expected outcome and the actualoutcome of the intercultural communication After checking personal culturalassumption, checking assumptions made about culturally diverse others andchecking interpretations after interaction lead to the communication adjustmentduring the real –life situation All three sub-dimensions of the metacognitive CQprompt a person with high metacognitive CQ to plan ahead, reflect upon thesituation during the actual communication and adjust the behavior accordingly.The timeframe of the three sub-dimensions is to be divided into three stages.Planning happens before the interaction, awareness should be during the wholeprocess from the initial planning until the end of interaction Checking takesplace during and after the communication To summarize above said, it can benoted that sub-dimensions represent an essential component of the metacognitive

CQ, because they target proactive thinking about participants of a situation inintercultural environment (planning), challenging dependence on culturally –bounding habits and thinking (awareness) and adjusting strategies to ensure thatmental models are culturally appropriate and work as an assistance for thesuccessful outcomes in the intercultural encounters (checking)

1.3.2 Cognitive CQ

Cognitive CQ accumulates the general knowledge about cultures andcultural differences Perception of elements that build up the culturalenvironment brings an understanding how the system arranges the patterns ofbehavior and interactions within a culture, and why behaviors and interactionsdiffer across different cultural environments (Ang & Van Dyne, 2008) Thisgeneral knowledge can be subdivided into two main areas, such as: • Culture-general knowledge – informative knowledge of the major elements that

to be effective in that specific environment (Ang and Van Dyne, 2008) Culture–general knowledge is explained as knowledge of the universal elements thatconstitute a cultural environment (Ang, 2008) It gives an importantorganizational framework for thinking about possible ways of comparingdifferent cultures and getting an understanding about similarities and differences.Context-specific knowledge deals with the field of informative knowledge aboutmanifestation of cultural characteristics in a specific environment and theprocedural knowledge how to be effective in that environment An environment

or domain could be related to specific subcultures such as business environment,diplomatic environment, peacekeeping forces, educators or demographicsubgroups based on gender, age and education The individuals working inmulticultural business or diplomatic environment should possess detailed culturalknowledge about the norms and expectations of these subcultures in order toperform effectively Context –specific knowledge is directed to the specificinsider understanding of how to operate in a specific environment, whereasculture –general knowledge refers to a broader comparison across cultures based

on outsider understanding and comparisons (Morris, Kwok, Ames and Lickel,1999)

1.3.3 Motivational CQ

Motivational CQ is explained as a mental capability to monitor and directpower towards performance within intercultural environment in a real problem-solving situation Motivational theories have a different approach towards themoving force of the work-related behavior Some motivational theoriesemphasize the individual characteristics, such as needs, values and traits as thesource of constraints for the work-related behavior Others pay more attention tothe context in with the behavior is expressed, such as job description or thecultural individualities Ang chooses to focus on intrinsic, extrinsic and self-efficacy as sub - dimensions of motivational CQ Intrinsic Interest is defined as

valuing culturally diverse experience in and of itself because it is inherentlysatisfying

(Deci, 1975) The intrinsic satisfaction is gained from the novelty of interculturalinteractions and basic enjoyment of cooperating with people from differentcultural background The fundamental interest in other cultures and working withdiverse groups is also a part of intrinsic interest, which is selfgenerated, comesfrom the inside of a personality and not situation inflicted Extrinsic Interest isdescribed as appreciating the tangible personal benefits that can be derived fromculturally diverse experiences (Ryan& Deci, 2000) This kind of interest isconnected to the satisfaction from the intercultural experience and an enhancedreputation based on the intercultural work experience Self-Efficacy to Adjust is

a capability to use a task-specific confidence in culturally diverse situation, such

as interacting with locals, possessing different cultural background, or beingconfident to operate in the culturally diverse environment Self – Efficacy comesfrom the personal will to get involved in the situation of cultural diversity Peoplewith high motivational CQ are positive about the intercultural interaction as theysee the benefits of the activity and are confident in their capabilities tosuccessfully operate within the situation All three sub - dimensions ofmotivational CQ activate energy that allows a person to perform effectivelywithin the diverse cultural setting even when the situation is difficult

1.3.4 Behavioral CQ

Behavioral CQ works on adjusting behaviors to fit different culturalcontexts Ang identifies the behavioral CQ as an individual’s capability to enact awild repertoire of verbal and nonverbal actions when interacting with peoplefrom different cultures (2009) Behavioral CQ is the way of applying all thethree dimensions of the CQ in a real life situation by using appropriate behavioralways Communication behaviors can be placed into three main categories:verbal, nonverbal and speech acts Verbal Behavior refers to flexibility invocalization A person can adjust his or her behavior by changing the pace ofthe speech, the

amount of warmth or enthusiasm, the use of pauses or silence as in differentcultures they are treated in a different way.

