MIMT 5210:

Managing Global Complexity

Session 3:
Cross-cultural negotiation strategies
(continue) &
Dispute Resolution
Melody M. Chao
Spring 2023
Reminder
Reflection paper (see syllabus for details)
1. Analyze an international or cross-cultural
situation about which you have personal
knowledge, or have access to participant (e.g.,
working with a team with diverse background,
managing disputes among different parties,
closing deals with clients, etc.); or
2. Analyze an international or cross-cultural conflict
resolution situation in which you have interest,
but will have to use publicly available
documents.
 The Roadmap
Yerba Mate Sweet Shop Myti-Pet

Negotiation Culture & Dispute

basics negotiation resolution

Tipal Dam SHARC

Social Use of third

Teamwork dilemma party

Government
at the table
Session 3’s focus
 Discussion
Simulation exercise: Sweet Shop
Culture & negotiation strategies
Use of S&O, Q&A, MESOs strategies
Role of cultural stereotypes
Improve effectiveness in intercultural
negotiation
Our beliefs matter!

 Dispute resolution
Myti-Pet
Let’s refresh our memory…
 Negotiation basics
 Six main dispute resolution processes
 Dispute resolution vs. deal making
 Yerba Mate (Negotiation Basics)
 Anchoring
 Aspiration vs. Reservation points
 BATNA
 Integrative vs. distributive negotiation
 Yerba Mate vs. Sweets Shop
Being able to identify the situations we are in &
issues involved
Recognize the many layers of “culture” (role-
based, institutional, societal, national, etc.)
Use of S&O, Q&A, MESOs strategies
Role of cultural stereotypes
Improve effectiveness in intercultural negotiation
Our beliefs matter!
Brief Recap:
Discussion questions
Yerba Mate vs. Sweets Shop
How are they similar or different?
Parties involved?
Deal making vs. dispute resolution?
Issues involved?
Your goals?
Distributive or integrative?
Anchoring effect?
Your partners?
Our Sweet Shops
How many pairs reached an
agreement? Any impasses?
What are the priorities & preferences
of the Bakery/ Ice Cream Store?
Which issues are distributive /
integrative in nature?
Range of points?
Your own reflection: Did your
strategies help you to score high
point? Why and why not?
8 Staking Out the Bargaining Zone

Bakery Owner’s Ice Cream Owner’s Bakery Owner’s Ice Cream Owner’s
Aspiration Reservation Reservation Aspiration
Option Option Option Option
 [see sample planning doc]
Discussion Questions

Which issues are of same priority to both

parties?

Which issues are of same preference to

both parties?

• Planning is important!
• Articulate our assumptions
• Remind us to test assumptions!
Discussion Questions
Which issues are distributive in
nature?

Which issues are integrative in

nature (allow trade-offs)?
Priorities/Payoffs – Extra Issues
Discussion Questions [see outcome summary]

 Range of Points?
• Min no. of points (impasse):
• Individual Max.:

• Even-split Individual Max:

• Integrative Individual Max.:

• Integrative Joint Dyad Max:

• Distributive Joint Dyad Max:

• See Outcome Analyses!!!

• How did we do? How did the others do?
Discussion Questions

Let’s decide together: Incentive

for top performers.
The “best” performance?
Discussion questions
Your own reflection: Did your strategies help
you to score high point? Why and why not?
Substantiation & Offer (S&O)
Question & Answer (Q & A)
Multiple Equivalent Simultaneous Offer
(MESO)
 Other factor:
Social Value Orientation
 Website & delivery issues:
 Benefit one party without hurting the other in terms
of absolute value
 Not critical issues anyway?
 Remember this?

A B C
You get 550 500 500
Other gets 300 100 500
More from previous years…
What is your impression of your Sweet
Shops partner?
From past simulation (Masters-UG)…
Young
Easy-going
Not assertive
Innocent
Cooperative
Kind (“Almost make me feel bad when I
felt like I have asked for too much!)
Yielding (“Say yes to everything!)
Is it good?
What is culture?
 Characteristics of a group
 Usually people think about culture in
terms of national / ethnic culture
 But it can be …
 Cultural prototype
 Describes the tendency that people in a
culture act (e.g., dignity, face, & honor)
 Cultural stereotype
 A belief that everyone from
a given culture will be like
that culture’s prototype
Brett:
Culture  Interests/ Priorities;
strategies  …

But…
Mere perception of the other
culture is sufficient to influence
your strategies & outcomes!!!
Cultural stereotypes…
the challenging issue?
Beliefs matter?
Any solutions to address stereotype issue…?

