Cross-Cultural Negotiation Styles in Finance

This thesis examines the cross-cultural differences in negotiation styles between financial services firms in China and the UK. It highlights how cultural factors influence negotiation approaches, emphasizing the need for understanding these differences to enhance international business interactions. The study employs a descriptive research design, utilizing secondary data to analyze negotiation styles and their implications for business practices. Key findings reveal significant contrasts in negotiation strategies, with recommendations for practitioners to navigate these cultural nuances effectively.

Running head: MANAGEMENT OF PROJECT
A cross-cultural comparison of international business negotiation styles in China and the UK
Name of the Student
Name of the University
Author’s Note

1MANAGEMENT OF PROJECT
Abstract
The study focused on conducting a cross cultural comparison of the international business
negotiation styles adopted by financial sector firms in China and the UK. The study was guided
by objectives such as the establishment of the influence of culture on negotiation styles, the
evaluation of the different negotiation styles adopted by the firms in the UK and China, and the
evaluation of the differences and similarities of the negotiation styles of the UK and Chinese
firms operating in the financial services sector. The study employed the use of a descriptive
research design in order to evaluate these issues in a comprehensive manner. The data was
collected through secondary sources and data analysis was carried out through the use of content
analysis. The study reveals that culture influences negotiation styles in a significant manner and
concludes that the negotiation styles of the UK and Chinese firms operating in the financial
services sector differ significantly due to the differences in the cultures of the two countries.

2MANAGEMENT OF PROJECT
Table of Contents
Abstract............................................................................................................................................1
Chapter One: Introduction...............................................................................................................4
1.1 Overview of the Topic......................................................................................................4
1.2 Problem Statement............................................................................................................6
1.3 Aim and Objectives...........................................................................................................8
1.4 Research Questions...........................................................................................................8
1.5 Relevance of the Study.....................................................................................................9
1.6 Scope and Limitations of the Study..................................................................................9
1.7 Dissertation Structure and Contents..................................................................................9
Chapter Two: Research Methodology...........................................................................................10
2.1 Introduction.....................................................................................................................10
2.2 Research Philosophy.......................................................................................................10
2.3 Research Approach.........................................................................................................12
2.4 Research Choices............................................................................................................15
2.5 Research Strategy............................................................................................................18
2.6 Target Population............................................................................................................19
2.7 Data Collection Procedures.............................................................................................20
2.8 Data Analysis..................................................................................................................21
2.9 Ethical considerations.....................................................................................................21

3MANAGEMENT OF PROJECT
Chapter Three: Literature Review.................................................................................................23
3.1 Introduction.....................................................................................................................23
3.2 Theoretical Review.........................................................................................................23
3.2.1 Culture in International Business Context...............................................................23
2.2.2 Hofstede’s Cultural Dimensions Theory.................................................................25
3.2.3 Hall’s Cultural Dimensions.....................................................................................29
3.2.4 Business Negotiation Styles....................................................................................34
3.2.5 Culture and Business Negotiations..........................................................................36
3.2.6 Financial Services Sectors in China and UK...........................................................37
Chapter Four: Data Analysis and Findings....................................................................................39
4.1 Introduction.....................................................................................................................39
4.2 Business Negotiating Styles of UK and China Financial Services Institutions?............40
4.3 Similarities and Differences in the Negotiation Process of Chinese and UK People.....44
4.4 Influence of Culture on Negotiation Styles.....................................................................46
Chapter Five：Conclusions and Recommendations.......................................................................48
5.1 Introduction.....................................................................................................................48
5.2 Conclusions of the Study................................................................................................50
5.3 Recommendations of the Study......................................................................................51
5.4 Objective linking:................................................................................................................52

4MANAGEMENT OF PROJECT
5.4 Future scope of the study.....................................................................................................55
References......................................................................................................................................57

5MANAGEMENT OF PROJECT
Chapter One: Introduction
1.1 Overview of the Topic
According to Shi and Wang (2011), today, businesses continue to expand their operations to
international locations as a result of the modernisation of the business environment due to the
continued spread of globalisation and technology. Martin and Nakayama (2013) notes that this
need to expand operations to international locations has resulted in the need for organisations to
engage in negotiations with foreign business partners, and this has therefore increased the
importance of the cultural aspect of business negotiations in terms of how it impacts the styles of
negotiations. Soriano (2014) also points out that there is need for the management of
multinational companies to understand that there exist cultural differences between different
countries, and thus have the necessary skills and competence to interact and negotiate with such
business partners. According to Martin and Nakayama (2013) some of the common scenarios of
negotiations include during mergers or acquisitions, during the search and selection of
appropriate suppliers, sourcing of funds for particular projects, as well as the negotiations for the
terms under which a particular project should be implemented. This ensures that the organisation
is able to achieve the best terms and thus give them an advantage when it comes to the
achievement of their internationalisation goals. Soriano (2011) further adds that this is due to the
fact that these cultural differences also lead to different styles of negotiations and this can affect
the multinational businesses if they do not learn the cultural practices of the host countries as
well as the negotiation styles in the new country.
In a study carried out by Liu and Wilson (2011), it was revealed that there are major differences
in terms of the cultures of different countries as was identified by Hofstede (2001) in his cultural
studies, and this can affect the business negotiation styles of managers in each of the countries.

6MANAGEMENT OF PROJECT
Further, the study reveals that since business negotiations are critical when it comes to the
establishment of businesses in foreign locations through the use of the different entry modes such
as mergers and acquisitions, it is important for the managers to accord this aspect a lot of
importance as a clear understanding of the same will increase their chances of getting out of
negotiations having achieved their objectives. Martin and Nakayama (2013) also support this
idea and note that most of the conflicts that occur in international business particularly when it
comes to business negotiations are usually linked to the ignorance and inconsideration of the
cultural differences that exist among the parties to the negotiations as a result of their different
country and cultural backgrounds.
Further, Imai and Gelfand (2010), also add that the global business environment is characterised
by a situation where the lack of knowledge of the cultural differences that exist between different
countries by the managers is likely to lead to negative impacts in their international negotiations.
This can lead to the inability of a business to achieve the goals of their internationalisation as
well as the overall goals of the business. Liu and Wilson (2011) therefore argue that it is
important for the management of multinational corporations to understand the cultural
differences between their country and the host country so as to ensure they can communicate in
an effective manner when it comes to engaging in the various negotiations, and this plays a
critical role in reducing the level of conflict that may arise in such situations.
Lick and Hoo (2016) also argued that all businesses even local ones go through the process of
negotiating whether with partners, customers, or suppliers of domestic companies during their
development and expansion process in the international environment. This therefore raises the
issue of the need for a clear understanding of the different styles of negotiations and the role that
the cultural differences play in the same. In a study carried out by Gunia et al. (2012), it was

7MANAGEMENT OF PROJECT
revealed that a clear understanding of the cultural differences and their influence on negotiation
styles plays a critical role in ensuring that the business managers emerge with the best results or
terms in the negotiations.
1.2 Problem Statement
International business is usually concerned with the carrying out of business activities across
national borders through the various forms which can involve exporting or producing in the
foreign country. Yu and Heng (2011) reveal that such business activities brings about a cross
cultural environment in the business and this may affect the operations of the business in a
negative manner in case where it is not effectively managed. One of the challenges that
management and employees in such organisations usually face is in the form of communication
since this is usually affected in a significant manner by the cultural differences. In this regard,
Przytuła, et al. (2015) note that it is important for the management of organisations to understand
the differences in communication patterns in different cultures, for example when it comes to the
negotiation styles as this might help them carry out these crucial activities in an effective
manner, leading to the achievement of the goals and objectives of the internalisation process.
Further, the managers of companies, projects, or businesses that have operations in more than
one country usually tend to find themselves in a situation where they meet partners with different
negotiation styles due to their cross cultural backgrounds. In such cases, the success of the
management in executing their duties is largely dependent on their ability to understand these
differences and put them into consideration during the negotiation process. According to Jiang
(2013), the different negotiation styles exhibited by different individuals in different countries
are mainly as a result of the cultural differences that exist in the different countries, and the
implication is that each different culture has a different negotiation style among its people.

8MANAGEMENT OF PROJECT
Akgunes et al (2012) points out that the financial services sector in the UK and in China is made
up of large multinational companies due to the integration of the global financial system this
means that they have to engage in negotiations before being able to develop strategic alliances
with local partners.
A search for empirical literature on the different business negotiation styles in China and UK as
well as generally due to cultural differences reveals that there has been a number of studies that
can be useful in this study. For example, Tu (2015), carried out a study that sought to investigate
the differences in the negotiation styles among the BRIC member countries as well as the
challenges that usually arise when it comes to cross cultural business negotiations. The study
also concentrated on evaluating the different cultural aspects that play a critical role in
influencing both communication styles and negotiations styles. Another study carried out by
Guang and Trotter (2012) focused on the evaluation of the influence that culture has on
communication patterns in the context of international business, and went further to focus on the
negotiation styles. The study noted that these cultural differences are critical when it comes to
understanding negotiation styles, and this is a major requirement for the managers of
multinational corporations since it helps them to succeed in their activities. As noted, there have
been multiple studies in this area such as Guang and Trotter (2012), and Tu (2015), although
literature reveals that there is scanty literature in as far as the comparison of the differences in
negotiation styles of firms in the financial services sector in China and UK are concerned. This is
the gap that this study seeks to fill. This study therefore seeks to establish the negotiation
differences that exist between the UK and China

9MANAGEMENT OF PROJECT
1.3 Aim and Objectives
This study focuses on evaluating the influence that culture has on the negotiation styles in
business and thus seeks to carry out a comparison of the negotiation styles adopted by UK and
Chinese managers of firms operating in the financial services sector. This is carried out through
evaluating the two cultures through the use of the available cultural models and frameworks such
as Hofstede’s, Hall’s and Trompenaars’ with the aim being to evaluate the differences and how
they affect the negotiation styles.
In order to achieve this, the study will be guided by the following research objectives
1. To establish the various business negotiating styles of UK and China financial services?
2. To evaluate the major similarities and differences among business negotiation styles of
UK and China financial services?
3. To investigate the impact of cultural differences on the business negotiation styles of the
UK and Chinese financial services?
1.4 Research Questions
The study will seek to answer the following research questions
4. Which are the various business negotiating styles of UK and China financial services?
5. What are the major similarities and differences among business negotiation styles of UK
and China financial services?
6. What is the impact of cultural differences on the business negotiation styles of the UK
and Chinese financial services?

10MANAGEMENT OF PROJECT
1.5 Relevance of the Study
This study will be of benefit to different categories of people such as scholars, practitioners, as
well as business managers. First, the study will provide critical information that can be used by
the managers of different multinational corporations where they will get information related to
the cultural influences on business negotiation styles and thus help them avoid any conflicts
during such negotiations. Further, the results of the study will add to the body of literature of
cross cultural business and communication styles since these are the concepts that will be
explored in the study. Finally, academics and other researchers can use this information to carry
out further studies in the area.
1.6 Scope and Limitations of the Study
This study will seek to evaluate issues related to cross cultural differences between the UK and
China, as well as the effects that these differences have on the negotiation styles. The study will
focus on the cultures of the two countries so as to identify the differences, and on the firms
operating in the business organizations of the two countries so as to establish the differences in
the negotiation styles.
1.7 Dissertation Structure and Contents
The study will be structured based on different chapters which are usually determined by the
content in terms of what each chapter aims to achieve. The first chapter presents the introduction
and background information about the concepts being studied and the objectives that the study
seeks to meet. The next chapter presents the literature review of the concepts from different
sources, which is then followed by the research methodology, analysis of data and its
presentation, and finally the conclusions and recommendations.

