INTRODUCTION
Background
In today's globalized world, the ability to adapt to diverse cultural situations is essential for organizations seeking competitive advantage through effective international assignments (Zhang & Dodgson, 2007) As more companies expand their reach from domestic to international markets, the necessity of international business negotiations has become increasingly vital Businesses must engage with customers and suppliers globally to maximize benefits, yet securing contracts remains a challenging endeavor This complexity is heightened for foreign direct investment (FDI) companies, as they navigate negotiations with representatives from various countries, each with distinct cultural backgrounds.
Cultural differences significantly impact the outcomes of international business negotiations, as these negotiations typically involve parties from diverse cultural backgrounds (Angelmar & Stern, 1978; Liu & Liu, 2006) Effective cultural adaptation and communication skills are essential for navigating this complexity (Yamazaki & Kayes, 2004) As negotiators from various countries bring their unique values and observations to the table, challenges inevitably arise This is largely due to the discomfort that cross-cultural interactions can create, as individuals may find that their previously held assumptions are no longer applicable in a different cultural context (Kim).
The sensation of 'losing ground' frequently results in heightened anxiety (Bücker, 2014) Research indicates that cultural intelligence (CQ), defined as an individual's capacity to effectively adapt to diverse cultural environments (Earley and Ang, 2003), can mitigate these feelings.
7 reduce anxiety during intercultural interactions (MacNab, Brislin and Worthley,
2012), as it helps individuals to interpret unfamiliar cultural cues (Brislin et al.,
Effective negotiators play a crucial role at the negotiation table, as their achievements are influenced not only by the advantages of their companies—such as pricing, transportation, and processes—but also by their personal experiences, confidence, and intercultural skills.
The negotiators should be raised more awareness about cultural intelligence and their performance to get the best achievement when they have an international business negotiation
Recent studies have increasingly focused on international negotiation and intercultural contexts, primarily addressing negotiators in developed and developing countries However, there is a notable gap in literature concerning negotiators' performance and cultural intelligence (CQ) in Vietnam, a developing nation that is attracting significant foreign direct investment (FDI) As more global companies invest in Vietnam, their leaders frequently engage in international contracts This paper aims to fill the existing research gap by exploring the relationship between negotiator profiles and their effectiveness in forming international business agreements within Vietnam's FDI sector, thereby expanding on previous findings.
Purpose, research question and scope of the study
International business negotiation is a complexity task, then in this situation each evolved parties always hope about a success negotiation, that is negotiation outcome
The businessman taking part in a business negotiation can be divided into
Having basic knowledge about local culture and communicative experiences
Having basic knowledge about cultural intelligence, however do not know exactly to improve it
Therefore, the result of this research can be developed to 2 trends for 2 types of businessman
This research aims to identify challenges related to cultural intelligence and communication experiences in Thai Nguyen Industrial Zones, ultimately providing actionable solutions and recommendations for business professionals Additionally, the findings will assist universities in developing a relevant curriculum that enhances teaching and learning outcomes.
Research question
To effectively address the problem statement, the author must develop research questions that are instrumental in guiding the inquiry These well-crafted questions are essential, as they lead to accurate and meaningful answers, highlighting the importance of quality questions in the research process.
How do FDI leaderships in Thai Nguyen Industrial Zone understand the role of Cultural Intelligence in business negotiation?
Structure of the study
The research study comprises five chapters, with the first chapter outlining the study's background and providing a general understanding of the issue at hand It justifies the project's relevance and emphasizes the importance of the topic Additionally, this chapter defines the study's objectives and presents the key questions that the author aims to address throughout the research.
Chapter two provides a comprehensive overview of the relevant literature and theoretical frameworks related to the research topics and previous studies in the field It also offers clear explanations and definitions of the key concepts utilized in this study.
Chapter three outlines the methodology and methods employed in this study, detailing the research process, including candidate selection for interviews, participant outreach, and the interview process itself The subsequent chapter four presents the findings, which will be followed by chapter five, where discussions and conclusions are drawn This final chapter connects theoretical insights with empirical data and offers contributions to both existing theoretical frameworks and practical applications in business negotiation.
LITERATURE REVIEW
Cultural intelligence
1.1 Basic definition of culture and intelligence
To understand cultural intelligence and its various dimensions, it is essential to first define culture and intelligence, as well as to explore the rationale behind the development of the cultural intelligence theory.
