Introduction
Different societies have common cognitive styles that influence the business practices, thinking patterns, and the perception that characterizes their nationwide cultures. China is essentially a diverse nation. The Chinese culture differs significantly from the Western culture. As a matter of fact, the Chinese culture is a collectivist culture while the Western culture is an individualistic culture. The Chinese people value unity. Confucianism, which is the basis of the traditional Chinese culture, is a vital source of their unity. Ideally, Confucianism centers on the notion of harmonious relationships. It is important to note that Confucianism affects the Chinese business practices including the negotiation strategies.
Pranee (2009) asserts that the Chinese businesses are normally linked to families. In essence, the basis of the Chinese organizations including the business enterprises is the family. The Chinese businesses are directed by the family, have lasting family responsibilities and roles, are financed by the family, which is also accountable, and have a dominant family head. According to Pranee (2009), the traditional Chinese business family is led by those who established it. He further claims that the original family continues controlling the Chinese business family even after becoming public. Chen (2003) claims that either a matriarch, a patriarch, or his/her direct descendants head the Chinese business family. Consequently, unlike the Western businesses where the decision-making is formal, the decision-making in the Chinese business family is informal. Family and friends are the sources of financing for the Chinese businesses. The workers in these businesses are assessed informally. The financial information in the Chinese businesses is essentially kept confidential. The Chinese business family pass from a certain generation to the other (Pranee, 2009). A dominant family head leads these businesses. The family members are recruited as senior managers of the Chinese businesses.
The Chinese usually negotiate as a team. The Chinese culture is a collectivist culture that values interpersonal relationships. Thus, they negotiate as a group of individuals. It is not easy to identify the group decision-maker when negotiating with them. Pranee (2009) maintains that the Chinese frequently utilize the external professional negotiators. Consequently, it is not possible to negotiate with a Chinese as an individual. Most of them hire negotiators to negotiate on their behalf.
In conclusion, the Chinese business practices are deep rooted in their culture. The central values of communalism, as well as Confucianism, continue influencing the Chinese business negotiators. It is, thus, imperative for the Western negotiators to understand the negotiation strategies of these people as described above so as to succeed in doing business with them.
References
Chen, M. J. (2003). Inside Chinese business: A guide for managers worldwide. Harvard Business Press.
Pranee, C. (2009). Impact of Chinese Cultural Development and Negotiation Strategies, FDI, Competitiveness, China International Business Growth, and Management Practice. International Journal of Organizational Innovation (Online), 2(1), 13-40.
Sebenius, J. K., & Qian, J. (2008). Cultural notes on Chinese negotiating behavior. Cambridge, MA: Harvard Business School.