11MANAGEMENT OF PROJECT
Chapter Two: Research Methodology
2.1 Introduction
This is the third chapter in the dissertation and is commonly employed to present the research
methods that are required so as to ensure that the study is carried out in an appropriate and
methodological manner which can be applied by another research to obtain similar results. This
chapter is considered critical for the purpose it plays in helping the researcher to present the
various steps that they intend to make use of in their study so as to achieve the objectives that
they set out to from the beginning. Further, it helps to conduct the research process in an
effective manner such that the study obtains valid conclusion and recommendations based on the
research problem. Kothari (2006) indicates that the different steps presented in the methods
chapter is usually necessary when it comes to the execution of the research process since it is
referred to as the basic framework or the basis of the methods that the researcher applies in each
of the steps of the research process. For example, the methodology adopted is considered
important in determining the methods to use in the process of collecting data, those to use when
it comes to the process of determining the population of the study as well as the exact sample of
the study, as well as determining the methods to use when it comes to the analysis of the
collected data and the presentation of the results. This chapter therefore contains explanations of
the methods to be used by the researcher in each step.
2.2 Research Philosophy
Saunders et al (2007) indicates that this is the largest element of the methodology since the
determination of the specific philosophy to use is critical when it comes to the selection of the
rest of the methods. They further describe the philosophy as a term used in the description of the

12MANAGEMENT OF PROJECT
set of beliefs about the knowledge or school of thought of what is actually being studied as they
are viewed in real life. Bryman (2012), points out that a research philosophy determines the way
in which the researcher will structure the knowledge they are trying to evaluate in their study.
Positivism and pragmatism are the two main research philosophies and these are usually based
on different assumptions when it comes to dealing with knowledge, leading to the application of
different methods for different steps in the research process. Further, Flick (2011) notes that the
main differences are significant and the selection of a specific philosophy is determined by the
concepts that the study is attempting to evaluate. Additionally, it is argued by Goddard and
Melville (2004) that these differences should not be viewed as being the opposite of each other
and the choice of philosophy is usually determined by the type of knowledge that is generally
being studied. The indication is that a clear understanding of the two philosophies is considered
valuable to a researcher since this allows them to select the most appropriate way of studying the
different concepts in the study.
Saunders et al. (2007) also continue to explain that there are two main philosophies that
researchers in the social sciences can make use of in their studies and these are the positivism
philosophy and the constructionism or pragmatic philosophy. These are also usually explained in
different ways and it is common to find some researchers describing it as the empiricism and
interpretivism. Kothari (2006) adds that the positivism research philosophy is usually related to
reality such as that it describes the way in which reality is an independent aspect from what the
study is about, and thus should be treated independently. In terms of its practical use in a
research study, Bryman (2012) notes that researchers assume that the phenomena being studied
is consistent across several disciplines and thus does not change based on the body of
knowledge. In contrast, the constructivist approach is usually related to the idea that the meaning

13MANAGEMENT OF PROJECT
of any social phenomena is usually based on the perspective of the people that are observing it,
and thus it is different in the case of each group. Saunders et al (2007) reveal that based on each
the arguments of this philosophy, a phenomenon is observed and interpreted in different ways by
different observers and this therefore means that it is used in studies that seek to establish
differences in observations of certain phenomena by different groups of people.
Bryman (2012) argues that despite these differences between the two philosophies, it is not in
every case that they lead to the researcher selecting the same philosophy when discussing or
evaluating similar issues. This is due to the fact that no philosophy is considered to be better than
the other and thus the researcher can select any of the two although some researchers tend to
favour one in place of the other. Further, Saunders et al (2007), indicate that the main use of a
philosophy is to provide justifications for the methods used in the entire methodology of a study.
It is noted that the concepts of the study play a major role when it comes to determining the type
of philosophy to be used in the study. As a result, the researcher feels that the pragmatic research
approach is appropriate for this particular study and this is due to the fact that it will be
evaluating two different cultures and that is that of the UK and that of China.
2.3 Research Approach
This is also another major part of the research methodology particularly when it comes to the
social sciences as Saunders et al (2007) reveal that there are two main approaches and these are
the inductive approach and the deductive approach. They proceed to describe the deductive
approach as being characterised by the development of hypotheses around an already developed
theory and the main idea therefore is to try and test the fit of the theory in describing the different
concepts. Further, Silverman (2013) argues that the deductive approach is commonly used by
researchers where the study seeks to examine the nature of an observed phenomena and whether

14MANAGEMENT OF PROJECT
it behaves as is expected based on the theory or based on previous results of studies that have
already been carried out on the same concepts. Kothari (2006) notes that the deductive approach
is commonly used in conjunction with the positivist or pragmatic research philosophy and this is
mainly due to the fact that it allows the researcher to formulate and test an hypotheses. This
means that the researcher employs different statistical tests to establish whether the concepts and
the hypotheses are true and to what extent they can be proved.
Saunders et al (2007) proceed and note that the deductive approach is also commonly associated
with studies that focus on the use of qualitative methods and techniques. In such cases, the
researcher forms the expectations or hypotheses based on the review of past studies in the area so
as to make it possible to know what to expect. The way in which the hypothesis is tested is not
the way in which it is tested since this involves statistical methods. In addition, Kothari (2006)
points out that this approach is also used when one seeks to develop concepts from the larger
knowledge area to the specific one. The indication here is that the researcher first seeks to
establish the general theory that describes the concepts being studied, and then proceed to
establishing and testing the specific knowledge about the concepts so as to allow for the
comparison of the results of the specific knowledge with those of the general theory.
On the contrary, according to Saunders et al (2007), the inductive approach is considered to be
opposite of the deductive approach, and this therefore means that the strategy is to seek to
generate a particular theory from the observed results of the study. Further, the approach is
commonly designed in such a manner that the researcher moves from what they know about a
specific concept to the general knowledge in the area. Bryman and Bell (2011), further point out
that the starting point of the research are the observations made about the specific knowledge or
concepts, where the researcher then proceeds to establish different patterns from the data they

15MANAGEMENT OF PROJECT
collect. Further, Flick (2011) adds that in his approach, there is no specific framework that is
used so as to guide the data collection process at the start of the study and this means that the
researcher normally establishes the focus of the study once they have collected data and
determined the nature of the information available. This means that the evaluation of the
collected data is what makes it possible for the researcher to generate a new theory, although hit
is also the point where the researcher is also able to tie the results to an already existing theory.
According to Bryman and Bell (2011), the approach is also commonly used in studies that are
qualitative in nature since the lack of a theory guiding the study is viewed as a positive thing as it
manages the potential of the researcher to have some bias in as far as the process of data
collection is concerned. The researcher therefore collects data through different instruments such
as interviews or questionnaires in relation to the issues being studied, and then proceeds to
examine this data thoroughly with the aim of establishing whether there are any patterns that
exist in the data collected. Saunders et al (2007) notes that this approach is considered effective
when combined with the positivist philosophy and this is due to the fact that the two allow for
collected data to be analysed with the intention to generate patterns that are then described as the
results that can bring about a new theory or fit into an already existing one. The current study
employs the deductive research approach as the researcher has considered all the aspects
discussed above and determined this to be the most appropriate. This is due to the fact that the
study will be focusing on the general business negotiation styles and then moving on towards the
establishment of the specific styles used by individuals managing financial institutions that are
operating in China and the UK.

16MANAGEMENT OF PROJECT
2.4 Research Choices
According to Saunders et al (2007), this is also another level of the methodology where the
researcher is expected to select the appropriate method to allow for an effective study to be
conducted. These choices are considered a significant determinant of the type of the data that
should be collected and used in a particular study. Kothari (2006) indicates that an evaluation of
each choice is necessary to ensure the researcher makes the decision from an informed
background. The three main choices available are the qualitative, quantitative, and the mixed
research methods. According to Krishnaswamy and Satyaprasad (2010), the qualitative research
approach is commonly used when the intention of a study is to evaluate the behaviour of the
subjects of the study where the intention is to understand how a certain phenomenon that is being
studied influences their behaviour and decision making patterns. It also seeks to evaluate how
people make different choices as well as their reactions to various experiences in life. Kothari
(2006) therefore indicates that this method is commonly used in studies that deal with the various
factors that are considered to have an influence on the behaviour of a specific group of
individuals or subjects. Further, Mugenda and Mugenda (2003) argues that as a result of the
specificity of behaviour of the subjects in relation to the phenomena being studied, it is
sometimes challenging to generalise the obtained results to other subjects who were not part of
the study but are affected by the same factors. In this case for example, the way culture
influences the negotiation styles of the business people in the UK may not be the same way it
influences those from China, and thus the necessity to conduct this study and establish whether
there are similarities or differences. This is mainly due to the differences in the characteristics of
the respondents or the targeted or affected people.

17MANAGEMENT OF PROJECT
The quantitative approach is another one of the choices available to the researchers and this one
is mainly related to the use of data that is in numerical or quantitative form. According to
Saunders et al (2007), the method uses this numerical data to for analysis through the use of
statistical techniques where the results are then used to draw conclusions on the concepts and
relationships that are being studied. Further, Krishnaswamy and Satyaprasad (2010), notes that a
researcher using this method collects data and converts it to numerical form in cases where it is
not, and this makes it possible to analyse it through the stated statistical methods. The results of
such studies are also presented in numerical form such as percentages or significance levels
which show the nature, direction, as well as the strength of the relationship between the different
variables and thus come up with conclusions that can be generalised to the entire population.
According to Flick et al (2004), the deductive approach is commonly coupled with this choice of
methods and this is due to the fact that the obtained statistics or results in quantitative form are
usually applied to make deductions of patterns from the data making it possible to generalise the
results to the a larger population. This is also considered useful in that using the same methods
and quantitative data, another researcher can carry out the data analysis process and come up
with similar results, and this means that the method is considered highly accurate if carried out in
the appropriate manner.
According to Saunders et al (2007), the mixed methods approach is also considered to be another
choice that researchers can make when it comes to the social sciences. The unique characteristic
of this approach is that it is made up of several types of methods where it is common to find
researchers to combine both the qualitative and quantitative research methods in one study. The
method derives its name from the fact that it combines several methods in one where these are
the qualitative and quantitative methods and this is usually at the discretion of the researcher

18MANAGEMENT OF PROJECT
based on the type of data they need to ensure the study is carried out in a comprehensive manner.
Kothari (2006) further adds that the main reason that this method is used by researchers is due to
the fact that each of the specific methods has some advantages and disadvantages and therefore
the two methods usually complement each other. The weaknesses of one method are usually
minimised or eliminated by the strengths of the other and vice versa. According to Saunders et al
(2007), the drive behind the use of this method is that using a single method may mean that the
weaknesses may affect the quality of the data collected as well as the results of the study, and
thus the combination therefore increases the chances of obtaining more valid and reliable results.
The use of the two methods leads to a reduction of the weaknesses of each method enables the
review of the issues in a more comprehensive manner thus being able to address the research
problem successfully. This has resulted in a situation where this method is popular in majority of
studies that are carried out in the social sciences (Saunders, et al., 2007).
Based on the description of the different choices presented above, the researcher has selected the
mixed methods as the most appropriate choice for this particular study. This means that the study
will use methods that combine both the quantitative and qualitative attributes when it comes to
the collection and analysis of the data for the study. This means that the researcher in this study
seeks to evaluate the business negotiation styles among the UK and Chinese players in the
financial services industry through the use of both qualitative and quantitative data. This will
ensure the researcher is able to evaluate the different styles of negotiations as well as the
relationships that exist between the different cultures and the negotiation styles. According to
Kothari (2006) the combination of the two methods will enable the researcher to analyse the
different aspects of the phenomena being studied in an effective manner.