Know your own standard

Dissociate from cultural stereotypes
Individuation
Manage how readily the perception
came to mind
Make use of S&O, Q&A, & MESO
strategically!
Questions?

Which aspects of our discussion thus far

tie in with “culture”?
A common question… Traditional “cross-
cultural training”
 What is the “best practice”?
 Not ONE practice
 Not ONE fixed rule
 Culture is dynamic (It is everywhere, surrounding us)
 Focus on options and range of practices (like tools
in toolbox)
 If there is no one “best practice”, and when each
person and each of our interaction is unique,
what is it that we can learn… beyond knowing “it
depends”?
The mindset we need…
 If there is no one “best practice”, and when each
person and each of our interaction is unique, what is it
that we can learn… beyond knowing “it depends”?
 Welcome to the reality!
 It is about probability!
 Never 100%!
That’s why we need to “gather data”, and…
To adjust / update our “database” (in our mind)
Learn from trial-and-error to increase our precision
 E.g., Medical example…
Statistics as an information source
Know the probability!
Beat the probability!
“Culture is probability. People are possibilities!”
Another challenging issues?
How to improve Information exchange and creativity in
intercultural negotiation effectiveness?
Recognize flexibility in “people” in the
context
Remember these?

Beliefs in malleable vs. fixed cultural attributes

 A common reaction…

Implicit beliefs
measures

Mean = 3.46
Median = 3.50
SD = .98
N = 187

Malleable Fixed
Beliefs Beliefs
 A common reaction…

Implicit beliefs
measures

A previous class

Malleable Fixed
Beliefs Beliefs
 A common reaction…

Implicit beliefs
measures

Our class

Malleable Fixed
Beliefs Beliefs
Findings from previous simulations:
Individual Level: Individual Gain
• 2 (Conditions: Intercultural vs. Intracultural) X Beliefs

Implicit Culture Beliefs (+1 SD; malleable) Implicit Culture Beliefs (-1 SD; fixed)

6800

Individual Gains (number of points)

6400

6000

5600

5200
Intraculture Interculture

Cultural Context
Why our subjective beliefs matter?
Affect your understanding of the partner:
 More engaged in multicultural settings (Chua, 2013; Maddux et
al., 2013)
 More effective negotiation strategies (e.g., asking questions)
(Gunia et al., 2011)
 Less intercultural anxiety(Chao et al., 2016)
 Integrative thinking (Tadmor, Chao et al., 2013)

Beliefs: “Good” or “Bad”?

Culture & Negotiation Strategies Take-away
Discussion
Yerba Mate vs. Sweets Shop
Being able to identify the situations we are in &
issues involved
Recognize the many layers of “culture” (role-
based, institutional, societal, national, etc.)
Use of S&O, Q&A, MESOs strategies
Role of cultural stereotypes
Improve effectiveness in intercultural
negotiation
Our beliefs matter!
Session 3’s focus
Discussion
Simulation exercise: Sweet Shop
Culture & negotiation strategies

Dispute resolution
Myti-Pet
Myti-Pet Simulation
 Role play either as
 CEO of Myti-Pet
 CEO of Rawmat

 Procedure
 One-on-one negotiation
 Familiarize yourself with the company
plan & your role
 Strategize, prepare your own planning
document before the negotiation begins
(35 minutes)—Exhibit 1.1 (p. 18)
 Negotiate with your partner (55 minutes;
check the seating plan)
Making your own plan…
38
Myti-Pet Simulation
 Overview
One-on-one negotiation simulation
The session is divided into 3 parts:
1. 30-minute Preparation
2. 55-minute Negotiation
3. 5-minute Post-negotiation survey
https://ust.az1.qualtrics.com/jfe/form/SV_aYjyW4ZpGJxu6rk

Total: 90 min
 Remember to
Put your name & student ID on all document
submitted
Submit the final materials (contract & planning
document) before the end of this class
 Finish early?
Take a break
Chat with your partner/classmates
Go over lecture materials
Take note of your negotiation experiences