Influence of culture on reactions to negotiation deadline

Abstract

Prior research shows that Western and Eastern individuals behave differently in negotiations due to cultural differences in values, norms, and strategies. In this study we examined cultural differences in how deadlines affect reaching an agreement in negotiations. We also examine various factors that determine negotiators' strategies, such as the number of issues negotiators focus on or the importance placed on relationship building or tasks. Using cultural theories involving time perception we generated hypotheses and tested in an in-lab negotiation experiment with varying time deadline. Our sample included East Asian and North American negotiators engaging in an intracultural negotiation. Our results showed significant main effects. East Asian negotiators were more focused on relationship building and long-term plans than North American negotiators, who were focused on the tasks and short-term plans. We discuss interactions of culture and deadline on negotiation process and performance.