19MANAGEMENT OF PROJECT
2.5 Research Strategy
The research strategy or design is also considered to be a critical part of the methodology and
this is pointed out by Kothari (2006) that it plays a significant role when it comes to the
determination of the direction and shape of the research process. Further, it is revealed that this is
an issue that should be addressed in a careful manner in order to help the researcher to select the
most appropriate methods that will help to conduct the study and accomplish the objectives of
the study. Saunders et al (2007) also notes that the research design that is selected in a study is
influential when it comes to the determination of the validity and reliability of the results of the
study, which in turn helps to obtain the appropriate conclusions. In addition, Goddard and
Melville (2007) reveal some elements of a research methodology can be ommited in a study
however it is necessary to describe the strategy due to its impact on the general nature of the
research process.
Krishnaswamy and Satyaprasad (2010), also add that the research strategy shows the researcher
the various methods that they can use in their study and this is in relation to each of the different
steps in the research process including the determination of the methods of collecting and
analysing the different types of data, as well as the specific types of data that will be applied in
the study. According to Kothari (2006), this is considered valuable in a study in that it helps the
researcher to avoid complications related to the use of wrong methods or data, and thus making it
challenging to achieve results that can be considered valid or reliable. These challenges often
result from the failure of the methods to be aligned to the data that is required for the study of the
research problem that they are required to address. Flick et al (2004) also points out that each of
the different research designs or strategies comes is associated with the use of specific methods
of data collection and analysis and this means that these methods are usually aligned to the

20MANAGEMENT OF PROJECT
research designs. Flick et al (2004) argues that the research design or strategy that is selected in
each study should be aligned to the methods and data collected as this plays a major purpose
when it comes to the conduct of the study in an appropriate manner.
In this particular study, the researcher, after evaluating the nature of the study and data that is
needed as well as the other issues described as necessary when it comes to the selection of a
research strategy, has settled on the use of a descriptive research strategy or design. According to
Kothari (2006), this is usually described as a design that is characterised by the evaluation of the
different phenomena in the study in their natural occurrence, thus eliminating any bias that may
come from the manipulation of these phenomena before the actual collection of data is done. As
a result, the researcher expects that the use of this strategy makes it possible for them to
effectively analyse the issues related to culture and its influence on negotiation styles, as well as
the differences of styles used in the UK and in China. Further, according to Saunders et al (2007)
the use of a descriptive research design allows for the evaluation of different phenomena in their
current state, which therefore means that the real scenario on the ground is evaluated in the
study, further improving the validity argument of the results. Kothari (2006) on the other hand
notes that this design is also appropriate for use in studies that are employing the mixed methods
approach like is the case in the current study since it provides an opportunity for the researcher to
make use of both qualitative and quantitative data, thus making it possible for a comprehensive
analysis of the different aspects of the phenomena being studied.
2.6 Target Population
The target population of any particular study is described by Kothari (2006) as the whole set of
individuals or objects that the concepts that the study is about touch or affect. Further, it can also
be described as all the subjects or items that can be considered as the respondents where these

21MANAGEMENT OF PROJECT
are considered to be where the focus of the study will be when it comes to the consideration of
those who will provide the data that is necessary for the particular study to be able to answer the
objectives and arrive at valid conclusions. Further, Saunders et al (2007) also indicate that the
target population of the study is what the researcher uses to select the subjects of the study who
will serve as the source of data for the study. This means that the target population must be
affected by the concepts or phenomenon that is being studied in the specific study. In the case of
this study, the target population is made up of the firms that operate in the financial services
sector of the UK and China and this could therefore mean the firms themselves as well as their
employees. In most studies, it is not usually possible to subject the entire population to the study
and this therefore means that the nature of the study determines the size to be subjected to the
study. Kothari et al (2006) notes that in cases where the population is very large, the nature of the
study, the data collection methods, as well as the type of data that is being sought usually plays a
critical role in determining whether to target the whole population or whether to select an
appropriate sample. This study will be focusing on the entire industries of the financial services
sectors in the UK and in China and this means that the whole population is of focus. This will
only be possible due to the fact that the study adopts a descriptive survey design and secondary
data.
2.7 Data Collection Procedures
According to Flick et al (2004) the data collection procedures are usually determined by the type
of data that the researcher feels appropriate for the study as well as the nature of the population
being targeted. In this particular study, the researcher will be employing the use of secondary
research sources and this therefore means that the only secondary data will be used in the study.
This is largely due to the fact that the target population of the study is made up of financial

22MANAGEMENT OF PROJECT
services firms operating in China and the UK and thus it is challenging to collect primary data.
The use of secondary data is considered appropriate in this study and this is due to the fact that it
will allow the researcher an opportunity to evaluate information from both the UK and Chinese
financial sectors in a comprehensive manner without having to visit the two countries. Further,
this will also make it possible for the researcher to establish the various negotiation styles in the
two countries based on the previous studies as well as the practices used in the different firms.
The secondary data in this study will be collected from websites of companies operating in the
financial sectors of the two countries as well as other websites that may contain information
related to the negotiation and communication styles of companies in the UK and China. Further,
the secondary data will also be collected from previous studies that have been carried out and
have focused on the evaluation of negotiation styles and the influence that culture has on
different countries.
2.8 Data Analysis
After the researcher has completed the process of collecting secondary data from the various
available sources such as past studies and websites, the next process is to arrange the data in a
manner that it can then be analysed using the appropriate methods. The qualitative data about the
differences in cultures as well as the negotiation styles will be analysed through the use of
content analysis. Further, any quantitative data collected on the influence of culture on
negotiation styles will be analysed through the use of descriptive techniques. After this process
has been completed, the researcher will then proceed to present the results through the use of
discussions as well as tables and figures as is appropriate.

23MANAGEMENT OF PROJECT
2.9 Ethical considerations
According to Kothari (2006), the ethical issues are those that affect the validity of the research as
well as issues that may affect any participant or subject in the study in a negative manner. In this
particular study, the use of secondary data eliminates most of the research ethical issues that may
arise or affect the participants in a negative manner. For example, the issue of seeking
permission of the use of information about the negotiation styles in the different firms in the UK
and China does not arise and this is due to the fact that only secondary data will be used in the
study. Secondary data is considered to be public data and thus there is implied permission for use
by any other person. Further, the data used in this study is not sensitive in any way and will not
affect the profitability of the firms or their competitiveness.

24MANAGEMENT OF PROJECT
Chapter Three: Literature Review
3.1 Introduction
This chapter presents the literature on the concepts that are being studied and these include
culture, cross cultural differences in international business, and communication and negotiation
styles. The chapter begins with a review of culture in the context of international business and
then then summarises Hofstede model of culture which shows the differences in the national
cultures of different countries where in this case, the focus is on the UK and China. Hofstede’s
Cultural dimension primary aims to highlight the necessary factors that focuse to make a critical
evaluation on how cultural differences leave a major negative impact on the overall performance
level of employees at the workplace. Further, the different negotiation styles will also be
evaluated. The chapter also evaluates the relationship between culture and communication and
negotiation styles, and finally, a review of the empirical literature in relation to all the concepts
above is carried out with the aim of establishing the gap in literature on how culture influences
negotiation styles particularly in the financial services sector that this study needs to fill.
3.2 Theoretical Review
The review is based on the Hofstede model of culture and other concepts that are related to the
study.
3.2.1 Culture in International Business Context
According to Adapa (2008), culture is basically defined as a set of values and beliefs that are
commonly observed in the behaviour of certain groups of people with respect to certain variables
such as their country of origin, or their ethnicity. Further, Craig and Douglas (2006) claim that
culture can also be viewed as a pattern of basic assumptions that are shared by a certain

25MANAGEMENT OF PROJECT
community or society, where this can either be regional, religious, organisational, as well as
national characteristics. It is a pattern of shared basic assumptions or values that a certain group
or society learns and adopts as it goes through the process of solving its problems of the
adaptation to the external environment as well as its internal integration. Further, Adapa (2008),
revealed that these assumptions are successful in helping the society to achieve effective
communication and coexistence, and thus are usually considered to be valid. Guang and Trotter
(2012) add that these are then taught to the new members of the society or new generations since
they are considered to be the appropriate ways of perceiving, feeling, thinking, as well as
reacting to similar problems. It is however revealed that cultures have become increasingly
porous (similar due to intercultural integration) particularly due to the growth of globalisation
and the merging and evolving that happens to different cultures and sub-cultures although this
has not reached to a point where the differences between the cultures become insignificant.
Moreover, Bret and Crotty (2008) suggest that culture should be considered as a group level
construct or dimension (viewed as being related to a group and not individual) and not an
individual one for it to make sense and to be examined in a useful manner. Kitayama (2002)
argues that cultural values that are measured based on the individual level of measurement are
not considered appropriate in predicting behaviour since behaviour also depends on the
individual. Chang (2006) also argued that the use of this individual level of measurement of
behaviour usually violates the fundamental conceptualisations of the goals of an effective
measurement process. According to Brett (2001), the social, political, and economic institutions
of a nation usually reflect their cultural values and beliefs and this therefore means that the
national boundaries provide a critical and appropriate way of studying the effects that culture has
on international business, communication and negotiations. Further, Hofstede (1994) engaged in

26MANAGEMENT OF PROJECT
the study of cultures and sought to establish the differences between the cultures of different
countries and this led to the formulation of the model of cultural dimensions which has become
instrumental in identifying the major variables that indicate cultural differences. Hofstede’s
concept believes that the cultural differences in each country usually play a critical role in
influencing the conduct of individuals, their decision making, as well as their communication
styles in the business world. Psychological barrier leaves a major impact on the overall decision
making process of an organization. Due to the lack of cultural flexibility employees fail to
maintain an effective communication with each other.
2.2.2 Hofstede’s Cultural Dimensions Theory
The Hofstede’s model is considered by most scholars such as Singh and Kaur (2016) to be the
most appropriate model to explain the differences in the cultural aspects of China and the UK,
and how these influence the different negotiation styles. According to Hofstede (2001), the
model is borne from the idea that there are major differences that exist between the national
cultures of different countries and these differences usually play a critical role when it comes to
the behaviour of individuals from each particular country. The model is designed in such a
manner that national culture is commonly categorised into five main dimensions which are used
to differentiate and compare the cultures of different countries. These are used to determine how
individuals will behave as a result of a particular situation or issue. These five dimensions are
therefore considered critical when it comes to understanding the different negotiation styles of
the multinational managers of different cultures where in this case the UK and China are of
particular interest.
Power Distance

27MANAGEMENT OF PROJECT
This dimension, according to Hofstede (1984), deals with the explanation of the level that
individuals in a particular culture agree and accept that power is not equally distributed among
the people. Further, it also explains how people in a society accept the existence of inequality in
society, and whether they accept that these inequalities should be part of society or they should
not. According to Singh and Kaur (2016) in cultures that score high on this dimension like
China, it is common to find that people tend to accept with hierarchical structures in society and
in organisations such that there are different statuses and those in authority should be respected.
Morris, et al. (2009) indicates that this means that in such a case, managers may feel that they
have no need to engage in negotiations with their subordinates, and this may bring about
challenges and conflicts in negotiations in international business since the subordinates may feel
they want to be involved. Further, Hofstede (2017) also reveals that in cultures that score low on
this dimension such as the UK, equality among members of society is promoted and desired and
people tend to feel that power should be distributed among members equally although respect
should be maintained at all times. Kundu (2001) adds that this means that such individuals enter
the negotiations with an open mind and from a point of equality, and thus negotiate in a more
peaceful manner. However, Morris, et al. (2009) points out that as societies continue to become
porous and as individuals get to know their individual rights, they are becoming more intolerant
to inequality in society, and this means that they are likely to question the decisions of their
superiors in the negotiation process.
Individualism vs. Collectivism
According to Hofstede (1984) this dimension focuses on the approach people take in terms of
whether they view themselves as individuals or as groups, and thus it describes the relationship
between individuals and the society and their perception of the individual being and needs. In an

