Hong Kong Versus U.S. Negotiations: Effects of Culture,Alternatives, Outcome Scales,and Mediation1

This study investigates the effects of culture, BATNA (best alternative to a negotiated agreement), outcome scales, and mediation on negotiation outcomes. Six hundred three subjects from 2 countries (288 from Hong Kong and 315 from the United States) participated in 2-party negotiations that were either mediated or observed by a third party. In these negotiations, the Hong Kong negotiators obtained higher joint outcomes than did their U.S. counterparts. Also, in both Hong Kong and the United States, negotiators with a high BATNA obtained larger individual outcomes than did those with a low BATNA. Finally, mediation resulted in higher joint outcomes than did no mediation and had a stronger effect in US. (vs. Hong Kong) negotiations.     

Determinants of Mediator Behavior: A Test of the Strategic Choice Model1

The present study simulated an organizational dispute to test 12 hypotheses about mediator behavior that were derived from the strategic choice model of mediation. This model is based on the assumption that mediators have four basic strategies to resolve disputes: (a) integrate, which involves a search for mutually acceptable outcomes; (b) press, which involves lowering one or both parties' aspirations; (c) compensate, which involves offering positive benefits in exchange for concessions; and (d) inaction, which involves letting the parties handle the dispute by themselves. The major proposition of the model is that two factors, the mediator's assessment of the likelihood of a mutually acceptable agreement and the mediator's concern for the parties' aspirations, interact to predict mediator behavior. Nine of the 12 hypotheses derived from the model were supported. Pressing by mediators occurred most when mediators had a low estimate of the likelihood of agreement in combination with a low concern for the parties' aspirations. Compensating occurred most when mediators had a low estimate of the likelihood of agreement in combination with a high concern for the parties' aspirations. Inaction occurred most when the mediators' estimate of the likelihood of agreement was high and their concern for the parties' aspirations was low. Integrating occurred most when the mediators had a high concern for the parties' aspirations.     

Organizational Mediators Siding With or Against the Powerful Party?1

Instead of being impartial, a mediator may side with one party as a function of the disputants' power differences, the mediator's legitimacy judgments, or the disputants' capacity to sanction the mediator. According to the power balancing theory, a mediator sides with the party that has a power disadvantage vis-à-vis the other party. The theory on siding postulates that the mediator sides with the party having more legitimate claims and/or more sanction capacity. A questionnaire study showed that organizational mediators side with the less powerful rather than the more powerful party, especially when this weaker party has equal rather than less capacity to sanction the mediator. Thus, the tendency to balance power is moderated by the mediator's self-interest. Additionally, mediators tend to favor the party they see as more legitimate.     

Expectancy Disconfirmation and Negotiator Reactions Across Negotiation Episodes

In the negotiation literature, relatively little attention has been paid to the impact of negotiator goals and expectancy disconfirmations on negotiator behaviors and affective outcomes. We found that negotiators with larger negative expectancy disconfirmations were less satisfied; set lower targets for a subsequent negotiation; and were more likely to settle with the other party in the second negotiation, rather than requiring third-party imposition of a settlement. Those negotiators who settled had more positive feelings and perceptions about the negotiation and set higher targets for a third negotiation. Further, negotiators who experienced repeated high levels of negative expectancy disconfirmation also experienced the greatest decrements in their feelings and perceptions across negotiation episodes. Implications of study findings for future research are discussed.     

Market forces,negotiator frames and transaction outcomes

Although implicit framing differences have been advanced as an explanation of the buyers advantage, two necessary preconditions must be met to sustain this model: a demonstration that negatively-framed negotiators are advantaged in negotiations and that buyer role labels invoke a negative frame. A modification of Neale, Northcraft, Magliozzi and Bazerman s (1986) simulation created a role-neutral setting in which positively-framed negotiators bargained against negatively-framed negotiators, thus testing the first of these preconditions. Experiment 1 found no differences in the outcomes of positively- and negatively-framed negotiators, a finding that could be attributed to relatively low market competitiveness. A second experiment, by creating power imbalanced negotiation markets, sought to increase market distributiveness and strengthen framing effects. Results showed that both high power and negatively-framed negotiators were significantly advantaged, providing conditional support for the implicit framing model, However unlike role, frame interacted with power suggesting that the two variables are not functionally equivalent. These findings are interpreted to suggest that factors other than implicit framing differences account for the buyers advantage. More generally these results suggest that frame is responsive to situational variables and that such variables, by influencing negotiation processes, mediate the relationship between negotiator frames and negotiation outcomes.     