Geert Hofstede, in his influential work "Culture and Organizations," emphasizes that social systems rely on the predictability of human behavior rather than randomness He asserts that our predictions about behavior must consider both individual characteristics and situational contexts, highlighting the importance of understanding a person's mental framework for accurate behavioral forecasting.
10 programming and the more accurately we know the situation, the more sure our prediction will be.” (1979, P.15)
The term "general intelligence" has evolved from its initial narrow definition as the ability to solve academic problems According to Schmidt and Hunter (2000), general intelligence encompasses the capacity to understand and reason with abstractions, as well as to solve complex problems It goes beyond mere book learning or test-taking skills; instead, it signifies a deeper capability to comprehend and make sense of our environment, effectively "catching on" and determining appropriate actions in various situations.
In today's world, intelligence extends beyond the classroom, encompassing a broader perspective that includes social intelligence, emotional intelligence, and practical intelligence These components collectively enhance general intelligence, making it adaptable and applicable to real-world situations, ultimately leading to what is known as successful intelligence.
According to Robert Sternberg, a professor of Human Development at Cornell and the author of the Diarchic Theory of Human Intelligence, intelligence must be understood, measured, and developed within its cultural context.
Sternberg (1985) defines intelligence as the ability to succeed in life within one’s sociocultural context, emphasizing the importance of personal standards Successful intelligence involves leveraging strengths and addressing weaknesses through adaptive strategies that incorporate analytical, creative, practical, and ethical skills It is crucial for education and society to recognize the cultural and ecological contexts that shape intelligence The concept of "culture" is multifaceted, encompassing both objective elements, such as observable artifacts and practices, and subjective aspects that influence human development, as noted by Triandis (1972).
Human beings have 11 fundamental needs related to food, social interaction, and connection with their environment and the universe (Brown, 1991; Murdock, 1987; Triandis, 1994) Objective culture encompasses knowledge of economic systems (capitalism vs socialism), legal frameworks, political structures, traditional cultural types (matriarchal and patriarchal), and sociolinguistic rules, including language usage and non-verbal communication In contrast, subjective culture reflects the less visible psychological aspects, such as shared values, beliefs, norms, and assumptions within a society While each nation possesses a unique culture, core beliefs and concepts often exhibit similarities across different environments, with variations arising in how members interpret these ideas.
Geert Hofstede defines culture as the "collective programming of the mind" that differentiates groups of people Richard D Lewis elaborates on this concept in "When Cultures Collide," describing collective programming as the transformation of early learned national or regional beliefs into core values that are difficult to change When individuals encounter different belief systems while traveling or interacting with others, they may experience "culture shock," triggered by actions or statements that challenge their own beliefs This confrontation forces individuals to choose between embracing these differences to find common ground or rejecting them, highlighting their level of cultural intelligence.
1.2 The concept of cultural intelligence
Cultural intelligence (CQ), introduced into international business literature by Earley (2002) and Earley & Ang (2003), refers to an individual's ability to adapt successfully to new cultural environments, as defined by Earley et al (2006) Since its inception, various scholars have explored CQ, resulting in a range of definitions and applications Thomas et al (2008) compiled these definitions in a comprehensive table, providing a detailed overview of CQ concepts in business literature, including contributions from non-English speaking scholars.
Despite the growing interest in Cultural Intelligence (CQ), only a limited number of scholars have actively researched this field The framework developed by Earley and Ang remains the most influential in empirical studies, although only a handful of such studies have been conducted to date.
Recent developments have introduced two distinct conceptualizations of Cultural Intelligence (CQ): Thomas's model from 2006 and Plum's models from 2007 and 2008 Consequently, cultural intelligence can be categorized into three main approaches: Earley & Ang's framework, Thomas et al.'s concept, and Plum's interpretation This article will provide a brief overview of the literature surrounding these varying approaches to cultural intelligence.
Earley et al (2006) suggest that the areas of Cultural Intelligence (CQ) are distinct but interrelated, challenging the functionalistic view that separates them For instance, the act of exchanging business cards involves behavioral, motivational, and strategic cultural elements, highlighting the interconnectedness of these areas This perspective supports the idea that understanding CQ as an integrated system may better explain the varying success of individuals in cross-cultural interactions.
