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The Influence of National Culture on Business Negotiations Essay

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Updated: Jun 9th, 2021

Companies that enter new markets usually encounter situations when they need to operate within the globalized environment. Some organizations also tend to collaborate and partner with other firms worldwide. To be successful in the international business environment and establish strong partnerships, companies ought to be culturally competent. Thus, the comparison of British and Italian cultures in terms of business negotiations along with management transformations in global organizations will be reviewed.

Great Britain is a great country with a rich history that has shaped its culture and business negotiation style. As a rule, individuals do not spend much time on the preparation for negotiations in this country. They prefer to get acquainted with general information about the subject of the meeting and stay flexible during a conversation. Thus, British people “can easily tolerate uncertainty and find it easy to change plans” (Haffar & Perez, 2015, p. 2796).

Furthermore, Britain is characterized as an individualistic society where personal interests have high value. Therefore, British organizations usually select one person to be in charge of decision-making during negotiations. Another characteristic feature of British business culture is that people are always eager to innovate and upgrade something without spending too much time on the decision-making process. They also consider long-term benefits rather than short-term ones (Haffar & Perez, 2015). Thus, British people value time and prefer planning everything in advance.

Italy is another great European country with rich heritage and manifold culture. In contrast to British people, Italians have a different climate, mindset, and style of life. Subsequently, all these things influence the way people negotiate in business spheres. Unlike British, Italians prefer collectivism to individualism, where bigger negotiating teams are evident and every opinion is considered (Haffar & Perez, 2015).

Furthermore, Italy has a large proportion of family-owned businesses handed down to forthcoming generations. Each family has its own style of doing business, but bureaucracy makes them comply with changing regulatory enforcements based on which it is necessary to manage invoices, production, personnel, and other aspects. (Glover & Gibson, 2017). However, Italians are not likely to accept innovations easily and take risks. This makes their style of negotiations different compared to British people. The culture of collectivism in Italy results in the longer time needed for the decision-making process and a rejection of innovative approaches.

With each coming year, the companies get acquainted with the global market more closely. Thus, managers need to realize that doing business outside their own country is not the same as inland. Understanding cultural, religious, political, economic, and legislative differences may benefit businesses that operate globally. Undoubtedly, leaders also need to consider a great impact of culture on the management of the global organization.

They ought to create a favorable climate inside the corporation and build a common system of beliefs, values, and acceptable behaviors. Deliberate management and leadership within the multicultural team may significantly increase organizational performance (Hao & Yazdanifard, 2015). This principle is related not only to the differences in national cultures but tolerance towards racial, sexual, and ethnic minorities. When there is a common system of values and beliefs in the multicultural or international team, the risk of tensions and conflicts is significantly decreased.

Previously, businesses were evolving and operating inland, but new opportunities allowed entering the global market. Nevertheless, national cultures have a great impact on the style of negotiations and the way of doing business. When operating globally and establishing partnerships with foreign organizations, companies need to consider basic features of doing business in the country of interest. Furthermore, deliberate leadership is essential in guiding and developing a multicultural team effectively.

References

Glover, S., & Gibson, K. (2017). Made in Italy; how culture and history has shaped modern Italian business environment, political landscape, and professional organizations. Journal of Business Diversity, 17(1), 21-28.

Haffar, M., & Perez, L. (2015). The influence of national culture on business negotiations: An exploratory study of Venezuelan and British managers. International Journal of Industrial and Systems Engineering, 9(8), 2794-2802.

Hao, M. J., & Yazdanifard, R. (2015). How effective leadership can facilitate change in organizations through improvement and innovation. Global Journal of Management and Business Research, 15(9), 1-6.

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IvyPanda. 2021. "The Influence of National Culture on Business Negotiations." June 9, 2021. https://ivypanda.com/essays/the-influence-of-national-culture-on-business-negotiations/.

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IvyPanda. (2021) 'The Influence of National Culture on Business Negotiations'. 9 June.

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