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Paying a price: culture, trust, and negotiation consequences
Brian C Gunia1, Jeanne M Brett, Amit K Nandkeolyar
1Kellogg School of Management, Northwestern University, 2001 Sheridan Road, Evanston, IL 60208, USA.
The Journal of Applied Psychology
|December 22, 2010
Summary
Cultural differences impact negotiation strategies. Indian negotiators
Area of Science:
- Cross-cultural psychology
- Negotiation theory
- Behavioral economics
Background:
- Cultural norms significantly shape interpersonal trust.
- Trust dynamics are crucial in negotiation outcomes.
- Understanding cultural variations in trust is key to effective negotiation.
Purpose of the Study:
- To investigate cultural differences in trust between Indian and American negotiators.
- To examine how these trust differences influence negotiation strategies and outcomes.
- To test a theoretical model linking culture, trust, strategy, and negotiation success.
Main Methods:
- Three studies were conducted: a survey, a negotiation simulation, and a replication with independent coding.
- Data collection involved self-reported trust and strategy, negotiation insights, and joint gains.
- Negotiation strategies were analyzed using both self-reports and independent coding for robust inference.
Main Results:
- Indian negotiators reported lower trust in counterparts compared to American negotiators.
- Lower interpersonal trust among Indian negotiators was associated with less effective negotiation strategies and poorer outcomes (reduced insights and joint gains).
- Results were consistent across simulation and independently coded data, supporting causal links.
Conclusions:
- Cultural differences in interpersonal trust significantly influence negotiation strategies and outcomes.
- The findings support an expanded theoretical model of negotiation, highlighting the interplay of culture, trust, strategy, and economic results.
- Interventions aimed at increasing trust may improve negotiation effectiveness across cultures.
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