28MANAGEMENT OF PROJECT
individualistic society like the UK, people tend to view themselves as distinct individuals and
thus there is a preference for a focus on oneself rather than on groups or families. Gupta and
Bhaskar (2016) point out that people compete with each other for individual gains and thus the
most common values include competition, aggressiveness, as well as personal ambition. Their
actions and behaviour are therefore driven by the need to improve their personal positions and
achieve individual success in their different endeavours. Conversely, the collectivist societies
such as China according to Hofstede (2001) are such that people are more concerned with the
welfare of others who are in their associated groups such as family or clan, or friends and this is
also supported by the arguments of Jiang (2013). The success and welfare of the group is
therefore of paramount importance to individuals in such cultures and they owe a lot of
allegiance and loyalty to the same. Kreitz (2007) also reveals that such individuals care for the
other members of the group, and in an organisational setting, they work towards the achievement
of the organisational goals.
Bazerman, et al (2000) indicated that this dimension is one of the most relevant when it comes to
the negotiation styles as noted in their study. This is due to the fact that individuals that are from
a culture that scores low on individualism (collectivist) societies tend to seek long term
relationships and to support others than individualists. Moreover, Erez and Early (2001) adds
that such individuals are more likely to exhibit cooperative behaviour and may not show self-
interest when it comes to negotiations. Further, such individuals will always seek in leaving the
negotiation process where each party has won something and this tends to lead to positive
outcomes and relationships among the parties to the negotiation.
Masculinity vs. Femininity

29MANAGEMENT OF PROJECT
This dimension is characterised by a review of the values and norms that are considered to be
popular in a particular culture. According to Hofstede’s theoretical concept, in a society that
scores high on masculinity, people tend to value traits that are commonly found in men. The
indication here is that people seek personal achievement and are more assertive and competitive
at the workplace as they seek success. Due to this high level of competitiveness, such employees
are more productive at the workplace as they seek to achieve high levels of performance that can
lead to their promotion and personal achievements and awards. This is the case with cultures
such as that of the UK. On the contrary, Oertig and Buergi (2006) suggests that societies that are
more feminine are characterised by values that are more evident in females and these may
include the care for others, the improvement of the quality of life, as well as a show of modesty.
This is commonly found in Asian cultures such as China where people tend to seek consensus
among members and business partners and rarely engage in personal competition.
According to Akgunes, et al (2012), individuals hailing from feminine societies are considered to
be more concerned of the needs of the other party and achieving harmony and cooperation when
it comes to business negotiations.
Uncertainty Avoidance
According to Hofstede (2001), this dimension is characterised by the level at which the
individuals in a society are usually concerned with dealing with issues that have some
uncertainty or ambiguity in their lives. It is also concerned with the idea that the future cannot be
predicted or controlled, and how people in different societies deal with this fact. It therefore
seeks to establish whether a society is concerned with the establishment of measures to ensure
that they have a certain level of control on the outcomes of the future, or whether they simply are
comfortable with letting the future be determined by nature or fate. Tu (2015) reveals that those

30MANAGEMENT OF PROJECT
societies that have high levels of uncertainty avoidance are wary of changes in their ways of live
and traditions, and therefore tend to have a strong link with their traditions and long established
principles and norms. On the contrary, those that do not score high on uncertainty avoidance tend
to be more relaxed in their traditions and welcome change easily such as through education and
technological development. China scores low on uncertainty avoidance which is the same case
with the UK as shown in the Hofstede comparison website. In the context of a negotiation,
Shena, et al. (2009) argues that people from a culture of high uncertainty avoidance may not be
willing to make changes to their demands or conditions, and will want everything to be written
down clearly, while those from low uncertainty societies may be open to changes based on
mutual agreements between the parties to the negotiations.
Long-term vs. Short-Term Orientation
This dimension is concerned with the evaluation of how people view in terms of their connection
with the past, and their focus on the present and the future. Hofstede (2001) argues that all
societies are concerned with time but the difference is that some societies focus on their past
while some give more attention to the present and the future. Those societies that score low on
the dimension tend to have a long term orientation meaning that they maintain their long term
traditions and norms, and this makes it challenging for them to accept change. On the other hand,
Hofstede (2017) also adds that those who have a short term orientation tend to be concerned
more with their future and this is done through ensuring they save for the future through
thriftiness and modesty, as well as through education. Sonal (2011) notes that this means that in
terms of negotiations, people who focus on their past may have a challenging time in
negotiations as they may not be open to changes or compromises for the sake of the future.

31MANAGEMENT OF PROJECT
3.2.3 Hall’s Cultural Dimensions
According to Hall (1959), culture can be defined as the way of life of people in different
societies and this included a combination of their learned behaviour and patterns, their attitudes
as well as their material possessions. Sonal (2011) also adds that culture is subconscious and is
therefore an invisible control mechanism which operates within our thoughts and guides our
perceptions and external behavioural patterns. According to Hall (1983) the only way of being
aware of our own cultures is through being exposed to a culture that is different from our own.
Further, he reveals that the members of a certain society usually internalise the cultural
components of their specific society, and then proceed to act within the limits of these
components, and this is usually based on what the specific culture deems to be the culturally
acceptable way of behaviour.
In his cultural dimensions theory, Hall (1990) comes up with the concept of context, and this is
what he uses to differentiate and compare different cultures in order to categorise them into
different categories with distinct differences. Hall and Hall (1990) proceed to define context as
the information that usually surrounds a particular event, and is usually inextricably connected
with the specific meaning of the event in question. As a result of this concept, the cultural
context theory proposed by Hall (1990) has categorised the different cultures of the world into
two different categories, and these are the high context cultures and the low context cultures.
This categorisation is used to compare and contrast the UK and Chinese cultures in relation to
communication and negotiation styles in the following paragraphs.
According to hall (1976), cultures can be categorised into high context versus low context
cultures as this makes it easier to understand the basic differences that exist between cultures in
terms of communication styles as well as other various cultural issues. In addition, it is revealed

32MANAGEMENT OF PROJECT
that communication styles usually describe the way in which people usually express themselves
in different cultures and situations such as when it comes to business negotiations, as well as the
communication patterns that are usually associated with a certain culture or people, where in the
case of this study, the focus is on the Chinese people and the UK people. Further, Hall (1976)
adds that cultural issues are usually in relation to the different factors in society and these include
the status of the country, the history of the country, the religion that is practised by the people, as
well as the traditions of the people of the particular country. Further, it is also noted that the
cultural issues that are considered also include those issues proposed by Hofstede (2008) such as
the individualism versus the collectivism cultural dimension.
In the high context cultures such as in the case of most Eastern cultures like that of China, the
nature of communication and negotiation styles is usually dependent on the way the human
relationships are designed in terms of closeness as well as the social hierarchy in the society
which is well structured and, finally, the strong behavioural norms of the individuals. Cardon
(2008) notes that in the cultures that cab be considered to be of high context, the internal
meanings of a particular communication or message is usually embedded deep in the message
that is being communicated, and this therefore means that not everything is usually stated in an
explicit manner in terms of writing or through spoken word. Further, Beamer (2003) reveals that
in a high context culture, the listener, or a party to a communication or negotiation event is
usually expected to read between the lines in order to understand what is not being said explicitly
or written, and this is usually possible if they have adequate background knowledge of the new
culture. This is the nature of the negotiation styles among the Chinese business people which are
usually characterised by the lack of clear and explicit statements where the other parties are
expected to understand them.

33MANAGEMENT OF PROJECT
In addition, Hall (1976) also emphasises that in a context culture, the communication of message
is usually characterised by a situation where most of the information that is being passed is
usually either in the physical context, or usually internalised in the person that is communicating
or taking part in the communication, while very little information is usually passed in the form of
coded, explicit or the part of the message that is usually transmitted to the other parties. In
addition, DeVoss et al (2002) indicates that in the high context cultures, individuals usually tend
to communicate in a logical or linear manner and this means that they speak one after the other,
where it is not common to find a particular speaker being interrupted. This means that in the case
of the negotiations, one party will be allowed to present their argument and requests, and then the
opposing party presents theirs after the other one has completed, giving ample time for each of
the parties to listen carefully and digest what is being communicated.
In addition, it is also noted that in such cultures, communication and negotiations are usually
done in an indirect manner, and the people tend to be ambiguous when they communicate, it is
done in a harmonious manner, in reserved manner, and the issues being negotiated about are
always understated. Further, Ding (2004) notes that in the high context cultures, the
communication and negotiation process usually involves more of the information that is in the
physical context or that which is internalised in the in the individual that is communicating.
Further, it is revealed that greater confidence and value is usually placed in the non-verbal
aspects of the communication process as compared to other cultures which place more value on
the verbal aspects of the communication (Hall, 1976).
In the contrary, Hall (1976) indicates that in low context cultures such as in most of the Western
cultures and countries like the UK, the communication and negotiation processes are such that
the meanings of a message are usually stated in an explicit manner through the use of language,

34MANAGEMENT OF PROJECT
either in spoken or in written form. In this context, individuals that are involved in a
communication or negotiation process usually expect that they are given explanations in cases
where something that has been said or communicated is not clear enough for their understanding.
Further, Griffin (2004) argues that in this context, most of the information that is being
communicated is usually expected to be contained in the transmitted message as this helps to
make up for what is actually missing in the context whether it is the external one or the internal
one. Griffin (2004) further argues that in a negotiation context between low context cultures, this
is usually characterised by direct and linear communication which in some cases is such that
there is constant use of the spoken word. This use of words is sometimes never ending and this is
due to the fact that people usually do not stop asking for clarifications and giving explanations
about the important issues that are being negotiated on. According to House et al (2004), in this
context, people tend to communicate and negotiate in a direct and precise manner, and it is also
common to find individuals participating in the negotiation process being open, dramatic, as well
as arguing based on their emotions, feelings as well as true intentions.
It is also noted that the high context cultures are usually highly concerned about their past and
thus base their actions and behaviour on the past, and this therefore means that they are very
stable and are unified when it comes to their actions, they are also very cohesive and tend to be
wary of change in the society. According to Butler and Boehringer (2005) people in high context
cultures usually tend to rely heavily on their history and the past, as well as their relationships,
their status in society as well as a combination of other relevant information such as their religion
in order to give meaning to a particular event that is of concern during the communication
process. In contrast, the low context cultures such as the UK are usually such that they value
individualism in their associations unlike in other cultures that value collectivism and harmony

35MANAGEMENT OF PROJECT
between the group members. As a result, Hall (1990) notes that the individualism dimension
usually is designed in such a manner that the members of the society usually prioritise their
individual needs as well as their goals such as personal achievement and success over those of
the entire group or society. According to Tella (2005) it is also recognised that one of the major
features that can also be used to differentiate between the high context and low context cultures
is that the idea of politeness is viewed in different ways. For example, in a low context culture
such as the UK, it is common to find people asking questions in a communication process or
negotiation process which can be viewed as being too personal or offensive by individuals from
a high context culture like the Chinese.
3.2.4 Business Negotiation Styles
According to Cichosz (2016) the business negotiation process is usually characterised by two or
more opposing parties and is considered to be a challenging matter for the parties involved. In
the context of international business, it plays a critical role in signifying that both parties get
what they need to focus that they succeed in the business endeavour. For the organisation
seeking to expand in a foreign market, it helps them to enter the market and enter partnerships
with local partners under the best terms. Akgunes, et al (2012) indicate that business
negotiations, particularly when it comes to cross cultural situations, are considered to be critical
and one of the most challenging tasks in the communication process in the business environment.
Cichosz (2016) has simplified business negotiation as the process of communicating back and
forth where the purpose is to discuss different issues with the purpose of reaching an agreement
that is satisfactory for all the organisations or people that are parties to the negotiation.
Further, Lick and Hoo (2016), noted that negotiation can also be described as a process that is
commonly used in business settings to manage disagreements where the main view is to achieve

