Author(s): Yu-Te Tu, Chia-Yang Lin, Massoud Moslehpour, Ranfeng Qiu,
Despite the implied enthusiasm for increasing global interaction and economic exchange, a lack of understanding of cultural differences has been found to hinder the ability of firms to conduct business or negotiations efficiently with different countries. By means of a thorough examination of the different styles of negotiation between Taiwan and the US, the research herein identifies the effects of culture on negotiations. The approach uses Casse and Deols’ model, which considers styles of negotiation and degrees of individualism to be the dependent and independent variables. Data was collected from sales and purchasing managers of public companies listed on the stock exchanges of Taipei and New York by means of an online survey. Structural equation modeling was used to test hypothesized models and the overall hypotheses of the research. A two-step approach was employed in the research that consisted of exploratory factor analysis and confirmatory factor analysis. The findings showed that an individualist attitude directly affects the style of negotiation, that nationality is a moderated variant of individualist attitude and style of negotiation, and that different styles of negotiation are preferred by Taiwanese and American negotiators. These findings could be useful in the application of a specific set of values and attitudes that directly relate to regional cultural attributes. The study may also assist prospective cross-cultural negotiators to develop better negotiation skills by providing insights into the nuances of international negotiations between businesses.