Goal As Denmark is a low-context culture, associated with very specific relationships, one can infer that Danish negotiators will be deal focused. on the other hand is a lot more relationship focused. Chinese culture is a high-context one and relationships between individuals are diffuse. Moreover, as trust plays such a big role in business, successful transaction is considered impossible without establishing a serious relationship. All that indicates that the Chinese negotiator will look for a relationship. Attitude There is little about the attitude of Danes towards the negotiations in the literature. Due to their strong individualistic values, one can argue that they cherish personal achievement and thus are inclined to take a more distributive approach. Moreover, according to Rody (2002), "Danes are quite result-oriented and will explore every angle for the best solution". (Rody 2002, p. 84) However, whether they consider "best solution" one that gives them a bigger piece of the "pie" or one that leaves both sides better off is not clear. The way the Chinese negotiators approach the negotiation really depends on the level of trust between the parties. They can have one of three negotiation styles: negotiating as "gentlemen" (win-win), when the level of trust is high; as "strategists"(win-lose), when it is low, or as "bureaucrats" when there is more than one government institution involved or when the negotiations have political implications. (Ghauri, Fang 2001, p.312) The trust on the other hand strongly depends on whether one is part of the guanxiwang or simply an outsider. While Faure and Fang (2008) explain the role of Yin and Yang in shaping the Chinese values and behavior, they also argue that guaxi's importance for successfully conducting business is decreasing. Professionalism is taking over, especially in the more developed regions of China.(Faure, Fang 2008, p.197) Personal styles Danish business communication is known to be very informal as a result perhaps of its egalitarian organizations. (Varner, Beamer 2008, p.354) Gesteland (2005) also explain this lack of overt respect to high ranks by the low power distance. The "Law of Jante" also
The statements of the three interviewees are summarized and grouped into the 14 categories prescribed by the interview guide. (see Table 3) Topic: Thomas Karst Jørgensen Laurence Dawes 1. Approach If you don't have someone thatknows the language, market, people and demand, it's hard to find the right partners. Through a Danish company, recommended Steve (Chinese) as an agent. LEGO has established a Hong-Kong office to set up a relationship with many suppliers. 2. Goal Danish team: Building a relationship, seeking acceptance in order to be able to do business. Chinese team: Relationship, the only way do business. Danish team: business relationship. Chinese agent: Both long-term business relationship and contract. Chinese factory: very much deal-focused. "They didn't seem very interested in having us as customers." Danish team: Deal focused, however protecting the business relationship. Chinese team: Maximizing profit, long-term consideration for the relationship. 3. Relationship building and customs Wining and dining is important. conversations. Some time spent outside the office. "The Chinese seem to talk about everything else but business when out eating, they have a lot of humor." Lunch in a flashy restaurant (only once), where business was talked. 4. Time and space In Denmark everybody is to go get to work immediately. In China it takes time from the arrival to actually getting to business. An agenda that any Dane would think is the right way was too strict for the Chinese. Took one thing at a time and took a lot longer than expected. "Should have been there more time." Formal meetings with agenda and strict timeline. Two or three hours on issues and then factory tours. 5. Negotiation style " If you are not part of the network, you don't have an easy life, to put it this way." They use tactics that are abandoned in Europe, such as deliberately procrastinating to give you hard time and get Felt disrespect. The agent pretended he had never heard things that had already been agreed on and it would take additional time to sort it out. They don't mention themselves if there is something The Chinese always go for the most expensive option. LEGO keeps in touch with several suppliers to keep them competitive. They go early to be able to negotiate them down.
you soft. You to plan more time. missing and if you find out they add to the price. "I felt like they were very greedy" "Initially they bend to please us, but as time goes on, prices go up so we need to constantly negotiate." 6. Trust You show them more trust before they show you. Once you have established the relationship a lot more information starts to flow. It might be in the corridor or before you get in a taxi like "It would be a good idea if". The Danes were a lot more open about prices and charging than the Chinese. No trust on their side and increased already agreed prices. "They do trust us." It's a very close relationship and exchange of information. For new suppliers it takes about a year to see how things are going. 7. Formality "You are formal in their terms." There are number of formal things that need to be done right. Showing respect to the senior by a designated seat etc. First names even with the people high in the hierarchy. Rather informal due to the close work relationship. 8. Agreement building Starts holistic and jokes around, which might end up in a mess. No structured meetings like at home. Important not to any "doors". Had details before even going there, but they had to be renegotiated. Long negotiations on details. Very specific approach, directly on the details since it's always the same. 9. Communication styles "They will come around you in a thousand indirect ways", unlike Dane. "You cannot make them lose face by saying no." There has been occasions when people failed adhering to the conduct and things basically stopped, in some cases irrevocably. It's part of their culture not to say no. "The Chinese said yes without understanding what we were saying." To them it's very much of a let-down if they don't understand what you agreed on. It's a big problem to disappoint someone. They are very direct and thrall. There are almost no misunderstanding because of the skilled personnel in the Hong Kong office. 10 Emotionalism No emotions, only politeness and smiles. Danes can get angry and annoyed. "If it's a negative emotion, Only the agent got upset at a point because he was disappointing so much and offered the The Chinese are emotionless, business oriented. Danes are more emotional. Although things come