organizational culture dimensions that influence the...

Retos de las ciencias administrativas desde las economías emergentes:

Evolución de sociedades.

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Organizational culture dimensions that influence the manager’s

negotiation strategy of industrial strategy.

Zulema Aguilar Flores*

*Tecnológico de Monterrey - UAB.

Ciudad. Juárez, Chihuahua. México.

Email: [email protected]

Teléfono: 656 3111715

Abstract:

The present document is about the perceived organizational culture dimensions

that influence on the leader´s /manager´s negotiation characteristics or

behaviors to adopt the most appropriate strategy (collaborative-competitive) for

that purpose and streamline the outcome.

This study stems from the idea that leadership is an extension of the

organizational culture and needs specific skills to have the best performance

when striving to meet the company´s goals. As a part of the leader skills, the

negotiator profile will be evaluated based on “The GLOBE Project” survey. The

study uses purchasing managers of international enterprises (maquiladora)

located in the Mexico – USA border, as a sample.

This document proves that performance, future and individualistically oriented

organizational cultural dimensions, impacted in the negotiation strategy that the

managers follow in a buyer-seller industrial transactions in the Automotive and

Medical Industry.

Keywords: organizational culture, leadership, international negotiations,

GLOBE project

I. Introduction.

This paper suggests that culture can be studied as an integral part of the

adaptation process of organizations. Organizational culture may be a useful

predictor of performance, as well as serving as an influence on a negotiation

strategy.

Capítulo 5. Administración Multicultural

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The topic of Culture and negotiation has been studied for a long time based on

an individual and country level measurements ( Hofstede 1980, Schwartz 1994,

Smith, Dugan & Trompenaars, GLOBE,1996) and mainly focused on Cross-

cultural studies (Graham 1989, Mintu 2002, Salacuse 1998), and negotiation

and effectiveness (Rogers, et al,. 2007, Denison 1995, Schein 1985,1990) but

there is still limited consensus regarding a general theory of organizational

culture, and an amount of healthy skepticism about whether culture can ever

be ―measured‖ in a way that allows one organization to be compared to another.

Organizational researchers have addressed the relationship between Culture

and Functioning ( Wilkins and Ouchi 1983, Barney 1986, Barley et al. 1988,

Saffold 1988, Ott 1989) and have come to recognize that if a measure of

leadership and a measure of performance are correlated at the individual level,

they may or may not be correlated when the measures are aggregated to the

group or organizational levels. (Peterson, et al., 2006). However, there is no

study that provides an overview of the organizational culture dimensions that

influence the negotiation strategy of industrial transactions ( buyer-seller).

According to Fisher & Ury (1991) there exist two main types of negotiation:

Distributive bargaining ( competitive) and Integrative Negotiation (

collaborative). Salacuse (1998) agrees on the previous statement and stated

that negotiation is either: a process in which both buyer-seller can gain (win-

win), or a struggle in which, out of necessity, one side wins and the other side

loses (win-lose). Win-win negotiators see deal making as a collaborative and

problem-solving process; win-lose negotiators see it as confrontational situation.

Hoppman (1995) and Lewicki et al. 1993) concluded that these approaches

represent the two paradigms of the negotiation process.

This document proves that organizational culture dimensions influence the

negotiation strategy that managers follow in buyer-seller industrial transactions.

According to Gelfand and Dyer (2000), there is a ``black box'' that remains

unopened in the area of culture and negotiation research, consequently the

main contribution of this research is to provide valuable information to the

industrial sector in regards to the influence of organizational culture and the

negotiation strategy followed by managers.

This document is divided in six sections: 1) Introduction, 2) Conceptual

framework,

3) Methodology, 4) Results and findings, 5) Conclusions, and 6) Limitations of

the study and future research

General objective



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The purpose of this research is to learn about how the organizational cultural

dimensions influence the negotiation strategy followed by buyer-seller in

industrial transactions and its impact on the outcome.

II. Conceptual Framework

―The most important competitive advantage of a company is its organizational

culture” Cameron and Quinn (1999).

― Organizational culture is a pattern of basic assumption that a given group has

invented, discovered, or developed in a learning cope with its problems of

external adaptation and internal integration‖ ( Schein, 1996). This definition

provides an important argument of how important is the leader performance

when working towards attaining the company´s goals.