Emotional and motivational aspects are crucial for fostering contact and building cultural bridges, as genuine interest and collaboration are necessary for successful outcomes This requires emotional maturity to navigate potentially embarrassing situations during cultural encounters, where one must manage their own and others' emotional reactions It's important to recognize that responses may be culturally influenced and interpreted differently by each party This understanding highlights the interconnectedness of cultural awareness and the need for mental flexibility, as cross-cultural interactions can reshape one's self-perception Therefore, embracing change with a learning attitude, curiosity, and the courage to adapt is essential for meaningful intercultural exchanges.
2008: 237) In order to be able to learn from an unfamiliar cultural context one has
To enhance cross-cultural communication, it is essential to be fully present and attentive to the current situation, as this awareness can help identify signs that indicate necessary improvements Ignoring these signs may lead to misunderstandings and confusion.
The second dimension of Cultural Intelligence (CQ) is referred to as the "knowledge and mental dimension," encompassing cultural self-awareness, an understanding of cultural differences, and the ability to apply experiences from one cultural context to another (Plum, 2008) It emphasizes the need to view oneself and others as cultural beings, acknowledging that culture influences worldviews and behaviors, even if actions remain unpredictable To navigate cultural encounters effectively, one must recognize and appreciate cultural differences without overestimating their impact on misunderstandings, which may also stem from personality traits or other factors Thus, adopting a broader perspective is crucial to avoid exaggerating the significance of cultural disparities (Ibid).
International Negotiation
Max Bazerman and colleagues (2000) highlight that cross-cultural negotiation is a rapidly growing field, distinguishing between negotiation within cultures and negotiation across cultures This paper focuses on the latter, often referred to as intercultural or international negotiation, which involves parties from diverse cultural backgrounds Culture encompasses shared norms, roles, belief systems, laws, and values that are interrelated in meaningful ways (Triandis, 1994) The limited research history in this area underscores the need for further exploration.
22 difficulties in data collection, so far the empirical studies of international negotiation are quite few
This section examines various perspectives on international business negotiation, which is defined as the intentional interaction between two or more social units, at least one being a business entity from different nations, aiming to establish or redefine their interdependence in business contexts This encompasses interactions between companies, between companies and governments, as well as interpersonal dealings related to business activities such as sales, licensing, joint ventures, and acquisitions.
Negotiation typically involves three key stages: pre-negotiation, actual negotiation, and post-negotiation (Ghauri 1996:7) The success of the negotiation largely depends on the effective management of these stages.
The pre-negotiation stage is crucial for successful negotiation, as it involves essential preparation and planning that lays the groundwork for the entire process This stage focuses on building trust and relationships while addressing task-related behaviors that pertain to preferences for various alternatives In essence, it emphasizes understanding each party, identifying key issues, and adequately preparing for the negotiation ahead.
The negotiation stage is characterized by direct interactions where negotiators employ persuasive techniques and various tactics During this phase, they delve into the differing preferences and expectations that are crucial for reaching a mutually beneficial agreement.
The post-negotiation stage relates to concessions, compromises, evaluating the agreement, and following-up
These stages are often done concurrently The negotiation process is a dynamic process, involving a variety of factors related to potential negotiation outcomes
International business negotiations are inherently more complex than those conducted within a single culture due to differing values and perspectives among negotiators These unique viewpoints result in varied negotiation styles, further complicated by external factors such as international law, exchange rates, and economic growth To navigate these challenges effectively, international negotiators must comprehend each other's values and adapt their strategies accordingly to succeed in diverse situations.
Role of Cultural Intelligence in the International Business
This analysis evaluates negotiation theories with a focus on cultural influences, highlighting that culture encompasses both explicit and implicit behavioral patterns acquired through symbols and artifacts At its core, culture is rooted in traditional ideas and values that are historically derived Additionally, cultural systems can be viewed as outcomes of actions or as factors that shape future actions, as noted by Kroeber and Kluckhohn (1952).
Culture plays a crucial role in negotiation, as it shapes the framework of institutions and is influenced by societal norms and values Understanding cultural differences is essential, as they significantly impact both the negotiation process and its outcomes.
Negotiation practices vary significantly across cultures, as highlighted by Salacuse (1998), who emphasizes that culture shapes the "negotiating style" of individuals This cultural influence affects how people perceive and approach negotiations, impacting their views on power, time, risk, communication, and complexity Individualist negotiators often exhibit coercive or competitive behaviors, while collectivist negotiators prioritize relationships and problem-solving (Heydenfeldt, 2000).
This article synthesizes and compares specific theories that highlight the influence of culture on international business negotiations, noting that many existing studies tend to concentrate on only one aspect of the negotiation process.