Stereotype reactance at the bargaining table: the effect of stereotype activation and power on claiming and creating value

Two experiments explored the hypothesis that the impact of activating gender stereotypes on negotiated agreements in mixed-gender negotiations depends on the manner in which the stereo-type is activated (explicitly vs. implicitly) and the content of the stereotype (linking negotiation performance to stereotypically male vs. stereotypically female traits). Specifically, two experiments investigated the generality and limits of stereotype reactance. The results of Experiment 1 suggest that negotiated outcomes become more one-sided in favor of the high power negotiator when masculine traits are explicitly linked to negotiator effectiveness. In contrast, the results of Experiment 2 suggest that negotiated outcomes are more integrative (win-win) when feminine traits are explicitly linked to negotiator effectiveness. In total, performance in mixed-gender negotiations is strongly affected by the cognitions and motivations that negotiators bring to the bargaining table.     

Culture in the context of intercultural negotiation.

This study explores culture's effect on behaviors and outcomes in intercultural negotiation and examines how those effects are moderated by role. Eighty U.S. and international students took part in a previously developed negotiation task (Pruitt, 1981) and completed Hui and Triandis's (1986) individualism‐collectivism (INDCOL) scale. Negotiation interactions were coded for information sharing, offers, and distributive tactics. Findings show that a negotiation dyad's collectivism is positively associated with higher joint profit. The effects of culture on both communication behaviors and joint outcomes, however, differ by role of the negotiator. In particular, seller collectivism has larger and more consistent effects on communication behavior and joint profit than buyer collectivism. Results support a ‘culture in context’ perspective of negotiation that takes into account negotiator qualities, contextual and structural features of the negotiation, and mediating processes in addition to cultural values.     

The three faces of Eve: Strategic displays of positive,negative, and neutral emotions in negotiations

In a series of laboratory experiments, we tested the influence of strategically displaying positive, negative, and neutral emotions on negotiation outcomes. In Experiment 1, a face-to-face dispute simulation, negotiators who displayed positive emotion, in contrast to negative or neutral emotions, were more likely to incorporate a future business relationship in the negotiated contract. In Experiment 2, an ultimatum setting, managers strategically displaying positive emotion were more likely to close a deal. This effect was mediated by negotiators’ willingness to pay more to a negotiator strategically displaying positive versus negative emotions. In Experiment 3, display of positive emotion was a more effective strategy for gaining concessions from the other party in a distributive setting. Negotiators made more extreme demands when facing a negotiator strategically displaying negative, rather than positive or neutral, emotions. Implications for strategic display of emotion in negotiations are discussed.     

Culture in the Mediation of International Disputes

Unlike most treatments of culture in international diplomacy, this article suggests that culture can play a positive role in the mediation of international disputes. Cultural ties between the mediator and one or both of the disputants can facilitate mediation by, among other things, enhancing the mediator's acceptability to the parties, and enhancing the belief that the mediator can deliver concessions and agreements. Moreover, a mediator who is closer to one side than the other can be effective in mediation, especially when the mediator acts in an even‐handed manner. Data from laboratory research on mediation, as well as anecdotal evidence, support this view.     

Unpacking Cultural Variations in Peak-Experiences: Cross-Cultural Comparisons of Early Childhood Recollection Between Hong Kong and Brazil

In this cross-cultural study, 115 Hong Kong Chinese and 117 Brazilian college students described a childhood peak-experience (occurring before the age of 14) and provided a self-rating on its enduring impact. Among various categories of peak-experiences, both Hong Kong Chinese and Brazilians reported interpersonal joy most frequently; the second most frequently reported category was external achievement for the Hong Kong sample and developmental landmark for the Brazilian sample. Compared with Brazilians’ narratives, those of Hong Kong Chinese were more social-focused, involving greater number of other people, but less specific. These characteristics of autobiographical memory, i.e., memory focus (self vs. social), memory specificity (specific vs. general), and the number of other people involved, significantly mediated the relation between culture and interpersonal joy. The present findings have extended research on peak-experiences to cross-cultural contexts and incorporated measures of autobiographical memory to unpack cultural variations in these two collectivist societies.     