Hofstede (1993) defines culture as ― the collective programming of the mind that

distinguishes one group or category of people from another.‖ More recently, the

Global Leadership and Organizational Behavior Effectiveness (GLOBE) project

defines cultures as ―shared motives, values, beliefs, identities, and

interpretations or meanings of significant events that result from common

experiences of members of collectives that are transmitted across generations‖.

Studies of cultural negotiation styles tend to form two basic groups:

1. The first describe and analyze the negotiating style of a particular culture.

2. The second one is cross-cultural and comparative. It seeks to identify

certain basic elements in negotiation styles and to determine how they

are in various cultures. The great diversity of the world´s cultures make it

impossible for any negotiator, no matter how skilled and experienced, to

understand fully all of them.

This paper aims to understand how the organizational culture (industrial market)

influence the negotiation strategy of managers.

Negotiation process of industrial transactions

To become familiar with the concept of negotiation, definitions from different

authors are offered below:

Negotiation is the process where individuals ―attempt to settle what each shall

give and take or perform and receive a transaction‖, ( Mintu-Wimsatt, 2002)

On the other hand, Pruitt, 1983 in Meyer, et al,. (2004) defines negotiation as a

―decision making process in which people mutually decide how to allocate

scarce resources” .

Rubin and Brown (1975) proposed that ―As bargainers enter into relationships

with one another, they bring with them variations in prior experience,

background, and outlook that may affect the manner and effectiveness with

which they interact‖.


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According to Neu, Graham and Gilly (1988); negotiation outcomes have been

hypothesized to be the result of several factors which can be classified in three

categories: (1) Individual characteristics (gender, intelligence, self-esteem,

attractiveness and power and cultural background), (2) Situational constraints

(company goals, company culture, environment, unequal power relations), and

(3) Process measures (problem solving strategies, tactics).

The procurement function is recognized as being a key ingredient to achieve

competitive advantage, then the broad question is: ―how can the procurement

practices be effectively managed under industrial negotiations?‖. The inherent

difficulties of the dynamic situational constraints between buyers and suppliers

are commonly found in the negotiation stage of contracts. Therefore, there is a

need for a new research that contributes to the international business

negotiation knowledge base.

Strategic purchasing and its importance in supporting company and business

units has long been promoted by academics ( Browning et al. 1983; Reck and

Long 1998) .

Negotiation behavior should assist in developing effective selling strategies. The

goal of both buyer and seller in negotiations is to obtain the best possible

outcome for their firms. Because the buyer's and seller's goals often conflict, a

degree of flexibility is required in the way they negotiate and the positions they

take on negotiation.

Many researchers have been studied the topic of negotiation from different

perspectives, (Herbst, et al,. 2010) this includes literature about negotiation

parties, negotiation atmosphere, negotiation environment, negotiation

preparation, negotiation process, negotiation outcome and multi-categorical

research.

Relevant studies about cross cultural issues are presented in the negotiation

atmosphere, but there is a lack of organizational culture and negotiations, which

represents a big opportunity and challenge for this research.

Organizational culture play an important influence is the negotiation process

because the negotiator is a part of that organization and the negotiation

revolves around organization objectives.

What influences the negotiation?

Brooks and Rose Model of Negotiation Orientation ( 2005), is a model focused

on buyer-seller negotiations, that includes negotiation orientation (NO) as a

motivational construct that underlies behavior in negotiation and suggested that

is a need of research to link several antecedents and consequences drawn from

negotiation field.



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Figure 1: Brooks and Rose Model of

Negotiation Orientation (2005)

For the purpose of this research the model above will be adapted to a specific

type or industry an transactions ( buyer- seller industrial transactions).

Figure 2: Own

Elaboration

The nature of industry was also reported as influencing the bargaining power

of the negotiation parties through willingness to offer trade-offs and concessions

(Brouthers and Bamossy, 1997).

In an industrial environment, such maquiladora; the buyer-seller relationship is

not easy because in some products the buyer has many suppliers that are able

to sell the same products at a lower price, but there are also a very critical and

specialized products in which there are a unique suppliers and just few of them

certified by the customer. In this field, buyers should have experience and be

able to look for the best option.

Organizational factors as an independent variable vs negotiation strategy

as a dependent variable.