Cultural differences play a significant role in international business negotiations, affecting how negotiators perceive styles, priorities, processes, and expected outcomes While some universal traits exist, each culture brings its unique approach to negotiations Recognizing these cultural influences is essential for minimizing confusion and misinterpretations Therefore, negotiators must be aware of these differences and prepare accordingly to navigate the complexities of cross-cultural negotiations effectively.
The difficulties when developing Cultural Intelligence
Cultural knowledge encompasses both the content and process of understanding different cultures, including the nuances of expressing disagreements and providing feedback to subordinates.
Cross- cultural skills consist of a broad set of skills instrumental for intercultural effectiveness, specifically:
relational skills; whether you enjoy talking and interacting with people from other cultures
tolerance of uncertainty; whether you are able to tolerate uncertainties, ambiguities and unexpected changes in an intercultural interaction
adaptability; whether you can change your behavior according to the cultural demands
empathy; whether you can put yourself in a culturally different person´s shoes and imagine the situation from his or her perspective
perceptual acuity; whether you understand other people´s feelings and subtle meanings during intercultural interactions
Cultural mindfulness involves understanding and managing one's thoughts and learning processes related to cultural experiences and strategies It signifies an awareness of the cultural context, a conscious analysis of interactive situations, and the ability to strategize actions tailored to various cultural settings.
In order to improve cultural metacognition, you need to practice mental exercises where you are observing others´ behaviors, analyzing situations and reflecting on your own behavior
Observing the other party's actions and reactions in various situations is crucial for assessing whether your behavior has met your objectives This analysis provides valuable insights that inform your next steps.
Reflect on successful as well as unsuccessful intercultural interactions and write down what knowledge and skills you have used during those interactions
Optimizing your learning experience requires a foundation of cultural knowledge and cross-cultural skills By relating to your counterpart and empathizing with their perspective, you can better interpret their behavior and effectively strategize your next steps.
Developing your CQ in these ways will go a long way to ensure that you and your organization are able to nimbly navigate across cultural boundaries
This chapter defines key terms relevant to the study, including Cultural Intelligence (CQ) and international negotiation It also discusses the role of CQ in the negotiation process and addresses the challenges faced when developing Cultural Intelligence.
METHODOLOGY
Research design
This qualitative study utilized interviews and observations as primary research instruments, emphasizing the importance of words over numerical data, as highlighted by Bryman and Bell (2007) The author selected this qualitative approach to effectively explore the research topic.
This article highlights the preference for an inductive approach in understanding the relationship between theory and research, moving away from the traditional practices of the natural scientific model It focuses on the importance of individual experiences and perspectives in shaping research outcomes.
27 interpret their social world; and takes a view on social reality as a constantly shifting emergent property of individuals’ creation”
The chosen method of interviewing in this research provides flexibility in exploring the subject, emphasizing the interviewee's perspective and background, which enriches the understanding of their experiences related to the research topic This qualitative approach allows for a more in-depth insight into the interviewee's views, adapting to their pace and enabling significant new issues to surface during the conversation According to Bryman and Bell (2007), qualitative interviews can be categorized into semi-structured and unstructured types.
Unstructured interview possesses the similarities with a conversation with an outline for main theme (question) to be asked by a researcher
A semi-structured interview involves a set of questions related to a central theme, allowing interviewees the freedom to share their opinions The author utilized a consistent wording approach across multiple interviews, employing an interview guide focused on cultural intelligence The goal was to gain authentic insights into the perspectives of leaders within the international environment who share common attributes.
The research is grounded in secondary literature, primarily sourced from books and journal articles Initially, the author utilized general keywords such as culture, negotiation, international business, cultural intelligence, and cultural differences to gather information online As the study progressed, a more in-depth exploration led the author to leverage references for detailed insights and additional valuable sources.
This thesis will first define the concept of culture, highlighting the various interpretations found in existing literature Additionally, it will clarify the author's understanding of cultural intelligence and examine its significance within the context of the study.
CQ differs from the related concept of cultural intelligence (CQ), which is often seen as an individual trait This thesis aims to enhance Radiometer's cultural intelligence across the organization To support this goal, the theory of Requisite Variety will be introduced, providing insights into how an intelligent organization can be developed.