36MANAGEMENT OF PROJECT
contractual satisfaction of the needs of the parties to the negotiation. It is considered to be a
process or a method that is usually made up of different steps that need to be followed to ensure
successful outcomes. It is also a method that is used to manage conflicts or disagreements and
this is due to the fact that the two parties involved could not initially agree on the terms that
could satisfy their needs in a mutually beneficial manner. The indication here is that negotiations
are usually considered successful if the two parties involved come out with successful results in
terms of compromising on some of their wants and getting some (Przytuła et al, (2015).
According to Tu and Chih (2011), there are three main traditions that are commonly associated
with the process of negotiations. Generally, there is the tradition of consulting books that contain
advice for negotiators and these are sometimes several centuries old among most negotiators
across the globe so as to learn the art of effective negotiation skills. The second tradition is
related to the construction of different mathematical models that can be used to negotiate and
mediate in a rational manner and these have been developed by economists as well as scholars
that practice game theory. Finally, there is the behavioural approach to negotiation, which is
what this study is concerned about since culture influences the behavioural aspects of the people
that are party to the negotiation as well as their need to consult from books.
According to Przytuła et al (2015), before foreign and local partners can engage in international
business, there is the need for them to enter into negotiations related to the terms of agreement,
engagement, or the contract. Each of the party’s individual cultures usually play a critical role in
determining their way of thinking, their values as well as their behaviours, and this, according to
Chang (2003) plays a critical role in determining the style they adopt in the negotiation process.
Further, Przytuła et al (2015) also argued that different cultures usually result in their members
adopting different negotiation styles and this is due to the fact that each culture comes with

37MANAGEMENT OF PROJECT
different values and norms. Further, Chang (2003) adds that these different styles of negotiations
are borne as a result of the differences that exist in communication patterns, the personal
characteristics of the individuals involved, as well as their persuasion strategies. Individuals who
specialise in negotiations in the context of international business should first understand the
different negotiation styles that different individuals adopt based on their countries as well as
their cultural backgrounds.
3.2.5 Culture and Business Negotiations
There have been a number of studies such as Yu and Heng (2011), Przytuła et al (2015) and Lick
and Hoo (2016), that have sought to evaluate the link between culture and negotiation styles, and
the main line of literature has revealed that culture is considered to be one of the most important
factors that should be considered when it comes to negotiations that involve people from
different countries. According to Gannon (2001) gaining a clear understanding of the major
differences or similarities that exist between each culture by the parties to the negotiation process
is a critical facilitator of effective communication during the process, and thus increasing the
chances of successful outcomes. In the context of cross cultural business negotiations, the parties
to the negotiation need to make themselves familiar with the different behaviours and
characteristics of the other people involved who are from different countries. Yu and Heng
(2011) note that in the conduct of international business, negotiations tend to be more complex
than when involving business partners from the same culture and this is due to the fact that the
different players are from different cultural backgrounds.
Moreover, Soriano (2014) stated that as a result of the sophistication that exists in cross cultural
business negotiations, as well as the knowledge that is required for the same, most people that
engage in these negotiations tend to fail in terms of reaching successful agreements. This is due

38MANAGEMENT OF PROJECT
to the fact that the cultural issues and differences play a critical role in influencing behaviour
from an internal perspective. Lee et al (2011) also indicates that during the conduct of such
negotiations it is considered important for the parties to a negotiation to be considerate and adjust
their tactics to meet the negotiation styles of the other parties that are involved. Chmielecki
(2013), also adds that when it comes to business negotiations that are international in nature, the
managers of multinational corporations need to anticipate the culturally related ideas that may
have a higher likelihood of being understood and in line with the beliefs of an individual based
on their cultural background.
Baicu (2014), also argues that culture serves a primary role when it comes to business
negotiations in four different ways. First, it influences the individual’s perception and
comprehension of reality. Secondly, it also plays a critical role in helping an individual to block
any information that they consider to be incompatible or unfamiliar to their cultural beliefs and
norms. Thirdly, it also helps to project meaning onto the other party’s behaviours as well as their
thoughts and actions, and finally, it helps in implementing the individual’s action motive based
on their ethnocentric views. Gray (2012), reveals that in order for business managers of
international organisations to achieve success in their cross cultural negotiations, it is important
for them to understand the cultural backgrounds of all the people involved. In addition, the
business managers involved in the negotiation need to be able to assume the position of the other
parties to the negotiation in order to be able to understand their goals. A critical issue to note is
that as a result of the continued spread of globalisation and the development of the global
economy, cross cultural negotiations have become increasingly important in as far as the success
of international business is concerned. Culture therefore plays a critical role when it comes to the

39MANAGEMENT OF PROJECT
success of international business negotiations and this is due to the impact that it has on the
behaviour of individuals.
3.2.6 Financial Services Sectors in China and UK
According to Narayan (2015), the development of the services sector in China has not been as
significant as that of the manufacturing sector due to the fact that the country’s policies have
mostly focused on the manufacturing sector over the years. Huang and Lardy (2016) indicates
that in the past decade, the financial services sector in China has expanded significantly and in a
rapid manner and this has resulted in an increase in its share of GDP contribution from about 5
per cent in 2007 to over 9 per cent in 2015. As a result of this continued growth, today, the
financial services sector contributes more than a third of entire services sector growth in China
(Watts, 2015). According to Huang and Lardy (2016) in the summer of 2015, the main stock
markets in China, which are the Shanghai and Shenzhen stock markets suffered losses and this
resulted in a substantial decrease in the volumes of trading. Narayan (2015) notes that in turn,
many skeptics in the industry and on the growth of the Chinese economy argued that the
contribution of the financial services sector to the economy would reduce. However, to date, this
has not changed and the sector has continued to experience rapid growth with its contribution to
the services sector increasing to 16 per cent (Huang and Lardy, 2016). This growth is
significantly as a result of the entry of global financial services firms in the country as well as
well as that of the internet and mobile banking services (Huang and Lardy, 2016).
In the case of the UK, CityUK (2017), reveals that there are major financial institutions in the
country and London is the capital of global finance in the country, being one of the three cities
named command centres of international finance and economy together with Tokyo in Japan,
and New York in the U.S (Turvill, 2017). The country is characterised by a presence of major

40MANAGEMENT OF PROJECT
global financial institutions with over 500 banks having offices in London. The city of London,
the centre of the UK financial services industry, is also ranked as the leading international centre
for related services such as banking, insurance, foreign exchange trading, as well as Eurobonds
and energy futures. The financial services industry in the UK is primarily centred in the City of
London and Canary Wharf (Turvill (2017),). There are global financial institutions that have
established operations in the UK such as Barclays Bank, HSBC as well as Citigroup, and this
means there is a large mixture of cultures in terms of the employees serving these organisations.
According to the CityUK (2017), the financial services sector in the UK plays an important role
in supporting the economy of the UK through the provision of employment for over 7 per cent of
the UK workforce, and leads to the production of almost 12 percent of the total economic
activity and output in the country. Further, the sector contributes over £66 billion in terms of
taxes and the sector also generates trade surplus of about £72 billion. The CityUK (2017) report
also reveals that since 2007, foreign companies have invested over £100bn into the financial
services sector in the UK more than in all other sectors of the economy in the country. Further,
this industry has operations across the entire country with over 2.2 million employees where two
thirds of these work outside the city of London. According to the report by CityUK (2017) the
value added to the economy of the UK by the financial services sector per every worker in the
industry is considered to be about £87,000 per year as compared to £52,000 contributed by the
workers in all the other sectors of the economy. This therefore means that the industry has a large
number of foreign players whose entry into the UK economy means that they first had to enter
into negotiations with their local strategic partners. This will therefore provide a clear scenario
for the analysis of negotiation styles adopted by the UK players while at the same time
comparing them to those commonly used by the Chinese negotiators (Turvill, 2017).

41MANAGEMENT OF PROJECT
Chapter Four: Data Analysis and Findings
4.1 Introduction
This chapter will seek to provide the results of the data analysis process which is carried out
based on the various methods and techniques that have been provided in the previous chapter. As
noted in the previous chapter, the data analysis was carried out through the use of the descriptive
and content analysis and this is mainly due to the fact that only qualitative data was collected and
this was through the use of secondary sources of data. The chapter is therefore structured based
on the objectives of the study so as to ensure that all the objectives and aims are answered in a
comprehensive manner.
4.2 Business Negotiating Styles of UK and China Financial Services Institutions?
This study sought to establish the various negotiation styles that are normally used by the firms
operating in the financial sectors of the UK and China. This was considered critical in that it
would provide background information on the evaluation of the idea that culture usually
influences the negotiation styles of the individuals and businesses. The results of the evaluation
of secondary data from past studies such as Sebenis and Qian (2010) reveal that the negotiation
styles usually differ from county to country, and in the case of China and the UK, these
differences are significant and deserve to be evaluated. According to Chang (2006), the UK is
ranked by the World Bank as one of the major economies of the world and is one of the oldest
societies in the world. Further, the nature of business in this environment is considered to be
challenging in that there is a lot of competition and this therefore means that for businesses to
survive in this environment, they have to be aggressive when it comes to negotiations as well as

42MANAGEMENT OF PROJECT
other business practices. The negotiators in the UK firms operating in the financial sector are
usually considered to be aggressive and quick thinkers who are capable of making changes to
their strategies and tactics within a short period of time depending on how the negotiations are
going changing their strategies and tactics during a 10-minute break time, forcing their
opponents to respond quickly. This characteristic of the UK negotiators means that their ability
to change tact in a rapid manner requires that the partners or opponents that they are negotiating
with have to also respond in quick manner otherwise they are left without achieving their goals
in the negotiation process.
Further, the results such as Baicu (2014) also reveal that the negotiation styles in the UK are such
that the negotiators usually value their time and this therefore means that they are usually
punctual when it comes to attending the negotiation proceedings and thus they do not usually
waste any time for their partners and opponents in the negotiation process. In addition, the results
also show that due to this focus on time, the negotiators from the UK usually are guided by the
idea that the negotiation process should be carried out in a manner that is productive and
efficient, and that the sooner the process is carried out and completed the better than waiting
since this allows the negotiators to engage in the normal operations of business.
The results such as Chang (2001) also reveal that in terms of time consideration, it is common to
hear the UK business negotiators asking their opponents to find some time to come over for the
negotiations, and this statement is usually interpreted in different ways based on whether the
person is from China or from the UK. In the case of the UK negotiators, they know that this
statement should be viewed as an official statement and it means that they should make prior
notice to the other parties before they can visit to go and negotiate. In contrast, to a Chinese
negotiator, this statement is seen to mean that no prior notice is needed and that they can just

