Contribution of cultural similarity to foreign products negotiation

Abstract

Purpose

The image of the country of origin is a determinant variable for the success or failure of launching a product into a new market. For companies of emerging countries which want to access markets of industrialized countries, the choice of a local negotiator sharing the same culture as the purchaser might have a moderating effect on the image of the country of origin which is generally perceived as negative. Cultural similarity induces trust between negotiators and facilitates communication. Consequently, it is an important factor in the presentation of a foreign product. The purpose of this paper is to examine the different variables and factors intervening during a negotiation of a product coming from an emerging country to a foreign market.

Design/methodology/approach

An empirical study based on a quantitative survey of a sample of international negotiators has been conducted with the aim of testing the above mentioned hypotheses. The questionnaire used in this survey has been administered through mail and has been sent to French and Italian negotiators.

Findings

The research hypotheses have been tested empirically. The results show effectively that a product coming from an emerging country is ill‐perceived by buyers in developed countries. The results show as well that cultural similarity induces trust which in turn expresses expertise and contact easiness.

Research limitations/implications

The main limitation of this study is the size of the sample. Despite the big number of the sent questionnaires, return rate was very low, which shows the limitations of surveys using the mail. The second limitation of this study concerns the variable trust which, despite a theoretical abundance on this concept, no compromise on its dimensionality has been detected till now.

Practical implications

At the level of management, these results constitute an encouragement to opt for local negotiators in order to succeed in launching a new product in to a foreign market.

Originality/value

This paper shows that professionals and researchers ought to collaborate on studies related to topics and themes related to intercultural negotiation, which is currently seen as a good way to bring together academic research and exporting companies.

Citation

Debabi, M. (2010), "Contribution of cultural similarity to foreign products negotiation", Cross Cultural Management: An International Journal, Vol. 17 No. 4, pp. 427-437. https://doi.org/10.1108/13527601011086612