Organizational factors were reported as influencing international business

negotiations through their impact on bargaining power; variables, such as

resources, stakes, and the availability of alternatives influenced bargaining

power and bargaining power in turn, influenced management control and

satisfaction.

Organizational culture Negotiation Strategy Outcome

of

negotiation


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Several studies about the relationship between national culture and negotiations

are available, but the ones that consider organizational culture are limited.

There are scholars and researches that studied the impact of culture on the

negotiation process (Weiss 1994, Faure and Sjöstedt 1993, Binnendijk 1987,

Fisher 1980, Graham et. al. 1998, Campbell et al. 1998). Their research and

observations indicate that negotiation practices differ from culture to culture,

and that culture can influence ― negotiation style‖

Brodbeck, et al., (2000) concluded that concepts regarding outstanding

leadership are culturally determined. Also using the GLOBE study, Den Hartog,

House, Hanges and Ruiz-Quintanilla (1999) examined the universality of

charismatic of transformational leadership in 62 nations. Results suggested

that aspects of charismatic or transformational leadership as contributors to

perceptions of outstanding leadership are universally endorsed. They also

found national differences on many other leadership attributes.

Denison and Mishra (1995) conducted a test to evaluate the organizational

culture and effectiveness of the company through the leaders performance.

This was about CEO perceptions of 764 organizations, the results of this study

suggest that culture may indeed have an impact on effectiveness.

This finding support one of the basic premises of many culture researchers:

That the cultures of organizations have an important influence on effectiveness.

Researches apply the GLOBE methodology to another fields or specific cases

to analyze the influence of leaders behaviors.

It was found that weak goals lower the individual negotiatior´s motivation and

thus the result in less successful negotiation outcomes ( Pruitt, 1983; Bazerman

et al., 1985) .

Chung and Kim (2003), studied the performance effects of partnerships among

manufacturers and suppliers for new product development and results indicated

that a high level of supplier´s involvement positively influences innovations and

financial performance. This study reflects also the suppliers point of view and

they found that the relational behavior in terms of initiating, signaling and the

disclosure of information does seem to have a deep effect on the ―share of

business‖

Leuthesser (1997) defined share of business as a performance indicator, since

there is an interdependence between buyer-supplier within a B2B (Business to

Business) environment.

Following the above argumentation, may hypothesize that:

H1: Performance oriented organization will be positively correlated with a

collaborative negotiation strategy and negatively correlated with a

competitive negotiation strategy under an industrial buyer-seller transaction



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Herbst, et al., (2010) found that concerning the issue of negotiation strategies

and tactics, most studies provides normative contributions in the form of ―good

guy, bad guy‖ (Perdue, 1992). That is linked to the competitive-cooperative

behavior (depending on the profit orientation) (Frazier and Rody, 1991;

Ganesan, 1993) or command and cooperative behavior ( depending on the time

horizon of the business relationship) ( Dabholkar et al., 1994).

Perdue et al., (1986) found that most industrial buyers generally perceive

themselves as collaborative in their dealings with industrial sellers.

The cooperative mode is known as win-win situation, when both parties get

positive results and satisfaction, looking for long term relationship. Normally this

strategy is followed when an acquisition or joint venture is being negotiated.

The competitive mode is known as win-lose situation, when one party wins at

the expense of the other, normally this happens on a short term relationships.

Hartog, et al, (1994) conducted a study of a Dutch and Polish managers, it

consisted on a questionnaires of 287 Dutch managers from six organizations

and 277 Polish managers from six organizations filled out questionnaires. The

results indicate that Dutch and Polish cultures differ strongly on power distance,

uncertainty avoidance and future orientation. Regarding preferred attributes for

outstanding leadership, Polish respondents score especially high on

administrative skills, vision, and diplomacy, whereas Dutch managers

emphasize integrity, inspirational behavior and vision. Polish respondents are

also less negative about autocratic leadership.

T-tests were done to assess whether found differences between the Dutch and

Polish scale means of culture dimensions and leadership attributes were

significant.

Leonidas, et al., (2005) worked on an integrated model of the behavioural

dimensions of industrial buyer-seller relationships and they found that

organizational buyers will better comprehend their associations with suppliers,

and could seek to increase purchasing efficiency by closely monitoring suppliers

association with a future orientation and seek for a long term relationship.

