Etiquette and Process Puzzles of Negotiating Business in China: A Questionnaire

James K. Sebenius; Cheng (Jason) Qian

Working Paper | HBS Working Paper Series | 2008

Etiquette and Process Puzzles of Negotiating Business in China: A Questionnaire

by James K. Sebenius and Cheng (Jason) Qian

Abstract

Cultural differences can affect negotiations in many ways, from influencing the basic motivations and perceptions of the players to guiding the surface aspects, such as etiquette, protocol, and process, of business interactions. Navigating the challenges of these surface behavioral issues is useful to plumb some of the deeper cultural factors and differences in governance and decision-making of cross-border business negotiation. As suggested by an iceberg analogy, though etiquette, protocol, and deportment comprise the visible tip, they might be linked to more deeply rooted, less obvious forces that are fully capable of sinking the ship. This working paper, through a questionnaire format-intended as an instrument to collect data from a range of people with varying China-related negotiating experience, presents a series of situations of a typical Sino-foreign business negotiation to address both the surface and the root cultural factors. This questionnaire will serve not only to evaluate subjects' appreciation for Chinese culture as it bears on negotiation, but also to better understanding of the process aspects of cross-border negotiation in general.

Keywords: Decision Making; Cross-Cultural and Cross-Border Issues; Governance; Questionnaires; Negotiation Process; Behavior; China;

Language: English

Format: Print

19 pages

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Citation:

Sebenius, James K., and Cheng (Jason) Qian. "Etiquette and Process Puzzles of Negotiating Business in China: A Questionnaire." Harvard Business School Working Paper, No. 09-077, December 2008.

In 1976, a growing crisis in Southern Africa drew the attention of United States Secretary of State Henry A. Kissinger. White Rhodesian leader Ian Smith's refusal to accede to black majority rule threatened to widen into a regional conflict involving apartheid South Africa and newly independent leftist African states. Kissinger and others feared that the region was on the brink of becoming a new battleground in the Cold War. In light of these developments Kissinger decided to intervene, seeking a negotiated solution that might bring about a peaceful end to minority rule. The account in this case carefully describes—but does not analyze nor draw lessons from—these challenging circumstances.

In 1976, United States Secretary of State Henry A. Kissinger conducted a series of intricate, multiparty negotiations in Southern Africa to persuade white Rhodesian leader Ian Smith to accede to black majority rule. Conducted near the end of President Gerald Ford’s term in office and against substantial U.S. domestic opposition, Kissinger’s efforts culminated in Smith’s public announcement that he would accept majority rule within two years. This set the stage for the later Lancaster House negotiations that resulted in the actual transition to black majority rule. The account in this case carefully describes—but does not analyze nor draw lessons from—these challenging negotiations.

A remarkable 1993 negotiation rocked the world of American football with aftershocks that have directly shaped today’s entertainment and media landscapes and even our polarized politics. In December of that year, Rupert Murdoch’s fledgling Fox Network unexpectedly displaced longtime incumbent CBS as the host of the National Football League’s flagship programming. Fox’s negotiating success seemed most unlikely given that CBS had regularly renewed these NFL rights since 1956, enjoyed a good relationship with the NFL, sported an acclaimed broadcast unit, and had affiliates in virtually all important U.S. markets. Yet acquisition of these NFL rights directly enabled the expansion of Fox, then a minor broadcaster, into the media behemoth of today. For many observers, Fox’s NFL “heist” looked like the result of a simple move: Fox offered more money than CBS. A closer analysis, however, suggests a far more complex reality with ten broader lessons for negotiators facing challenging situations.

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Etiquette and Process Puzzles of Negotiating Business in China: A Questionnaire

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