Culture and its role in organizations
When talking about culture, scholars within the field of management and leadership often turn to the conceptualization of culture as outlined by Hofstede
(1980) or Trompenaars (1993), which is a positivistic approach to culture
Geertz critiques the attempt to quantify culture, arguing that it should not be seen merely as a collection of disconnected elements but rather as a cohesive system He defines culture as "a system of inherited conceptions expressed in symbolic forms," which facilitates communication and the development of knowledge and attitudes towards life.
Culture serves as a framework through which individuals interpret and assign meaning to their experiences It profoundly influences and shapes every person, while simultaneously being shaped by them As Geertz articulates, this reciprocal relationship underscores the dynamic nature of culture in human life.
To fully grasp the meanings assigned to distinctive symbols within a culture, it is essential to go beyond mere recognition of the symbols themselves Understanding requires an interpretation of the intricate web of symbols, which involves isolating individual elements and specifying their relationships and significance within the cultural context.
29 internal relationships among those elements and c) characterizing the whole system in a somewhat more general way (Ibid: 17) Concerning the step of
Geertz emphasizes the importance of understanding the core symbols that organize cultural systems while cautioning against merely arranging abstract concepts into coherent patterns He argues that while coherence is essential for defining systems, it can be an oversimplified measure Cultural theory navigates a conflict between the need for contextual understanding and the necessity for generalization, which requires categorization and structure This thesis views culture as a socially constructed phenomenon resulting from negotiations among social actors, while also acknowledging that some structural elements, aligned with functionalist perspectives, exist within any culture.
The concept of Cultural Intelligence (CQ) is essential for understanding the origins of cross-cultural issues and addressing them effectively By leveraging CQ, partners can collaborate to establish a new common culture, complete with its own structures and dynamics.
In her exploration of Cultural Intelligence (CQ), Plum (2007; 2008) adopts a constructivist perspective on culture, viewing it as a dynamic process rather than a static possession of specific groups or individuals This approach emphasizes that social actions arise from the negotiation among social actors, making them unpredictable Nonetheless, the thesis acknowledges the influence of structure within social groups, including families, highlighting its significance in shaping cultural interactions.
Organizations are viewed as open systems within a constructivist framework, emphasizing that culture is a dynamic process rather than a fixed structure (Kleppestứ, 1993: 54) This perspective highlights that organizations are embedded within their societal contexts, implying that cultural elements of the surrounding society influence the organization Therefore, research on organizations must consider external cultural factors, necessitating a comprehensive understanding of culture As Alvesson (1995: 119) notes, a pragmatic approach to culture that informs managerial actions should acknowledge its complexity, as oversimplification can lead to misunderstandings.
Plum's nuanced perspective on cultural intelligence (CQ) contrasts with the functionalistic approach taken by proponents of related CQ concepts, which may inadequately address the complexities of cultural issues This distinction will be further explored in the subsequent section.
The interview setting and participants
Interviews were conducted during participants' working hours at a location convenient for them, ensuring flexibility in scheduling Adjustments to the interview length or timing were made for four interviews due to urgent meetings All interviews were recorded with the interviewees' consent, and confidentiality regarding the research and their responses was assured Given the diverse national backgrounds of the employees, all interviews were conducted in English.
Based on theory, an interview guide (Appendix I) was prepared As the interviews were semi-structured and lasted twenty minutes, careful attention was
The interview process was structured to ensure comprehensive coverage of all relevant topics while allowing interviewees to express themselves fully To achieve this, the author occasionally shifted subjects to address all necessary areas related to the research question The interview guide prioritized the most pertinent topics, ensuring they were discussed in every interview At the beginning of each session, the author introduced the project and themselves, providing background information aimed at fostering trust and encouraging open dialogue from the interviewees.
This study aims to explore leadership practices within FDI companies in Thai Nguyen, emphasizing the importance of understanding these business organizations The insights and experiences of employees in these companies serve as valuable resources for enhancing the author's knowledge of effective leadership in this specific context.
To enhance the understanding of cross-cultural negotiations, it is beneficial to collect data from a diverse range of negotiators However, due to practical limitations in time and resources, empirical data was only obtained from four negotiators with varied cultural backgrounds and positions This selection of both managers and leaders aligns with scholarly literature on cultural intelligence, which emphasizes the necessity for all employees engaged in cross-cultural interactions to possess a sufficient level of cultural intelligence.
The initial communication occurred through a phone call between the author and a former colleague During this conversation, they agreed that the author would follow up by sending an email to her contact person.
To conduct interviews, consent was obtained from individuals responsible for gathering approvals, emphasizing the importance of daily cross-cultural interactions and agreement to audio recording Each interview was estimated to last around twenty minutes, with a guarantee of confidentiality for the employees' statements Following this protocol, the interviews were successfully arranged.