Van Weele (2005) agrees and further asserts that in an ever-increasing globally

competitive business environment, it is becoming of key importance within the

realms of purchasing and supply chain management to develop long-term,

mutually beneficial business relationships.

With a collaborative long-term oriented relational approach some researchers

demonstrated that purchasing efforts via cooperative negotiation boost both

effectiveness and efficiency. (Janda and Seshadri 2001, Lamming 1993,

Lewicki et al. 1994). The commitment of long term relationship ( future


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orientation), strategic relations can promote win-win solution ( collaborative

negotiation strategy), it is believed that cooperative negotiation tactics in which

both parties carry weight is more likely to drive a satisfying and productive

relational outcome.

Studies have shown that even though a long-term partnership is sought by both

negotiating parties, the anomaly of aggressive bargaining tactics is still

exercised ( Lax and Sebenius,1986)

Based on the preceding discussion, the following hypothesis is proposed:

H2 Future oriented organization will be positively correlated with a


competitive negotiation strategy under an industrial buyer-seller transaction.

Individualism / collectivism

Individualism refers to the tendency to address self-serving concerns.

Individualists have elaborate self-knowledge instead knowledge about others,

they emphasize autonomy and self-determination. Individualists often

demonstrate direct modes of expression ( Morris et al., 1998).

Collectivism refers to the tendency to be more willing to sacrifice personal

interest for the good of the group ( Hofstede, 1991). Collectivist promote

interdependence with others, focus on relational harmony and protection of

group interests. They are more associated with indirect communication (

Morris et al., 1998)

Heydenfeldt, (2000), conducted a research to evaluate the influence of

individualism/ collectivism on Mexican and US business and demonstrates that

Mexican negotiators may choose different behavioral dimensions than US

negotiators when negotiating.

He suggested to examine the influence of values and beliefs because will be

increasingly important in the near future.

Earley and Gibson (1998) tracked the studies of individualism and collectivism

during 100 years .

Exporters from the United States and the Philippines were asked to respond to

a survey study assessing their negotiation behavior. The United States

represents the low context/ individualist group while the Philippines represents

the high-context/collectivist group. As an outcome, one personality variable

affected negotiators problem-solving style but not according to the proposed

direction and conciliation appears to have a negative influence on problem-

solving implying that a more conciliatory negotiator is less likely to demonstrate

cooperative problem-solving.

Morris et al, (1998) have found that American managers are more inclined to

use a competitive style in conflict management because they are more directed

toward their own interest. Negotiators that rank low in individualism, like Asian

cultures, prefer harmony such as cooperative strategies.



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Based on the previous information, the hypothesis three will be:

H3 Individualistic oriented organization will be positively correlated with a

competitive negotiation strategy and negatively correlated with a

collaborative negotiation strategy under an industrial buyer-seller transaction.

The influence of negotiator demographics as an independent variable vs

negotiation strategy as a dependent variable.

Individual characteristics such as age, gender and experience, on the success

of international negotiations and the behavior of negotiators was examined by

Mintu-Wimsatt (2000)

With regard to personality, it seems reasonable to hypothesize that

characteristics that allow leaders to survive and perform in complex

organizational environments may be related to leader performance. Some of

these characteristics like openness, tolerance for ambiguity, and curiosity, may

influence leader willingness to handle problems and success in working through

these problems. Other characteristics, such as confidence, risk taking,

adaptability, and independence, may influence performance by allowing leaders

to apply resources more effectively in a turbulent and rather stressful

environment (Fiedler & Garcia, 1987).

Mintu, (2002) suggested future research could further explore this area by

considering other possible aspects of a negotiator’s value orientation, such as

psychographics and demographics, and also explore business negotiation on

win-lose as well as win-win problem solving oriented negotiation; in order to

allow managers to gain a better understanding of business negotiation.

As much experienced the manager is, he will have a better understanding of

the market and the industrial sector, and will work towards a collaborative /

integrative strategy to gain resources and

Thus the H4 is:

H4: In an industrial buyer-seller transaction the experienced manager will be

positively correlated with a collaborative negotiation strategy and negatively

correlated with a competitive negotiation strategy.


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Negotiation strategy as an independent variable vs outcome of

negotiation as a dependent variable.