Nonverbal behavior is defined as flexibility in communication by usinggestures, facial expressions and body language Some cultures are moreexpressive in the usage of non-verbal means of communication then the others.The task for a non-local outsider is to learn through the metacognitive CQ theappropriate ways of nonverbal communication and adjust his or her behavioraccordingly A person with high behavioral CQ shows behavioral flexibility inintercultural environment by adjusting the behavior to a new contest To sum upthe mentioned above, the CQ can be defined as “an outsider’s seemingly naturalability to read the message, sent by a stranger, in a correct way, in the same way

as his compatriot will understand” (Early, 2009) The capability of ‘reading themessage’ is a result of interaction of four dimensions of CQ: metacognitive,cognitive, motivational and behavioral

2 International Negotiation

In a recent review of negotiation literature, Max Bazerman and colleagues(Bazerman, Curhan, Moore & Valley, 2000) concluded that cross-culturalnegotiation is a rapidly emerging area They identified two types of research inthe cross-cultural negotiation: one is negotiation within cultures, focusing oncomparing the nature of negotiation within different cultures; and the other isnegotiation across cultures, focusing on intercultural negotiation It is the lattertype which we mainly discuss in the present paper, and we use interculturalnegotiation and international negotiation interchangeably in this paper.International negotiation involves at least two parties who come from differentcultural backgrounds Culture refers to shared norms, roles, belief systems, laws,and values that form meaningful wholes and which are interrelated in functional

difficulties in data collection, so far the empirical studies of internationalnegotiation are quite few.

In this section, perspectives on international business negotiation arereviewed An international business negotiation is defined as the deliberateinteraction of two or more social units (at least one of them a business entity),originating from different nations, that are attempting to define or redefine theirinterdependence in a business matter This includes company-company,company- government, and solely interpersonal interactions over businessmatters such as sales, licensing, joint ventures, and acquisitions (Weiss,1993:270)

Generally, the process of negotiation consists of three different negotiationstages including the pre-, actual negotiation, and post- stages (Ghauri 1996:7).The effective flow of the negotiation process can determine the success of anegotiation

The pre-negotiation stage, which involves the preparation and planning, isthe most important step in negotiation (Ghauri 1996:14) It sets the foundationfor the process negotiating (Lewicki et al 1994) It consists of interactions, such

as building trust and relationships, and the task-related behaviors which focus onthe preferences related to various alternatives (Graham & Sano 1989, Simintiras

& Thomas 1998) In brief, the first stage of negotiation emphasizes getting toknow each other, identifying the issues, and preparing for the negotiationprocess

The negotiation stage involves a face-to-face interaction, methods ofpersuasion, and the use of tactics At this stage negotiators explore thedifferences in preferences and expectations related to developing an agreement

The post-negotiation stage relates to concessions, compromises, evaluatingthe agreement, and following-up

These stages are often done concurrently The negotiation process is adynamic process, involving a variety of factors related to potential negotiation

International business negotiations are typically more complicated anddifficult to assess than the negotiations taking place between negotiators from thesame culture This is because the values of the negotiators are different.Negotiators have unique perspectives on negotiations leading to different styles.Other external influences such as international law, exchange rates, andeconomic growth also increase the complexity of negotiations Internationalbusiness negotiators need to understand each other’s values so that they canadapt their negotiating approaches to emerging situations.

3 Role of Cultural Intelligence in the International Business

Negotiation theories with an emphasis on culture are assessed in thisanalysis Culture consists of patterns, explicit and implicit, of behavior acquiredand transmitted by symbols including their embodiment in artifacts The essentialcore of culture consists of traditional (i.e historically derived and selected) ideasand values Cultural systems may be considered as products of action, or asconditioning further action (Kroeber & Kluckhohn 1952:181)

Culture provides the context for negotiation because it takes place withinthe framework of a culture’s institutions and is influenced by its norms andvalues Culture is a key factor affecting negotiation processes and outcomes(Brett et al.,

1998) According to Salacuse (1998), negotiation practices differ from culture toculture Culture provides the "negotiating style" – the way persons from differentcultures conduct themselves in negotiating activities Culture determines the waypeople perceive and approach the negotiating process They have specificperspectives on power, time, risk, communication, and complexity Individualistnegotiators tend to engage in coercive or competitive behavior, and argumentswhereas collectivist negotiators emphasize relationships and problem solving