43MANAGEMENT OF PROJECT
appear for the negotiations any time they feel like without first notifying their counterparts or the
other party that has invited them to the negotiation process.
Further, the results such as those of Gunia et al (2011) also reveal that in the case of the UK,
there is usually a direct relationship between the time concern and the urgency of a particular
matter that needs to be addressed through a negotiation process. This means that a matter that is
considered to be urgent and important usually requires that it is given immediate attention and
action is taken immediately. Further, the results of Gray (2012) also reveal that in some cultures
such as Eastern cultures like China, a matter that is considered to be important may be addressed
in a totally different manner such as where it is assumed that it requires to be given more time so
that the decision makers can contemplate on the issue in a more comprehensive and unrushed
manner. Further, the results reveal that in such cultures, it means that providing a time limit for
such an important issue to be attended to means that the negotiators feel that they are being given
unnecessary pressure.
Additionally, the results of the evaluation of secondary data from the different studies such as
Cichosz (2016) reveal that the main difference between the Western cultures such as the UK and
Eastern or Asian cultures such as China when it comes to negotiations is that the UK negotiators
usually focus on the articles presented in the negotiation. On the other hand, the Chinese
negotiators in the financial sector tend to focus more on the relationship between them and the
other parties to the negotiation. Further, it is also revealed that the negotiators from the UK are
such that they will only concede on the important issues in the negotiation process when the
process is nearing its end and are usually quick to establish their conditions and will seldom back
down from them. In addition, it also shown that such negotiators usually prefer engaging in

44MANAGEMENT OF PROJECT
quick negotiations and do not like to engage in a lot of socialisation as they view this as leading
to delays in the process.
In the case of the Chinese negotiators, the results of different studies such as Graham and Lam
(2003) reveal that one characteristic of communication and negotiation that is considered critical
is depicted in the rule that silence is golden. It is indicated that the people in this culture do not
only want to remain silent in a negotiation process and only say what they feel is important, but
they also find that negotiators who talk too much are being immature or just being showy. This is
however viewed by negotiators from the UK financial sector as not knowing anything pertaining
to the issues being negotiated about, or having no ideas or being uncertain on what they want.
The results also show that when it comes to the negotiation process, the Chinese tend to be quiet
and use less facial expressions, which is considered to be dull by their UK counterparts. This
situation is considered to result in some confusion and misunderstanding which is considered
unnecessary and can be avoided if the parties to the negotiation process are aware of the
differences that exist between the two cultures and their negotiation styles.
In addition, the results of the evaluation of secondary research such as Ohashi (2000) reveal that
the Chinese negotiators in the financial services industry usually value the creation and
maintenance of close interpersonal relationships, and then this is followed by the focus on
morality and the adherence to law and order. The results also show that since the Chinese
economy as well as its relevant laws have only been developed for several decades, it cannot be
argued that there is a complete set of laws that govern the business negotiations. However, the
Chinese tend to rely on the traditional values and laws in order to conduct their business
operations such as negotiations in an effective manner. This therefore means that the
implementation of a contract or the results of a negotiation process will in most cases be

45MANAGEMENT OF PROJECT
dependent on the interpersonal relationships that exist between the financial organisations in the
negotiation process.
Further, the results such as Samovar and Porter (2005) also reveal that negotiators of Chinese
origin tend to highly value the establishment and maintenance of harmonious relationships and
this means that their leaders are not likely to reveal any bad details about the issues that are
critical to the negotiation process. Further the results of Akgunes et al (2012) revealed that any
bad news can only be revealed by the assistant of the opponent and this is commonly done after
the negotiation process is completed such as during the feast that usually follows after the
signing of the contract. This means that in order for non-Chinese negotiators to minimise the
possible risks that may arise, it is important to point out clearly during the initial stages of the
negotiation that a new negotiation process would be commenced in the event that anything that is
not expected comes up and changes the agreements after the initial negotiations are over.
Further, results such as those of Jiang (2013) also reveal that the Chinese people usually
negotiation and conduct their business based on the relationships they have with the partners, and
this aspect is usually used by these negotiators in the financial services sector to pressure the
opponents who hesitate to make decisions or accuse them of neglecting this relationship. Further,
it is also revealed that the Chinese will be willing to adopt an amicable solution to a certain
negotiation, but will wait to see if the other party extends this leeway first. Further, the results of
Jiang (2013) also reveal that since the Chinese people are naturally born and bred to be business
people, they usually drive a hard bargain when it comes to the negotiation process. This means
that when it comes to the negotiation process such as by individuals in the financial services
sector, it is common to find that they will set a high price at the beginning of the negotiation
process, and then they will make concessions slowly during the process.

46MANAGEMENT OF PROJECT
4.3 Similarities and Differences in the Negotiation Process of Chinese and UK
People
The study also sought to establish the various similarities and differences that exist between the
negotiation styles of the Chinese and UK financial services firms. The results of the review of
secondary data show that due to the fact that culture influences the negotiation styles in a
significant manner, there are some similarities and differences that exist between the negotiation
styles of the Chinese and UK firms operating in the financial services sector. First, the results of
studies such as Chang (2006) reveal that in terms of the definition and approach taken to the
negotiation process, the UK people see this as a competitive process, whereas the Chinese may
view the process as an opportunity to share information.
The results of the review of secondary data such as Varner (2000) reveal that in the case of the
UK negotiators, they do place a strong focus on the gender or job title of the opponent and if the
titles of the two negotiators are not a match, this is viewed as disrespect to the other party. This is
considered to be similar in the case of the Chinese culture where when the two parties that are
negotiating introduce themselves at the start of the process, they exchange business cards so as to
determine the position or title of the other. In a case where one party does not bring their
business card, this is usually seen as a sign of disrespect or deliberately ignoring the other
person, and results in challenges in the negotiation process.
The results of the data analysis process also reveal that in terms of time, the UK and Chinese
negotiation styles differ in a significant manner. The UK negotiators perceive time as an
intangible asset and thus tend to conduct their negotiations in a rapid pace and conclude them
within the shortest time possible. On the other hand, the Chinese negotiators do not have this
attitude, and they usually argue that focus of the negotiation process should be on the negotiation

47MANAGEMENT OF PROJECT
itself, regardless of the amount of time that the process will take to be completed. The UK
negotiators view time as a valuable asset to the business process while the Chinese negotiators
view time as an aid to the process and the way it is managed or utilised does not change the
future in any way.
The results also show that in terms of the risk tendencies, the two cultures differ when it comes
to the negotiation style adopted. In the case of China, the negotiators are only comfortable with
making decisions when they have collected sufficient information and are therefore less likely to
take risks. Their approach during the negotiation process is to reduce the risks as much as
possible while avoiding face to face conflicts so that they are not held personally responsible for
the outcome. Such negotiators are less willing to make decisions on their own and this tends to
delay the negotiation process as they make consultations. On the other hand, the UK negotiators
value practicality and efficiency and this means that they are more entrepreneurial as well as
easily make decisions on their own even when they do not have sufficient information in order to
save time. This is in line with the results of Jiang (2013).
Further, the results also show that there is a major difference in negotiation styles between the
UK and China when it comes to the individualism versus collectivism dimension. It is revealed
that in the case of the UK negotiators, they tend to emphasize on individuality as well as the fact
that they value independence, being unique and are also bold when it comes to their statements.
These negotiators are also usually responsible for the last decision in the process, and this means
that they tend to have a lot of power in the negotiation process. On the other hand, the results
reveal that in a collectivist society such as China, the negotiators are such that they feel the group
comes first before the individual, and this means that they are likely to make decisions that
favour the group in place of their own individual needs. Further, in China, the results reveal that

48MANAGEMENT OF PROJECT
the final decision in the negotiation process usually reached through first going through group
discussions, and this therefore means that the responsibilities are usually shared among the group
members and this is due to the fact that the entire group takes part in the negotiation process.
These results are similar to the results of past studies such as Akgunes et al (2012) and Lee et al
(2012).
4.4 Influence of Culture on Negotiation Styles
The study also sought to evaluate the influence that culture has on the negotiation styles in the
international business context. The results of the analysis of secondary data revealed that there is
a significant relationship between culture and negotiation style and this therefore means that
culture plays a critical role in the determination of the negotiation style adopted in a certain
country by business negotiators. The results of Jiang (2013) reveal that culture has a significant
influence on the personal styles of the people that are negotiating. For example, it is revealed that
the people from the UK tend to be more informal as compared to the Chinese negotiators. It is
revealed that for example, negotiators from the UK may comfortably address each other on first
name basis even when they have just met. In contrast, the results show that the Chinese view this
as disrespectful and will only use formal ways of addressing each other. These results are also in
line with other studies such as Guang and Trotter (2012).
The results also reveal that there are those cultures that usually value direct and simple forms of
communication when it comes to their negotiations while there are those that usually prefer to
make use of indirect and complex methods such as the use of body language or facial
expressions as well as different figures of speech. The results show that in the case of the UK,
the negotiation process is considered to be direct and the people are straightforward and tend to
convey their messages in an honest and trustworthy manner. The results however reveal that in

49MANAGEMENT OF PROJECT
the case of the Chinese, when it comes to communicating and negotiating, they tend to adopt an
indirect style and in some cases, it tends to come across as being vague and ambiguous. For
example, it is revealed that smiling is considered to be a common means of communication when
people first meet, however, in the case of Chinese negotiators, it can be considered to have
different meanings such as trust or distrust, and therefore it is commonly considered to be a mask
of the true intentions and feelings of the Chinese negotiators. This is also in line with the results
of other studies such as Cichosz (2016) and Imai and Gelfand (2010).

50MANAGEMENT OF PROJECT
Chapter Five：Conclusions and Recommendations
5.1 Introduction
The entire study has provided an in-depth overview about the cross cultural comparison of
the international business negotiation style in the finance sector. The overarching term
negotiation is having a deep insight from both broad and narrow perspective. In the broader
sense negotiation includes consultation, communication, discussion and exchange of views,
thoughts and ideas. While expanding the entire process of business in different geographical
areas business experts have to be accustomed with the cultures and religious beliefs of different
countries. After evaluating the cultural dimension the organizational experts tend to make
business strategies and policies. In this specific study the researcher has critically evaluated on
how the business organizations of China and UK has adopted different negotiation styles for
dealing with the people of different cultural backgrounds and attitudes (Vaara et al. 2012). While
running the entire process of business organizational experts have to involve different employees
belonging to various cultural backgrounds. Therefore, the implementation of different
negotiation style is highly important with the help of which the business experts can make an
effective communication. The primary objective of this specific research is to critically evaluate
various business negotiating styles of UK and China financial services institutions. The
researcher has analyzed some of the major barriers the business organizations are facing
currently in implementing negotiation style among the cross cultures (Neuliep, 2012).
This chapter presents the conclusions and recommendations that are drawn from the data
analysis and discussions that have been presented in the previous chapter. As discussed earlier,
the study focused on conducting a cross cultural comparison of the international business

51MANAGEMENT OF PROJECT
negotiation styles adopted by financial sector firms in China and the UK. The study was guided
by objectives such as the establishment of the influence of culture on negotiation styles, the
evaluation of the different negotiation styles adopted by the firms in the UK and China, and the
evaluation of the differences and similarities of the negotiation styles of the UK and Chinese
firms operating in the financial services sector (Schneider, Ehrhart & Macey, 2013). The study
employed the use of a descriptive research design in order to evaluate these issues in a
comprehensive manner. The data was collected through secondary sources and data analysis was
carried out through the use of content analysis. The results have been shown in the previous
chapter, and the conclusions and recommendations are shown below.
The primary reason of choosing secondary source of data collection technique includes that
the researcher could have received biased response from the participants who have taken part in
the entire data collection method (Talhelm et al., 2014). On the other hand, in order to gather
necessary data and information regarding the impact of cultural differences on the overall
business negotiation styles the opinion of different eminent scholars is highly important.
Therefore, the researcher has focused on evaluating various factors that leave a major negative
impact while dealing with the cross cultural differences within an organization. At the same time,
the study has focused to make an in-depth evaluation on how UK and China financial service
institutions tend to use similar kinds of negotiation styles within the organization. In this specific
research some of the appropriate research methodology has been used in order to gather
appropriate data and information from various resources. In the literature review the researcher
has focused to make an in-depth analysis about the importance of making research methodology
with the help of which the entire process of research work is conducted in a systematic way
(Ahern, Daminelli & Fracassi, 2015). With the help of an effective research methodology style