Conflict is a blocking behavior in a working relationship that deters the parties

involved from gaining resources or pursuing an activity for their advancement (

Anderson & Narus, 1990). Conflict is usually expressed in terms of

disagreements, tension, and frustration between sellers and buyers caused by

structural reasons ( competition for the same resources, the need to maintain

autonomy in the relationship, and the pursuit of different or even opposite goals)

and/or attitudinal factors (different expectations about potential outcomes.

As globalization of the economy and diversity of the work force increase, factors

such culture must be explored in negotiation research if determinants of

effectiveness are to be understood.

Effective negotiators use more assertive tactics when dealing with someone of

lower status while rational argument is best used when dealing with superiors.

(Heyndenfeldt, 2000)

Due to the nature of industrial market:

H5: In an industrial buyer-seller transaction the more competitive negotiation

strategy is followed, the more effective bargainer the manager will be, and the

more collaborative negotiation strategy is followed; the less effective

bargainer the manager will be.

This collection of empirical and conceptual studies has established a precedent

of the comparative study of culture and negotiation

Based on this suggestions and findings from researches, the following model is

suggested to study the organization cultural factors that influence the manager

negotiator outstanding performance of the maquiladora industry in Juarez,

Chihuahua, Mexico.



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This model suggests that the organizational culture and demographic

characteristics of the negotiator influences on the negotiator strategy under an

industrial transaction to be an effective bargainer.

For the purpose of this study, the organizational culture will be measured

and evaluated by the GLOBE survey.

GLOBE Project as a measurement tool

The GLOBE research project is a long-term study directed toward the

development of systematic knowledge concerning how societal and

organizational cultures affect leadership and organizational practices (House,

1996).

Increasing the understanding of culture-based differences in leadership

perception is a key issue in the GLOBE Project.

About 62 countries from all major regions of the world are participating in this

study, making it the most extensive investigation of cross-cultural aspects of

leadership to date. The project was originated by Professor Robert House who

is also the head of ―the coordinating team‖ based in the United States.

Organizational Culture

Dimensions Negotiator

strategy

Negotiation outcome

Effective

Bargainer (Neu , Graham and Gilly

1988)

1)

Future orientation 2)

Individualism /

collectivism orientation

3)

Performance orientation

1)Collaborative

2)Competitive Ghauri (1986)

Manager Characteristics and Demographics

1) Experience as a negotiator (years)

Transaction type : 1)Industrial Buyer - Seller transactions 2)Alliances or Acquisitions 3)Services

Clopton (1984), Saorín ,(2006)

H5

H2

H1

H4

H3

Figure 3: Own elaboration


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Approximately 140 social scientists from around the world are responsible for

managing the project and collecting data in their respective countries.

GLOBE deals with three major topics — leadership, organizational culture, and

national culture (House et al., 2004)

The main focus of this project is to do an extensive study of perceptions of

leadership across cultures. Aside from the substantial theoretical significance

for both the field of leadership and cross-cultural research, the results of the

GLOBE project may have a great deal of practical relevance. An increasing

amount of people are involved in cross-border operations, intercultural

management or organizational leadership in cultures different from their own.

In this study, aspects of societal cultures and practices of organizations in

which individual respondents work, will be measured along with preferred leader

attributes. Combining the total set of preferred attributes for outstanding

leadership identifies the prototype of outstanding or highly effective leaders

within the different countries.

The next table presents the culture dimensions, practices and values that are

considered into the survey as part of organizational culture.

Table 1 House (1996)

The table above, provides a brief description of the seven culture dimensions

that will be considered to classify the organizational culture of the companies in

which the survey was applied.

This study also considers the characteristics and behaviors mentioned below

(table 5) and are included in the GLOBE survey and every manager rates

himself according to their perceptions.



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Table 2 Hartog, et al,. (1994)

Kumar, et al,. (2009) mentioned that negotiation skill was ranked as the third

most important skill to be possessed by future CEOs in the Korn/Ferry

International and Columbia University Graduate School of Business Study of

top executives in twenty countries and is estimated that more than 50 percent of

international manager´s time is spent negotiating ( Adler and Graham, 1989)

III. Methodology

As mentioned previously, the base of this study is the GLOBE Project Survey,

some modifications were made in order to know the perceptions of the leaders

from the negotiator point of view.

The survey is focused on the organization in which the managers work, and

their perceptions about negotiations and negotiators. The main purpose being

to acquire relevant information as to have the organizational culture impacts on

the adopted strategy for the negotiation.

