A Comparative Analysis of Cross-Cultural Negotiations between Western and Asian Cultures: A Focus on Italy and China

This thesis aims to investigate how cultural values impact negotiation and how this then affects behaviours. This thesis will use Italian and Chinese university students who will represent Western and Asian cultural frameworks. Established intercultural theories such as Hofstede’s cultural dimensions, Hall’s high- and low-context communication theory and Trompenaars’ value orientation will guide this thesis. It will help with looking at how individualism, power distance, uncertainty avoidance and communication styles are shown in negotiations. An experimental negotiation simulation was conducted with 14 participants in 7 culturally homogeneous pairs. Each pair negotiated in an anonymous, role-based exercise where they had asymmetric payoffs that were related to shared building renovations. The design allowed for a quantitative analysis of negotiation outcomes, such as profit distribution, agreement time, and efficiency. It also allowed for a qualitative analysis of behavioural patterns such as their communication style, emotional expression, trust-building, and concessions. The findings of this thesis can add to cross-cultural negotiation literature by providing evidence of cultural impacts on negotiation behaviours, especially among the younger generations that are increasingly involved in international scenarios. The practical implications seen throughout the thesis highlight the importance of cultural awareness, flexibility and intercultural competence in global negotiations