To address the problem statement effectively, it is essential to develop targeted research questions that will guide the inquiry process Formulating these questions is crucial, as well-structured inquiries lead to meaningful answers and insights By focusing on the right questions, we can ensure that the research yields accurate and relevant results.
The main research question is “How do FDI leaderships in Thai Nguyen Industrial Zone understand about role of Cultural Intelligence in business negotiation?”
Data collection
The qualitative data collection involved semi-structured interviews with four participants, all of whom regularly engage with diverse cultures through their professional roles, living abroad, or personal interactions Each respondent is employed in a global company, highlighting their experiences in multicultural communication.
The interview guide was used as a basis for the data collection and further analysis
The interview consists of three key sections: first, it explores the interviewee's background; second, it delves into general inquiries about leadership and cultural intelligence; and third, it examines the interviewee's personal experiences in applying leadership skills within diverse cultural contexts.
33 culturally diverse environment A separate section of the interview guide was connected to CQ as a leadership skill in multi-cultural working environment.
Data Analysis
In this thesis, 4 participants from Thai Nguyen Industrial Zones were interviewed Concerning the 4 interviewees, all of them hold leader positions in their companies
The author actively sought themes that could either support or contradict the main points of the research questions, as thematic analysis is widely regarded as a prevalent method for qualitative data analysis (Bryman, 2012: 579) Throughout the theme identification process, Ryan and Bernard provided valuable insights.
(2003) advise to look for repetitions, metaphors and analogies, similarities and differences, theory related material
In the analysis, the emphasis on repetition emerged as a key criterion for identifying patterns within the data, allowing for thematic organization For instance, the frequent use of the term 'observe' helped the author establish a theme related to three factors of Cultural Intelligence (CQ) Additionally, other themes were directly connected to the content of the questions posed.
This article explores the significance of cultural intelligence (CQ) in the business negotiation process, focusing on three key areas: the importance of cultural intelligence awareness, the role of CQ in effective leadership, and the challenges faced in international business contexts Understanding these elements is crucial for enhancing negotiation outcomes in diverse cultural settings.
During the interview, the interviewer may ask unlisted questions to gain deeper insights into the respondent's reasoning Following the interviews, we will analyze both the responses and our experiences from the sessions Although the questions are categorized, it's crucial to recognize that responses can span multiple areas.
In this chapter, the author outlines the methodology and design for conducting the study, emphasizing the significance of Cultural Intelligence (CQ) awareness It explores the impact of CQ on leadership and addresses the challenges of implementing CQ in an international business context These themes serve as key categories for interview questions aimed at eliciting insightful responses from participants.
FINDING AND DISCUSSION
Cultural Intelligence: Cultural awareness
All respondents in the interview were university graduates from various majors: Respondent 1 in economics, Respondent 2 in English, Respondent 3 in engineering, and Respondent 4 in IT Each participant possesses a minimum of three years of negotiation experience across different industries.
The analysis of the interviews indicates that the age and educational background of respondents did not significantly influence their business negotiations with foreign companies Despite varying industries, all respondents demonstrated substantial negotiation experience, leading to consistent approaches in their business dealings This suggests that practical experience may outweigh demographic factors in the negotiation process.
All of the participants agree that cultural intelligence is an important element for negotiation success However, they cannot give clearly definition for this term
Cultural Intelligence refers to the ability to effectively navigate and adapt to new cultures, as highlighted by various respondents One individual described it as a means to face new cultural experiences effectively, while another emphasized it as a metric for assessing a person's capacity to embrace new languages and societies Additionally, a respondent noted that the concept was unfamiliar to them but suggested it pertains to one's adaptability in diverse cultural contexts.
Cultural Intelligence refers to an individual's ability to adapt successfully to new cultural environments, as defined by Earley et al (2006) In a recent survey, it became evident that while many respondents are familiar with the term, they struggle to articulate the three key factors of Cultural Intelligence despite having relevant experiences This highlights a gap in understanding the concept among individuals from diverse cultural backgrounds.
Continuing with the next questions about 3 factors of Cultural Intelligence, although they cannot name these 3 factors, they can understand and give examples for these
Intercultural Engagement is a vital component of Cultural Intelligence, as evidenced by the four interviews analyzed A common theme among respondents is the importance of building strong and stable relationships through negotiation with diverse cultures They emphasize fostering a positive atmosphere to enhance both professional and personal connections By striving for a deeper understanding of their counterparts, the respondents aim to deliver substantial value in negotiations and to their companies The analysis reveals that Cultural Engagement significantly influences all aspects of the Business Negotiation Process.
