Entrepreneurial Negotiations: An Exploratory U.S.-China Perspective

ABSTRACT Negotiation research generally focuses on what transpires at the table, by-passing the crucial pre-negotiation phase. This introductory work has one central objective- to explore the relative importance of the pre-negotiation, active and post-negotiation phases in the minds of entrepreneurs from different parts of the world. Results from this exploratory study show no differences when comparing U.S. and Chinese small business owners across the three phases, even when the groups were anticipating a highly competitive or collaborative encounter. INTRODUCTION Conflict is a growth industry that pervades international relations and entrepreneurial processes (Fisher, Ury, and Patton 1991; Graham 1983; Roloff 1987), and is seen as the growing method for interacting with the environment (Arndt 1979). Since is one of the prominent mechanisms through which change and entrepreneurial development can be achieved, understanding the complete process is paramount. However, most research has exclusively focused on what transpires at the table, by-passing the crucial pre-negotiation and postnegotiation phases. One question remains untested, do negotiators across the globe view the phases with similar weight and importance? The importance of the pre-negotiation phase has been noted by a few, but little research has been conducted. Lewicki and Litterer (1985) posited that, and planning are the most important parts of negotiation (p. 47). Gulliver (1988), an anthropological researcher, noted that most social scientists who have examined phenomena and created theories about such behavior have myopically searched only for explanations of outcomes. Gulliver stated that by concentrating on outcomes, many factors that may significantly affect outcomes have been overlooked. Leading U.S. and international trainers declare that planning skills are the most important traits one can possess (Karrass 1970; Graham and Sano 1989). The post-negotiation phase has been the focus of even less scrutiny. Yet in many cultures, especially China, reaching an agreement at the table is not the end of the but rather the opening of a relationship and future rounds of negotiations. Thus, the negotiated agreement provides a framework for a business relationship, but it is the subsequent behaviors and the interpretation of the intent of the parties that will decide the actions and payments for each party. In short, for some international negotiators, the details are worked out during the life of the agreement according to changing needs and requirements of the parties involved. Peterson and Lucas (2001) offered an outlined to the three phases to the process (see Table 1) and offered several propositions, but not any specific empirical evidence. So while academic studies have noted that people from separate cultures demonstrate different tendencies at the table, little is known on how people prepare for negotiations or how they handle implementation of negotiated agreements. Perhaps they also have discrete approaches for preparing for and implementing deals. This introductory work has one central objective, to explore the relative importance of the pre-negotiation, active and post-negotiation phases in the minds of entrepreneurs from different parts of the world. The paper begins with a brief overview of the three phases. Next, the method used to collect data from the two groups is outlined and followed by the results. A discussion and managerial relevance are offered along with the limitations of this exploratory study. Pre-Negotiation Planning and Preparation Planning and preparation is a ubiquitous human activity. In a business environment, planning is largely undertaken in an effort to: 1) reduce future uncertainty, and 2) diminish the risk of failure (Foster 1993). …