Have you ever come back from a meeting with an international customer, supplier or colleague and remarked, perhaps in exasperation, about the arrogance/stubbornness/inflexibility of people of their nationality? Of course you haven’t. That would be an outrageous thing to even think, let alone say—especially in the context of business networking, where understanding and respecting cultural differences is key to building trust and fostering strong professional relationships.
The Global Business Landscape
But conversely, perhaps you have remarked with admiration on the efficiency and orderliness, or spontaneity and creativity, or warmth and generosity, of nationalities? That arguably feels more acceptable in that it embraces the notion of cultural diversity and celebrates the fact that the tapestry of humankind is so rich and varied. Understanding these cultural nuances is essential for building meaningful relationships in business networking.
Irrespective of whether either of those two scenarios resonates with you, the fact is that the world is getting smaller. The march of globalization, the development of emerging markets, increased migration, the influence of social media, enhanced opportunities to travel – all of these factors mean that we are exposed to people and cultures other than our own in ways that were unimaginable 20 or 30 years ago.
To put this into a personal context, my youngest son is 17 and has by a conservative estimate visited 20 different countries on 4 different continents. At his age, I had left Ireland once – for a week’s holiday in Scotland!
Impact of Cultural Differences Today
Source: Freepik
The multinational nature of the modern business world has implications for negotiators as well. In the past year alone, we have worked with clients in over 61 different countries, and we often get asked the question, “What is the impact of cultural difference on negotiations?” In some ways the answer is, “Not as significant as it used to be.” When business started to internationalize in the 1960s and ‘70s, there was nowhere near the level of familiarity with other cultures that exists today. This growing familiarity has not only transformed international negotiations but also revolutionized business networking, enabling professionals to connect across borders with greater ease and understanding.
Business people and negotiators were often clueless about the unwritten rules and customs of other societies, a gap that also extended to business networking practices. There are a host of stories about failed deals, imploded relationships, and disastrous misunderstandings. Among my favourites is the launch of a vacuum cleaner in the USA by Swedish manufacturer Electrolux with the literal translation of their Swedish strapline, “Nothing sucks like an Electrolux”. Unsurprisingly, the brand didn’t really take off with US consumers.
So where does that leave us today? Is cultural difference still something an international negotiator needs to factor into their thinking as they negotiate a deal with a foreign counterpart? Well, the answer is still “yes”, but there are a few caveats. In global business networking and negotiations, cultural awareness plays a critical role, though it must be balanced with individual-level understanding.
First, we must never forget that we negotiate with people, and a keen understanding of an individual’s character and negotiating style will yield more insight than a comprehensive knowledge of their national culture.
The knowledge that your counterparty is Italian, for example, is of less importance than an understanding of their priorities in any given deal, their level of empowerment, the quality of their BATNA, the size of their ego and multiple other considerations.