By collecting information about counterparts’ habits, culture, taboo in their culture before getting an official negotiation, all four respondents feel that they can make a positive atmosphere on the table
Intercultural communication, a key component of Cultural Intelligence, can often be complex due to language barriers As noted by Respondent 1, "The language they use can be tricky sometimes," highlighting the potential for misunderstandings To mitigate these challenges, they emphasize the importance of hiring an English translator, demonstrating a proactive approach to enhancing communication across cultures.
According to Brigit Zinzius (2004), hiring translators who can mediate between cultures is crucial in negotiations The significance of non-verbal communication is highlighted, as body language plays a vital role when verbal understanding falters Respondents recognize that observing non-verbal cues can indicate misunderstandings or discomfort during discussions Additionally, they emphasize the importance of ensuring smooth communication to enhance the negotiation process.
The author’s interviews reveal that intercultural communication significantly impacts the business negotiation process for all participants Respondents frequently utilize non-verbal communication to enhance understanding and share information, creating an environment conducive to mutual comprehension This preference arises from previous miscommunications experienced when relying solely on verbal exchanges Additionally, written correspondence often leads to misunderstandings, prompting a stronger inclination towards face-to-face negotiations.
Intercultural Understanding is the third component of Cultural Intelligence, emphasizing the importance of negotiators comprehending their own position, including knowledge and details about the product and the negotiation process This understanding is equally crucial for recognizing the counterpart's perspective during negotiations.
Respondent 2 emphasizes the significance of ensuring mutual understanding in negotiations, stating, “I try to see if the buyer understands what we are talking about, and I often repeat things to make sure of this.” This highlights the necessity of recognizing their own offerings and capabilities Similarly, Respondent 3 notes, “To know the culture of the counterpart is important, because then you can understand them better,” indicating that while they may not fully adapt to cultural differences, they strive to comprehend the counterpart's culture to establish a solid foundation for negotiations The interviews reveal that understanding cultural backgrounds is crucial for successful business negotiations, as all respondents acknowledge its impact on achieving favorable outcomes.
Cultural Intelligence as a skill for effective businessman
Through interviews, th author realize that all respondents know the role of
CQ, however, most of them do not know how to demonstrate CQ, how to make it as a skill to apply on the negotiation table
The theoretical exploration of the three factors of Cultural Intelligence (CQ) highlights key attributes essential for effective Intercultural Engagement, Communication, and Understanding Core leadership skills such as curiosity, observation, processing, and adjustment align with these factors Additionally, the interviews focused on respondents' perceptions of how to develop CQ as a valuable skill.
Respondent 1 emphasizes the necessity of enhancing Cultural Intelligence as a crucial factor for successful negotiations They suggest that learning a new language, exploring different cultures, and engaging with diverse individuals can significantly enrich our understanding By leveraging this knowledge, even small details can create a positive impression on counterparts Meanwhile, the other three respondents acknowledge the importance of Cultural Intelligence in the business context.
39 negotiation, however they said they get this skill from their failures They do not know exactly to set Cultural Intelligence as a skill on negotiation table
Respondent 4 emphasizes that developing Cultural Intelligence (CQ) requires building awareness, adapting behavior, and studying new languages He clearly identifies the essential elements that leaders must focus on to enhance CQ in an intercultural environment.
Culturally intelligent leaders embrace knowledge and cultivate new skills to enhance their success They recognize the importance of understanding the cultural attributes that shape their relationships with counterparts By forming alliances with leaders from diverse cultural backgrounds, they gain valuable perspectives that facilitate meaningful comparisons and foster collaboration.
Effective leaders in FDI companies must be adaptable, adjusting their behavior to fit various situations while maintaining their core leadership style By developing a keen awareness of their environment, they can better assess circumstances Successful global leaders prioritize building relationships with their peers, taking the time to understand their comfort levels and paying attention to both verbal and non-verbal cues.
Effective communication is essential for leaders' success, requiring an understanding of the cultural attributes of their counterparts By adapting their communication style to fit the cultural environment, leaders can enhance their effectiveness This involves using clear language and determining the appropriate amount of information to share to achieve goals Additionally, leaders must consider whether their counterparts' culture favors implicit or explicit communication and pay attention to non-verbal cues.