There are four sections to this questionnaire:

Section 1 asks about how the organizational culture is perceived. The main

objective of this section is to know the person´s beliefs about what the norms,

values, and practices are in the organization in which they work as a manager.

In other words, the way the organization is in reality and not the way they think it

should be.


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According to the suggested hypothesis, the present organizational culture on

day to day basis must be aligned with a collaborative negotiation strategy due to

the nature of the transaction faced by the managers.

This section includes 34 questions.

Sections 2 and 3 have a different type of question. For these sections, are

given a list of behaviors and characteristics that a negotiator might display. The

respondents are asked to rate these behaviors and characteristics.

Section 2 focused the questions on how an outstanding negotiator ―should be‖.

It includes a list of 56 behaviors and characteristics to be rated by the

managers.

Section 3. This section focused the questions on how important are the 56

behaviors and characteristics listed. It can be identified as how an outstanding

negotiator ―is‖.

This is where the reality of the negotiating practices come into play. As we may

acknowledge many of the instances in the negotiation tables turn out to be

influenced by the variables of transaction type, organizational culture

dimensions and individual characteristics.

Section 4. This section asks demographic information like the background, the

places where they work, experience, etc.

Sample

The North of Mexico is well known as an industrial region, and the Maquiladora

Industry is the most representative foreign investment mode in Juarez City,

with the representation of countries like United States, Germany, Italy, France,

Canada, Brazil, China, Japan, India, Taiwan, among others.

Based on the information provided by AMAC ( Maquiladora Association) there

are 388 maquiladoras in Juarez, City . The most representative sectors are the

Automotive and the Medical, in which 22% are in the Automotive ( 83

maquiladoras) and 10% are in the Medical ( 38 maquiladoras)

A research was conducted to take as a sample those maquiladoras that has the

purchasing decision making power in Juárez and the results based on AMAC

shows that for the Automotive Industry: 40 maquiladoras and for the Medical

Industry: 10 maquiladoras.

Purchasing managers of the industrial sectors mentioned above were selected

to answer the survey. The managers received the survey by e-mail, 20 of them

provided an appointment to answer face to face, the rest were send it back by

e-mail of fax. In total fifty managers answered.



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IV. Findings

First of all, descriptive statistics were calculated in order to know

the respondent profile.

Descriptive Statistics

N Minimum Maximum Mean

Std.

Deviation

p4.1 (age) 50 26.00 55.00 38.5600 6.57813

p4.13 (full

time work

experience)

50 3.00 35.00 15.6600 6.54220

p4.14

(years as a

manager,

experience)

50 1.00 25.00 7.5000 6.29626

Valid N

(listwise)

50

Table 3

The respondent’s average age is almost 39 years old and the full time work

experience goes from 3 years as a minimal to 26 years as a maximum with an

average of 15.66 years. These results may suggest that the average time of

experience could lead them to a negotiation approach manipulated by the

nature of all the previous negotiations in which they have taken part of.

On the other hand the experience as a purchasing manager goes from 1 year

as a minimal to 25 years as a maximum with an average of 7.50 years. An

experienced manager is expected to understand better the market than a young

professional, and be sensitive to the best negotiation strategy followed in this

type of transactions.

All of them use English as a work language and work for a multinational

corporation.

Their countries of citizenship reported on their passport are as follows:

Country of Citizenship

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid México 35 70.0 70.0 70.0

USA 6 12.0 12.0 82.0

Other 9 18.0 18.0 100.0

Total 50 100.0 100.0


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Table 4

The table number 8 shows that 70% of the respondents are Mexicans, 12% are

US Citizens and 18% are from another country.

Since the main objective of this research is to learn about the organizational

cultural dimensions that define the most appropriate negotiation strategy in the

context of the industrial buyer-seller transactions, a Factor Analysis was done

for every section due to the large number or of variables. The results are

presented per section.

Section I of the survey that is about ―organizational environment‖.

Based on the table above, nine factors were the outcome of the section I, with a

total variance explained of 83.546%

Table 5

Section II of the survey that is about how it ―should be‖ an

outstanding negotiator and the results are 14 factors with a total

variance explained of 90.90%

According to the questions or variables that were part of each factor (the

numbers in red that are superior of 0.70 absolute value) below are the

names of the Section II factors.

