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Avoiding Cross-Cultural Misunderstandings
Manuela Reintgen Business Development Associate Dezan Shira & Associates
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Agenda The Experiment Cultural Dimensions Potential Conflict Factors
Specific Characteristics Where to adopt this knowledge?
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The Experiment Two groups: 5 Chinese vs. 5 Germans
Ph.D. candidates/Young professionals Pretest: One strong negotiating position 600 Yuan guaranteed return One weak negotiating position 150 Yuan guaranteed return Task: Divide additional Yuan Amount only available if they form a consensus
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Cultural Dimensions (Geert Hofstede)
Small vs. Large Power Distance Individualism vs. Collectivism Masculinity vs. Femininity Weak vs. Strong Uncertainty Avoidance Long vs. Short Term Orientation By Yang Liu
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Cultural Dimensions (Geert Hofstede)
Small vs. Large Power Distance By Yang Liu
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Cultural Dimensions (Geert Hofstede)
Individualism vs. Collectivism By Yang Liu
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Cultural Dimensions (Geert Hofstede)
Masculinity vs. Femininity
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Cultural Dimensions (Geert Hofstede)
Weak vs. Strong Uncertainty Avoidance By Yang Liu
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Cultural Dimensions (Geert Hofstede)
Long vs. Short Term Orientation vs.
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Potential Conflict Factors
Time China US/Europe Polychrome time perception Monochrome time perception Negotiation as a long-term process “Don’t care if they are in time or not” Focus on short-term success “Time is money”
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Potential Conflict Factors
Relations China US/Europe No differentiation between business and private life “Don’t mix business with private life” Character of business partner really important Try to focus only on business
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Potential Conflict Factors
Dealing with Conflicts China US/Europe Want to “ensure Harmony” “Confrontational” Counterpart Reaction: Lack of understanding & Provocation Retraction
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Specific Characteristics
Chinese Group Discussion leader at beginning = Leader during negotiations Phenomenon of hierarchy Strategy without considering the nationality of the opponents Clear allocation of roles Try to communicate on personal level Veiling of own opinion/plan Postpone important parts to the end Interested in long-term relation
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Where to adopt this knowledge?
Agent/Local Distributor Freelancer Representative Office Wholly Foreign Owned Enterprise Joint Venture
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Joint Venture Typical Use:
Can engage in special manufacturing, processing & assembling, services & consulting and/or trade Advantage Disadvantage Able to enter a restricted market Same bed, different dreams New network or sales channels Contract negotiation time-consuming & eventually expensive
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Dezan Shira & Associates
The Asian Practice 19 years in China 10 Offices in China, 5 Offices in India, 2 Offices in Vietnam 2000 clients from 81 countries Provide business incorporation, tax & accounting, legal and HR services
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Publications Magazine Website Books
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THANK YOU FOR YOUR ATTENTION!
Discussion Mob: THANK YOU FOR YOUR ATTENTION!
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