Many respondents lack an understanding of the importance of enhancing their self-presentation, communication skills, and cultural awareness, as highlighted by Plum (2016) In today's leadership roles, possessing a high IQ and EQ is no longer sufficient; leaders must also cultivate cultural intelligence (CQ) to succeed.
(emotional intelligence), but strong Cultural Intelligence (CQ) is also increasingly regarded as a necessary skill to succeed in today’s global business community.
Challenges of CQ in culturally diverse environment
All respondents acknowledge that Cultural Intelligence (CQ) plays a crucial role in achieving successful outcomes in international negotiations They recognize the challenges presented by today's intercultural environment, viewing these challenges as essential opportunities for growth and improvement.
The profile of a culturally intelligent (CQ) leader is shaped by their attraction to diverse work environments Currently, cultural diversity in the workplace is considered standard, with employers prioritizing job-related skills over geographical or cultural backgrounds.
To bridge the cultural gap, it is essential to identify the similarities among different cultures, as highlighted by Respondent 3 Emphasizing differences often fails to address interpersonal issues effectively Kowske and Anthony support this perspective, suggesting that a focus on commonalities can foster better understanding and relationships.
Leadership competence is perceived similarly among individuals from comparable geographical backgrounds, such as Anglo and Latin American regions (2007) Focusing on commonalities rather than differences can enhance leaders' communication and effectiveness (Cranford & Glover, 2007) By emphasizing shared traits, leaders can foster relationships and bridge cultural gaps prior to discussions.
All respondents concur that individuals with cultural intelligence (CQ) achieve greater success at the negotiation table In today's global environment, the ability to adapt and learn is essential; however, leadership within the Thai Nguyen Industrial Zone has yet to effectively embrace these skills.
As David Livermore states: “A leader’s CQ may easily be the single greatest difference between thriving in the 21st century world and becoming obsolete.”, it
41 is an opportunity, also is a challenge to the leadership in Thai Nguyen Industrial Zone
To enhance Cultural Intelligence (CQ), leaders should focus on three key factors: intercultural engagement, intercultural communication, and cultural awareness Effective strategies for improving CQ include investing in cross-cultural training, reading culturally immersive literature such as "The Kite Runner" or "Man Gone Down," and having lunch with colleagues from diverse backgrounds to discuss leadership differences across cultures, as suggested by David Livermore.
CONCLUSIONS
Recommendations
In today's global marketplace, companies aiming for international success must grasp the beliefs and values that shape their own business practices while also recognizing the cultural nuances of other nations This understanding is essential to avoid cultural missteps and effectively navigate both organizational and national cultures.
Cultural differences significantly impact international business negotiations, as individuals from diverse backgrounds may not share the same fundamental assumptions This disparity can influence trust levels between negotiating parties, their attitudes towards one another, and their negotiation tactics and flexibility.
The Human Resources department plays a crucial role in a company's development by selecting qualified candidates for key positions In preparation for negotiations, companies must consider the cultural aspects of the other party, as cultural differences significantly impact international business Among these cultural elements, language stands out as a critical factor influencing communication and business interactions across borders.
Limitation
The limited scale and scope of this study restrict its findings to the Thai Nguyen Industrial Zone, making it challenging to generalize conclusions to other industrial zones with foreign direct investment (FDI) companies engaged in international business Additionally, the inability to gather representative data from leadership involved in negotiations with international customers further constrains the evaluation Therefore, further research is recommended to gain a deeper understanding of the significance of cultural intelligence (CQ) and communicative experience in business negotiations within an intercultural context.
The qualitative interviews done in this research is limited to a few individuals in Thai Nguyen Industrial Zone that are working as negotiators for individual companies
The research focuses primarily on cultural intelligence and its four dimensions, intentionally narrowing its scope As a result, various theories related to culture and leadership were not examined, as they offered a wide array of interpretations that did not align with the research objectives.
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Cultural intelligence (CQ) is a critical competency that enhances individuals' ability to navigate diverse cultural environments effectively Plum (2007) emphasizes the importance of understanding cultural intelligence within various contexts, while Thomas et al (2008) provide a comprehensive assessment of CQ, outlining its domains and significance in cross-cultural management Their research highlights how cultural intelligence can improve interpersonal interactions and foster collaboration in multicultural settings, making it essential for global leaders and organizations aiming for success in today's interconnected world.
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