Section III of the survey that is about ―negotiator characteristics or

behavior‖, and the results are 14 factors with a total variance explained of

92.76%. According to the questions or variables that were part of each

Table 6



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factor (the numbers in red that are superior of 0.70 absolute value) below

are the names of the Section III factors.

Table 7

After the factor analysis, a correlation of all the factors was run in order to

evaluate the relations and associations between them.

The nomenclature on next table (8) is as follows:

The F means factor, then the first number is the section and the second

number is the factor so when we see F13, means that is doing reference on the

third factor of section 1.

The correlations that will be consider for the analysis are between F1x ( section

I) with F2x (section 2) and F3x (section 3). The correlations between factors of

the same section are not considered due to the fact that the objective of this

research is to analyze the influences of the organizational culture (section I) on

the negotiation strategy /profile (section 2 & 3).


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FACTOR CORRELATION FACTOR 1 NAME FACTOR 2 NAME MEANING Reference to an

Hyphotesis relation

8 F13-F27 (-0.531) Performance oriented

(organization) Evasive

(negotiator behavior)

The Performance oriented organization is negatively correlated with an evasive

negotiator

9 F13-F28 ´(0.549) Performance oriented

(organization) Competitive


The Performance oriented organization is positively

correlated with a competitive negotiator H1

10 F13-F35 (-0.547) Performance oriented

(organization) Un equal (negotiator

behavior)

The Performance oriented organization is negatively

correlated with an un equal negotiator

11 F14-F28 (-0.516) Assertiveness oriented



The Assertiveness oriented organization is negatively

correlated with a competitive negotiator

12 F14-F35 (-0.520) Assertiveness oriented


behavior)

The Assertiveness oriented organization is negatively


13 F16-F27 (-0.652) Individualistic oriented



The Individualistic oriented organization is negatively

correlated with an evasive negotiator

14 F16-F28 ´(0.729) Individualistic oriented



The Individualistc oriented organization is positively

correlated with a competitive negotiator H3

15 F16-F35 (-0.546) Individualistic oriented


behavior)

The Individualistic oriented organization is negatively


16 F17-F27 (-0.605) Woman oriented



The Woman oriented organization is negatively

correlated with an evasive negotiator

17 F17-F35 (-0.586) Woman oriented


behavior)

The Woman oriented organization is negatively


18 F21-F31 ´(0.512) Collaborative

(negotiator behavior) Visionary


The collaborative negoriatior is positively correlated with a

visionary negotiator

19 F21-F34 ´(0.886) Collaborative

(negotiator behavior) Group oriented


The collaborative negoriatior is positively correlated with a

group oriented negotiator

20 F21-F36 (-0.504) Collaborative

(negotiator behavior) hostile oriented


The collaborative negotiatior is negatively correlated with a

hostile oriented negotiator

21 F22-F33 ´(0.627) Competitive

(negotiator behavior) Effective bargainer


The competitive negotiatior is positively correlated with an Effective bargainer oriented

negotiator H5


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Table

8

The table above shown six organizational culture dimensions as the key

important:

Humane oriented, future oriented, performance oriented, assertiveness

oriented, individualistic oriented and Women oriented.

Based on the previous information (row number 9 ) the H1:

H1: Performance oriented organization (PO) will be positively correlated

with a collaborative negotiation strategy and negatively correlated with a


This hypothesis is rejected since the PO is negatively correlated with

collaborative negotiation and positively correlated with a competitive

negotiation.

Hansen and Wernerfelt (1989), contrasted the effects of internal organization

and market position on performance and their study showed that internal

organizational factors were stronger predictors than the market position or

dynamics. This may support or explained the result in the sense of the

performance of the Automotive and Medical Industries.

Then on the row 3 & 6 we have correlations about the H2:

H2 Future oriented organization (FO) will be positively correlated with a



This hypothesis is rejected since the FO is negatively correlated with

collaborative negotiation and positively correlated with a competitive

negotiation.



Página 21

This result is opposite to what ― relationship network paradigm‖ explains, it

focuses on industrial systems, which are view as a networks of relationships

among firms sharing mutual orientation, mutual knowledge, relationship

investments, inter-firm dependence, exchange processes that leads them to a

future orientation perspective and long term relationships ( future orientation).