52MANAGEMENT OF PROJECT
the researcher has collected proper data from different resources. Further, the study also
concludes that the negotiation styles of individuals from different cultures will differ in a
significant manner.
5.2 Conclusions of the Study
This study sought to establish the various negotiation styles adopted by the UK and Chinese
firms operating in the financial services sector. The results reveal that in the UK the negotiators
tend to be direct, aggressive, and tend to value time and make decisions on their own. In contrast,
the Chinese negotiators adopt a relationship based approach to the negotiation process, and tend
to be more laid back and harmonious when it comes to the negotiation process. This study
therefore concludes that in the case of the UK negotiators, their approach to negotiations is like a
business transaction without many formalities and they will seek to complete the process in the
shortest time possible. Further, it is also concluded that they negotiate in a direct manner and
make all the requirements clear whether in written or spoken form. The study also concludes that
in the case of the Chinese negotiators, they tend to be indirect and to use language and other
communication aids and will in most cases not state what they want in a direct manner
(Anderson, Potočnik & Zhou, 2014). The study also concludes that the Chinese tend to take a lot
of time when it comes to making decisions since they are more risk averse and have to consult
with the members of the group.
The results also reveal that there is a significant relationship between culture and negotiation
style and this therefore means that culture influences the negotiation styles in a significant
manner. The study therefore concludes that one of the major determinants of the negotiation
styles adopted by international firms in their operations is their home cultures. After evaluating
the entire research work it can be evaluated that cross cultural differences leave a major impact

53MANAGEMENT OF PROJECT
on the overall business expansion process. People belonging to different geographical boundaries
and cultural attitudes are associated within the business organization. In addition, the customer
service providers have to handle the needs and demands of different customers from belonging to
various geographical corners (Schaubroeck et al., 2012). Therefore, using negotiation styles
within the organization is considered as the business strategy and policy with the help of which
people belonging to different cultural attitudes and backgrounds get equal opportunity for being
the part of a business organization. Employees should be judged as per the level of skill and
competency rather than their cultural backgrounds and attitudes.
Objective linking:
Objective 1: To establish the various business negotiating styles of UK and China financial
services institutions
This specific research objective has been linked with the literature review. In the literature
review part, the researcher has made an in-depth analysis about various styles of negotiations
that business organizations tend to follow for maintaining a rapport with cultural differences. In
this specific part the study has focused to evaluate some effective negotiation methods based on
which business organizations tend to work with the people of different geographical boundaries
(Hu et al., 2012). The literature review evaluates that people are from different geographical
backgrounds and cultures are associated within the service process of a business organization. In
order to maintain a good rapport with every individual member the business experts generally
tend to use some effective negotiation styles. Communication flexibility is one of the most
significant ways of reducing the gap among the people of different geographical backgrounds
and attitudes. In the literature review the author has stated that communication is one of the most
significant negotiation styles. When dealing with a particular business organization people from

54MANAGEMENT OF PROJECT
different geographical backgrounds and attitudes are associated with the business process (Jiang
et al., 2012). Therefore, business managers have to face innumerable barriers in maintaining an
effective communication with each other.
Objective 2: To evaluate the major similarities and differences among business negotiation styles
of UK and China financial services institutions
In the secondary data analysis and findings section the author has made an in-depth evaluation
about the major similarities and differences among business negotiation styles of UK and China
financial services (Chiang & Hsieh, 2012). It is also noted that the high context cultures are
usually highly concerned about their past and thus base their actions and behaviour on the past,
and this therefore means that they are very stable and are unified when it comes to their actions,
they are also very cohesive and tend to be wary of change in the society. As per the UK business
strategies and policies business leaders never intend to impose their own decision on the
employees. With the help of participative form of decision making style business managers
intend to take collective decision by involving the opinion of employees. It has been observed
that due to the lack of cultural barrier as well as communication barrier employees face
difficulties in making collaborative decision (Cogin, 2012). This particular trend has been
identified in the business process of China firms as well. People belonging to different
geographical boundaries and attitudes are associated within the business process. As per the
business trends of China financial services employees have to play a major role in rendering the
business success. In order to place the brand in International market the business employees
should have multilingual flexibility with the help of which people belonging to different
geographical backgrounds and attitudes can feel free in communication with the customer
service providers (Almond & Verba, 2015). On the other hand, those from masculine societies

55MANAGEMENT OF PROJECT
such as the UK are more interested in their personal gains and may therefore make the
negotiation process difficult by their refusal to compromise on what they want or on their
conditions and organisational goals.
At the same time, China and UK market is possessed with some different negotiation styles as
well. In the secondary data analysis chapter it has been clearly mentioned that UK firms always
prefer to hire those employees who are having enough skill and competency on that particular
business field (Desch, 2012). For an example, if an individual employee is efficient enough in
delivering financial services within proper deadline the human resource managers intend to hire
that employee even if the individual is having limited experience. On the other hand, it is also
undeniable that China business firms are concerned on the experience level of the employees.
People from diverse culture and attitudes are flexible enough in being appointed within the
business process of an organization if the employees are experienced enough. Cultural attributes
and work efficiency is not the major priority for being a part of China business organizations.
Therefore, this particular research objective has been linked with secondary data analysis part.
Objective 3: To investigate the impact of cultural differences on the business negotiation styles
of the UK and Chinese financial services institutions
The literature review has made an analysis on the overall impact of cultural differences on the
business negotiation styles of the UK and Chinese financial services institutions. In this specific
phase it has been stated that cultural differences within an organization are endowed with both
positive and negative impact (Scott & Davis, 2015). The study has focused to make a literature
review on how cultural differences create major psychological barriers while taking effective
business decision making. At the same time, due to the lack of linguistic barrier business
employees fail to exchange effective and necessary business information. In this kind of

56MANAGEMENT OF PROJECT
situation, customers fail to get effective services. At the same time, cultural differences are
having major positive impacts as well. When the business employees are associated within the
business organizations the business managers get the scope of exchanging thoughts, views and
ideas. As a result, the business managers can take an effective collective decision. This specific
objective has been linked with literature review part.
5.3 Recommendations of the Study
Based on the result presented above and the conclusions that have been drawn above, the
researcher makes several recommendations. First, it is recommended that due to the fact that
culture influences the negotiation styles adopted by international firms in a significant manner, it
is important for the management of the firms operating in the financial sectors of China and the
UK to ensure they establish the differences in the cultures of each of the countries they intend to
operate in before they can go into negotiations (Fullan, 2014). Secondly, the researcher
recommends that it is important for the negotiators of international firms to recognise and
acknowledge the fact that cultures are different in each country, and therefore the negotiation
styles adopted are different (Maslach & Jackson, 2012). Further, the study also recommends that
it is important for the negotiators of these firms operating in the financial services sectors of
China and the UK to ensure that they evaluate the differences that exist between their culture and
that of the home country of a firm they are negotiating with, as well as the different negotiation
styles that the representatives of such foreign firms may adopt in order to ensure the process of
negotiation is carried out in a smooth manner and no conflicts arise (Watts, 2015).
Finally, this study recommends that a more comprehensive study in quantitative form such as
through regression analysis should be carried out to determine the influence of culture on
negotiation styles as well as the strength of the relationship (Hogan & Coote, 2014).

57MANAGEMENT OF PROJECT
The conceptual analysis of the business negotiation process determines the advantages,
disadvantages, similarities, and differences in an elaborative way. It has been specified that the
establishment of the communication transparency is necessary for the international negotiation
process (Fullan, 2014). The open communication with the negotiation provides the clear ideas
about the terms and conditions. However, after observing the business scenario, it is necessary
for the business dealers to identify the preferable solutions in terms of developing the
international business negotiation process. This section of the study would present the
considerable recommendation for developing the effective negotiation process. The following
recommendations are provided to facilitate the remarkable negotiation process in the
international ground.
1) It is necessary to understand the issues rising from both the parties during the
conflicting scenario. Listening and understanding the issues of different party is the primary
approach that is needed to be undertaken by a skilled negotiator. It has been observed that some
of the negotiators often fail to understand the issues associated with the uncertain conflicts. In
most of the cases, they try to keep control over the conversation without listening to the entire
situation (Watts, 2015). They try to manage the situation by depending on their merits that limits
the negotiation process. Hence, it is quite essential to listen and understand the scenario and the
origin of the conflicts before indulging into any solution.
2) The negotiators must be prepared for the entire process and situation. When any of the
conflict requires solutions, it is quite important to make the extensive research from the different
sources. It is necessary to review and understand the business thoroughly by visiting the press
releases, websites, articles, and other informative sources. Searching through Google or LinkedIn
sites would be much beneficial in such cases. Reviewing the background of the person and

58MANAGEMENT OF PROJECT
company’s bio is also much essential prior to make any negotiation decisions (Hogan & Coote,
2014). On the other hand, revisiting the similar case studies and understanding the relevant
pricing and offering is also necessary for a suitable negotiation process in a financial sector.
3) Maintaining the professionalism and courteousness are the integral parts of a
structured negotiation process. The formal behaviour, professionalism, and elimination of the
abusive personality are the major concerns for the proper negotiation process (Giannetti &
Yafeh, 2012). While communicating with both the parties, the formal and professional
behavioural influence the parties to present their concerns to the negotiator. The right attitude
and behaviour help the parties feel more flexible to communicate the business deals with proper
specifications.
4) One of the most helpful aspects of the negotiation process is the clear understanding of
the deal dynamics. It is a crucial part in terms of developing any negotiation strategy. In order to
facilitate this procedure, some of the specific concerns are needed to be taken into
considerations. First, it is necessary to identify the person who will be advantaged in the
negotiation. The identification of the person who wants to deal more would ensure the
negotiation value in a dignified manner (Desch, 2012). Second, the focus on the time constraints
is necessary for developing any negotiation process. Third, the availability and functioning of the
alternatives is needed to recognize. Finally, the payment methods and advantages would be
composed.
5) Achieving the right negotiation process depends on the structured and informative
agreements. Therefore, at the primary stage, the negotiator requires drafting the first version of
the agreements. Preparing the first version of the agreement paper should depend on the first
contractual paper. This process is effective enough in identifying some of the key points and

59MANAGEMENT OF PROJECT
activities while making decisions for the negotiation process. Furthermore, the extensive changes
can be made to the contractual paper based on the future scenario.
6) In case of both UK and China, it is necessary to develop the understanding of the
sound negotiation process. As argued by Alvesson and Sveningsson (2015) selecting a suitable
consultant for the negotiation process is thus essential. The in-house expertise skills of the
efficient negotiator help in business dealings in a fruitful way. This particular recommendation
can be differed by many scholars. Therefore, obtaining ideas from the experts in the negotiation
arena would be beneficial for the future negotiation process.
7) It is necessary to develop the extensive knowledge about the cultural values of the parties.
During the negotiation process between two countries, it is the primary focus to address the
cultural concerns. Hence, gathering the adequate knowledge about the cultural values is needed
to be taken into account.
8) Maintaining and showing respect to the cultural differences is one of the fruitful ways of
establishing a structured negotiation process. When the two countries have been dealing with
each other, it is necessary to prioritize the cultural aspects at the first place. It would create the
positive impact due to which the future dealings can also be determined.
9) The identification of the proper method of bridging the cultural gaps is much fruitful for
developing the effective negotiation process. The entire research study provides the clear ideas
about the determinants created due to the cultural gaps. The efficient negotiator requires
identifying the ways that can be helpful enough in creating the linking between these gaps
(Desch, 2012). As a result, the countries would experience the beneficial negotiation process.