Disconnecting outcomes and evaluations: the role of negotiator focus

Three experiments explored the role of negotiator focus in disconnecting negotiated outcomes and evaluations. Negotiators who focused on their target prices, the ideal outcome they could obtain, achieved objectively superior outcomes compared with negotiators who focused on their lower bound (e.g., reservation price). Those negotiators who focused on their targets, however, were less satisfied with their objectively superior outcomes. In the final experiment, when negotiators were reminded of their lower bound after the negotiation, the satisfaction of those negotiators who had focused on their target prices was increased, with outcomes and evaluations becoming connected rather than disconnected. The possible negative effects of setting high goals and the temporal dimensions of the disconnection and reconnection between outcomes and evaluations are discussed.     

Joint Effects of Assigned Goals and Training on Negotiator Performance

This study examined the joint effects of assigned goals and training on negotiator performance. Undergraduate business students participated in two sessions of a competitive market simulation and were assigned to one of three levels of goals: do-your-best, specific/emy, or specific/difficult. In the training condition, an introductory lecture on bargaining strategies was presented between the two market sessions; subjects in the control conditions did not attend the lecture. In the first market session, specificldifficult goals improved mean profit per agreement but at the expense of number of agreements negotiated and total profit. In the market session after training, negotiators who were assigned specific goals (whether difficult or easy) negotiated agreements of higher joint value, thereby enhancing both mean personal profit per agreement and total profit. There were no differences between the two market sessions in the control group. The implications of these findings and future research directions are discussed.     

Outcome Satisfaction in Negotiation: A Test of Expectancy Disconfirmation

The post-settlement processes that occur after negotiation outcomes are known have not been extensively studied. We propose one such process model of satisfaction using expectancy disconfirmation principles. Based on measurement of profit expectations before a bargaining session, knowledge of the profit outcomes achieved, and comparison operations between the two, analysis of data obtained from 42 negotiators provided evidence for this paradigm in negotiators′ post-settlement cognition. Expectations of one′s performance and profits attained had opposite effects on disconfirmation and later satisfaction judgments. High expectations served to decrease satisfaction and high profit outcomes had the effect of increasing satisfaction via their fully mediated effects through expectancy disconfirmation. Moreover, a negotiator′s willingness to negotiate with the partner again is shown to be primarily a function of satisfaction. Implications of these findings are discussed.     

The Impact of Alcohol on Negotiator Behavior: Experimental Evidence1

Business‐related drinking is an important organizational and managerial activity with particular relevance to the negotiation process. This paper investigates the influence of a moderate amount of alcohol on negotiator behavior and negotiated outcomes. We conducted 2 negotiation studies involving inebriated and sober participants, and found that inebriated negotiators used more aggressive tactics, made more mistakes, and reached less integrative agreements than did sober negotiators. Across both studies, we found that inebriated negotiators were unaware that alcohol had affected their negotiations.     

Applying Western models of volunteering in Hong Kong: The role of empathy,prosocial motivation and motive–experience fit for volunteering

The present research investigates the applicability of prominent Western volunteering frameworks in Hong Kong. Two cross‐sectional surveys involving a total of 268 respondents were conducted. In Study 1, we tested a model of volunteering among 149 Hong Kong Chinese adult individuals (M_age = 34.8 years; 51.7% female) that examines antecedents and outcomes of voluntary engagement. Results show that prosocial motivation relates to volunteering, and that volunteering in turn predicts life satisfaction. Unexpectedly, and unlike studies in Western settings, other‐oriented empathy was not related to volunteering. Study 2 tests the propositions of the Volunteer Process Model (VPM) among 119 Hong Kong Chinese volunteers (M_age = 36.9 years; 58.0% female). Findings largely support the VPM: our results indicate that the link between motives, voluntary service length and frequency is mediated by satisfaction with volunteering. Moreover, findings suggest that a fit between motives and experience seems relevant for increasing volunteers' satisfaction with their service. Results of both studies suggest that Western volunteering models can be applied to volunteering in East Asian cultures when culture‐specific adaptations are considered.     