60MANAGEMENT OF PROJECT
10) Finally, it is essential to develop the interpersonal relationships with the parties to bring out
the best solution. The right attitude and courtesy would be preferable to develop an interpersonal
communication and relationship (Fry & Bjorkqvist, 2013). Accordingly, while undertaking any
relevant decision, the flexibility would be effectively maintained. It even ensures the scope for
the future repeat business dealings that would contribute to the economic structure of the
country.
The above preferable recommendations would be much fruitful for both China and UK.
Before undertaking any contractual negotiation process, the negotiator requires concentrating on
the mentioned aspects that would improve the business dealings with the foreign countries
(Watts, 2015). Moreover, the development of these strategies would also b help in resolving the
situational conflicts to establish the long term value in the international business negotiation
process.
5.4 Future scope of the study
Every research work is possessed with some of the major drawbacks. This particular study is
not exceptional to that. While conducting the entire research work the study has focused to
maintain data collection method by using secondary source of research work. As per the point of
view of Barry (2001), only secondary sources are not very much effective in gathering data for
evaluating the research issue. The researcher could have involved the respondents directly for
getting an immediate response from different resources. The respondents can be involved for
receiving their responses by making survey questions regarding the research issue. In this
specific study the researcher has focused to conduct only secondary data collection method by
involving some of the eminent scholars. In future, the researcher could have focused on

61MANAGEMENT OF PROJECT
conducting the entire study by involving more than 50 employees for collecting proper data and
information.
From the above research work it has been observed that only positivism research philosophy has
been used in this specific study. Positivism research philosophy is very much dependent on
repeated observation. With the help of positivism research philosophy the researcher has to wait
for mere observation. As a result, the data analyst may have to face difficulties in collecting the
authenticity of the data. However, in future the researcher could have focused in following post
positivism research philosophy. With the help of post positivism research philosophy the
researcher has focused on making keen observation on the research issue along with proper
evidence. As a result, it becomes easier for the researchers as well as practitioners to evaluate the
entire research issue properly. The entire study has focused to make an in-depth evaluation on
the overall impact of cross-cultural comparison of international business negotiation styles in
China and the UK. The researcher could have given sufficient time in the data collection process.
The entire study has been conducted in a hectic way. However, the entire research work could
have been conducted by taking sufficient time so that the researcher can collect data and
information systematically. At the same time, it can be stated that the entire process of research
has been maintained by making a proper ethical values and cultures. While collecting samples
the researcher has preferred to ask the respondents about research issue even if their response
was not very much spontaneous. In future the research should have focused on collecting the
spontaneous response from the participants instead of making any force.

62MANAGEMENT OF PROJECT
References
Ahern, K. R., Daminelli, D., & Fracassi, C. (2015). Lost in translation? The effect of cultural
values on mergers around the world. Journal of Financial Economics, 117(1), 165-189.
Akgunes, A., Austin, A.F. and Culpepper, R. (2012), Negotiations Between Chinese and
Americans: Examining the Cultural Context and Salient Factors, The Journal of
International Management Studies, vol.7, no.1, Pp. 191-200.
Almond, G. A., & Verba, S. (2015). The civic culture: Political attitudes and democracy in five
nations. Princeton university press.
Alvesson, M., & Sveningsson, S. (2015). Changing organizational culture: Cultural change
work in progress. Routledge.
Anderson, N., Potočnik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding framework. Journal of
Management, 40(5), 1297-1333.
Baicu, M. (2014), European cross cultural differences VS. German and Romanian style
negotiations, International Journal for Innovation Education and Research, vol.2, no.5, Pp.
51-57.
Bloom, N., Sadun, R., & Van Reenen, J. (2012). The organization of firms across countries. The
quarterly journal of economics, 127(4), 1663-1705.
Büschgens, T., Bausch, A., & Balkin, D. B. (2013). Organizational culture and innovation: A
meta‐analytic review. Journal of product innovation management, 30(4), 763-781.

63MANAGEMENT OF PROJECT
Chiang, C. F., & Hsieh, T. S. (2012). The impacts of perceived organizational support and
psychological empowerment on job performance: The mediating effects of organizational
citizenship behavior. International journal of hospitality management, 31(1), 180-190.
Chmielecki, M. (2013) Conceptual negotiation metaphors across cultures–research findings from
Poland, China, The United States and Great Britain. Journal of Intercultural Management,
vol.5, no.3, pp. 103–118
Cichosz, I (2016) Negotiation Differences between China and Poland, Journal of Intercultural
Management, Vol. 8 | No. 3, Pp. 55–68.
Cogin, J. (2012). Are generational differences in work values fact or fiction? Multi-country
evidence and implications. The International Journal of Human Resource
Management, 23(11), 2268-2294.
Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage
learning.
Desch, M. C. (2012). Culture clash: assessing the importance of ideas in security
studies. Culture, 23(1).
Fry, D. P., & Bjorkqvist, K. (Eds.). (2013). Cultural variation in conflict resolution: Alternatives
to violence. Psychology Press.
Fullan, M. (2014). Leading in a culture of change personal action guide and workbook. John
Wiley & Sons.
Giannetti, M., & Yafeh, Y. (2012). Do cultural differences between contracting parties matter?
Evidence from syndicated bank loans. Management Science, 58(2), 365-383.

64MANAGEMENT OF PROJECT
Gray, S. (2012), A Study of Negotiation styles between business managers from UK and Indian
cultural backgrounds, Dissertation in fulfilment of Bachelor of Arts (Hons) in international
Business Management, University of Wolverhampton Business School
Guang, T and Trotter, D (2012), Key issues in cross-cultural business communication:
Anthropological approaches to international business, African Journal of Business
Management Vol.6, no.22, pp. 6456-6464.
Gunia, B.C, Brett, J.M, Nandkeolyar, A.K and Kamdar, D (2011) Paying a price: Culture, trust
and negotiation consequences. The Journal of applied psychology, vol.96, no.4, pp. 774 –
789.
Hogan, S. J., & Coote, L. V. (2014). Organizational culture, innovation, and performance: A test
of Schein's model. Journal of Business Research, 67(8), 1609-1621.
Hu, Q., Dinev, T., Hart, P., & Cooke, D. (2012). Managing employee compliance with
information security policies: The critical role of top management and organizational
culture. Decision Sciences, 43(4), 615-660.
Imai, L and Gelfand, M.J (2010) The culturally intelligent negotiator: The impact of cultural
intelligence on negotiation sequences and outcomes, Organizational Behaviour and Human
Decision Processes, vol.112, no.2, Pp. 83 - 98
Jacobs, R., Mannion, R., Davies, H. T., Harrison, S., Konteh, F., & Walshe, K. (2013). The
relationship between organizational culture and performance in acute hospitals. Social
science & medicine, 76, 115-125.

65MANAGEMENT OF PROJECT
Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2012). How does human resource management
influence organizational outcomes? A meta-analytic investigation of mediating
mechanisms. Academy of management Journal, 55(6), 1264-1294.
Jiang, Y. (2013). Business negotiation culture in China: A game theoretic approach,
International Business Research, vol.6, no.3, Pp.109-116.
Kothari, C. R. (2006), Research Methodology: Methods and Techniques. Cengage Learning,
London.
Lee, K., Yang, G., Graham, J.L. (2012) Tension and trust in international business negotiations:
American executives negotiating with Chinese. The Journal of International Management
Studies, vol. 7, no 1, Pp.1-8.
Lick, P and Hoo, S. (2016), Cross-cultural Communication Model in International Business,
ISSC 2016 : International Soft Science Conference, The European Proceedings of Social and
Behavioural Sciences.
Liu, M. and Wilson, S.R. (2011), The effects of interaction goals on negotiation tactics and
outcomes: A dyad-level analysis across two cultures, Communication Research, vol.38,
no.2, Pp.248–277.
Martin, J.N. and Nakayama, T.K. (2013). Intercultural communication in contexts (6th Ed.).
McGraw-Hill Companies, Inc., New York.
Maslach, C., Leiter, M. P., & Jackson, S. E. (2012). Making a significant difference with burnout
interventions: Researcher and practitioner collaboration. Journal of Organizational
Behavior, 33(2), 296-300.

66MANAGEMENT OF PROJECT
Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing cultural differences.
Routledge.
O'Reilly, C. A., & Tushman, M. L. (2013). Organizational ambidexterity: Past, present, and
future. The Academy of Management Perspectives, 27(4), 324-338.
Przytuła, S., Rozkwitalska, M., Chmielecki, M., Sułkowski, Ł., & Basinska, B.A. (2015) Cross-
Cultural Interactions between Expatriates and Local Managers in the Light of Positive
Organizational Behaviour. Social Sciences, vol.86, no.4, Pp.14-24.
Sarkis, J. (2012). A boundaries and flows perspective of green supply chain management. Supply
Chain Management: An International Journal, 17(2), 202-216.
Saunders, M., Lewis, P. and Thornhill, A. (2007). Research methods for business students.
Harlow, England: Financial Times/Prentice Hall.
Schaubroeck, J. M., Hannah, S. T., Avolio, B. J., Kozlowski, S. W., Lord, R. G., Treviño, L.
K., ... & Peng, A. C. (2012). Embedding ethical leadership within and across organization
levels. Academy of Management Journal, 55(5), 1053-1078.
Schneider, B., Ehrhart, M. G., & Macey, W. H. (2013). Organizational climate and
culture. Annual review of psychology, 64, 361-388.
Scott, W. R., & Davis, G. F. (2015). Organizations and organizing: Rational, natural and open
systems perspectives. Routledge.
Shi, X. and Wang, J. (2011), Cultural distance between China and US across GLOBE Model and
Hofstede Model, International Business and Management, vol.2, no.1, Pp. 11-17.2

67MANAGEMENT OF PROJECT
Soriano, M.A. (2014). United Arab Emirates and Mexico: Do’s and dont’s in negotiation
strategies: A Mexican perspective. The Business and Management Review, vol.5, no.1, Pp.
378-385.
Stromquist, N. P., & Monkman, K. (Eds.). (2014). Globalization and education: Integration and
contestation across cultures. R&L Education.
Talhelm, T., Zhang, X., Oishi, S., Shimin, C., Duan, D., Lan, X., & Kitayama, S. (2014). Large-
scale psychological differences within China explained by rice versus wheat
agriculture. Science, 344(6184), 603-608.
Thomas, D. C., & Peterson, M. F. (2017). Cross-cultural management: Essential concepts. Sage
Publications.
Tu YT, and Chih HC (2011). An Analysis on Negotiation Styles by Religious Beliefs. J. Int.
Bus. Res., vol.4, no.3, Pp.243-253
Tu YT, Lin SY, Chang YY (2011). A cross-cultural comparison by individualism/collectivism
among Brazil, Russia, India and China. International Business Research, vol.4, no.2, Pp.
175-182.
Tu, Y. (2015) Cross-Cultural Comparison of Brazil, Russia, India, and China (BRIC) on
Negotiation Styles, Anthropologist, vol.19, no.2, Pp. 457-467.
Vaara, E., Sarala, R., Stahl, G. K., & Björkman, I. (2012). The impact of organizational and
national cultural differences on social conflict and knowledge transfer in international
acquisitions. Journal of Management Studies, 49(1), 1-27.

68MANAGEMENT OF PROJECT
Vaccaro, I. G., Jansen, J. J., Van Den Bosch, F. A., & Volberda, H. W. (2012). Management
innovation and leadership: The moderating role of organizational size. Journal of
Management Studies, 49(1), 28-51.
Watts, R. L. (2015). Comparing Federal Political Systems. Understanding Federalism and
Federation, 11.
Yu, T.T and Heng, C.C (2011) An analysis on negotiation styles by religious beliefs,
International Business research, vol.4, no.3 pp.243-253.