Myopic prediction, self-destructive secrecy, and the unexpected benefits of revealing final deadlines in negotiation

Three studies explored the psychology of social prediction by examining negotiators’ predictions of the effects of time pressure and comparing those predictions with actual outcomes. The results show that revealing final deadlines in negotiation can lead to better outcomes for the negotiator with the deadline because revelation speeds concessions by the other side. However, both naïve and experienced negotiators consistently predicted the opposite. As a result, when given the choice of revealing their final deadlines to their negotiating opponents, negotiators chose not to. The reasons for these erroneous expectations can be explained by myopic processes of prediction in which people anticipate the effects of constraints like deadlines more on their own behavior than on the behavior of others.     

A Comparison of the Effectiveness of Substantive and Contextual Mediation Tactics1

The effectiveness of three mediation tactics was compared in two laboratory studies. It was hypothesized that a content mediation procedure which involved identifying the priorities of both parties and suggesting a trade-off of low for high priority issues would be most effective in helping to resolve the dispute, followed by an issue identification mediation procedure in which priorities were identified but no suggestions were made. A positive framing mediation procedure in which the benefits of a negotiated settlement were emphasized was expected to be somewhat less effective. In Study 1, 64 students played the role of company negotiator and interacted with a programmed citizen group negotiator. All three mediation tactics produced more satisfactory outcomes (higher joint payoffs) than did a no-mediation condition. In Study 2, 46 pairs of students negotiated with one another and received content mediation, issue identification mediation, positive framing mediation, or no mediation. Negotiators receiving content mediation achieved more satisfactory outcomes (higher joint profits) than did negotiators in the other 3 conditions. Results are discussed in terms of a contingency model of mediation effectiveness.     

The real me: Authenticity,interpersonal goals,and conflict tactics

Dispositional authenticity is associated with positive intra- and interpersonal outcomes, yet how authenticity relates to conflict solving strategies has not been examined. The present study aims to explore the relationship between authenticity and conflict solving strategies in close friendships and proposes that interpersonal goals (i.e., compassionate goals and self-image goals) might mediate the relationship. Three hundred sixty-three Taiwanese college students completed a survey package. Results showed that authenticity was positively associated with strategies that promote the needs of both oneself and one's friend (i.e., integrating and compromising) while negatively, or not, associated with those that don't concern one's own needs (i.e., obliging) or one's friend's needs (i.e., dominating and avoiding). Further, compassionate goals mediated the relationship between authenticity and integrating, compromising, and dominating strategies, while suppressing the relationship between authenticity and avoiding and obliging strategies. Self-image goals mediated only dominating and avoiding strategies.     

"Inside Information" and Negotiator Decision Behavior

In negotiation, information about the other party may be a source of strength or weakness, depending on the context, the type of information, its availability and quality, and how a negotiator uses it. An empirical study examines the way negotiators use "inside" information specifically designed to increase bargaining strength. The scoop-privileged information about the other party′s deadline-does not inform negotiators about possible deals; rather, it suggests a process of negotiating agreement. Misuse of the scoop, therefore, poses potential costs that may diminish its possible advantages. In a two-party negotiation exercise, access to inside information affected negotiators′ thoughts and behaviors. It enhanced their feelings of success and shifted the criterion for success away from final price toward a relative, interpersonal standard. Furthermore, informed negotiators used the scoop appropriately to manage the negotiation process and enhance both joint and individual profits.     

The culture‐negotiation link.

Scholars have only recently begun to assess the strength with which culture affects negotiator communication, as compared with contextual or structural features of business negotiations. Although prior studies reveal important cross‐cultural differences in national negotiating style, they may not help us understand intercultural (mixed‐culture) settings. The crucial question is how heavily are international negotiators influenced by their own cultural values? When negotiating with a culturally disparate partner, what are the separate and cumulative effects of culture and contextual variables on negotiator communication? To answer these questions, the effect of culture (here, individualism‐collectivism) on integrative (information exchange) and distributive (fixed‐sum errors) negotiating is assessed in 32 intercultural dyads. In addition, the contextual effects of role (buyer vs. seller), preconceptions about negotiating (anticipated competition), and mutual adaptation (interdependence in information exchange) are examined. Preliminary results suggest that role requirements influence negotiators more heavily than culture. Supplemental analyses point to some potentially interesting buyer‐seller differences and suggest that information exchange is more a function of reciprocity than of cultural values.