This could be explained by the years of experience in the negotiation field that

the managers have, probably they realized that in Automotive and Medical

sectors the negotiation strategy is more competitive due to the availability of

suppliers.

On the row 14 we have information regarding the H3:

H3 Individualistic oriented organization will be positively correlated with a

competitive negotiation strategy and negatively correlated with a

collaborative negotiation strategy under an industrial buyer-seller transaction.

This hypothesis is supported since the Individualistic oriented

organization is positively correlated with a competitive negotiation.

This result is consistent with Parnell and Kedia´s (1996) study, that suggested

that negotiators who are less individualistic are more effective and cooperative

bargainers.

Competitive bargaining entails competitive tactics ( Lytle, 1993) with a high level

of expectation, extreme demands, small concession rates, and a generally

unyielding or ―tough‖ posture.

Competitive negotiation is based on the assumption that negotiators are

economically rational and seek to maximize economic gain while attempting to

allocate scarce resources.

Collectivist values would suggest a greater reliance on an integrative approach

emphasizing co-operative tactics and a fallback to defensive messages, with

in-group opponents.

H4: In an industrial buyer-seller transaction the experienced manager will be

positively correlated with a collaborative negotiation strategy and negatively

correlated with a competitive negotiation strategy.

There is no correlation information to validate or reject this hypothesis.



In these industries, as the long-term relationships are pursued, the experienced

manager is expected to follow a collaborative negotiation strategy




Página 22

For the H5:

H5: In an industrial buyer-seller transaction the more competitive negotiation

strategy is followed, the more effective bargainer the manager will be; and the

more collaborative negotiation strategy is followed; the less effective

bargainer the manager will be.

The study reflects that the competitive negotiator is positively correlated with an

effective bargainer.

In contrast with the existing literature, the results showed that in the industrial

buyer – seller transactions as much competitive more effective the negotiator

will be and the outcome will be better.

V. Conclusions

There are many studies that studies cross-cultural influence on negotiation, but

not much about the organizational culture influences on the leader behaviors/

characteristics de perform as an outstanding negotiator.

The results from the GLOBE project will profoundly influence the cross-cultural

study of organizational behavior and especially leadership is a great tool to

adapt to other environments due it´s applicability of the dimensions.

Organizational culture play an important influence is the negotiation process

because the negotiator is a part of that organization and the negotiation

revolves around organization objectives.

Negotiation should be considered an organizational capability, and training

individuals is not enough, the environment and organizational culture as vision,

goals, targets, future orientation, performance, are part of the variables that

influences the negotiator performance.

The results of this study demonstrate that being a performance oriented

organization, future oriented organization and being an experienced manager is

not correlated to the collaborative negotiation strategy under this type of

transaction.

In contrast, being individualistic oriented organization is positively correlated

with a competitive negotiation strategy.

This supports the Gelfand and Dyer´s (2000) statement: there is a ``black box''

that remains unopened in the area of culture and negotiation research. So the

main contribution of this research is to provide valuable information to the

industrial sector in regards the influence of organizational culture and the

negotiation strategy followed by the managers.

Indeed, the organizational culture has an influence on the negotiation strategy

followed in an industrial transactions.



Página 23

Developing sound business to business relationships can be beneficial to both

sellers and buyers. Sellers can match better their products and services to the

customer needs, secure high repeat sales from their customers and exploit new

market opportunities, minimize the potential of customer switching to

competitors; use their customers as a source of innovative products ideas; and

gain access to useful market information. Buyers can ensure a long-term

supply of inputs in their production process; make use of seller´s expertise and

resources to protect their cost structure and achieve better purchasing prices;

suggest changes in the seller´s production operations that would improve the

process and efficiency; and achieve better coordination of their company

functions when dealing with multiple suppliers.

VI. Limitations of the study and future research

Limitations in the present study are considered as a future research,

recognizing that the data collected is just from one person of the company and

two main industries in the location. Another limitation is that the answers were

based on perceptions.

Survey application to another manager of the same organization is suggested in

order to obtain a comparable data for different negotiation activities with

different objectives and goals.

The purpose of this article was to introduce the GLOBE project to the

Automotive and Medical purchasing managers located in Juárez, México under

buyer-seller industrial transactions, will be interesting to apply the model on

service organizations to evaluate and compare the findings in order to train and

develop leaders, in another words; an outstanding negotiators.

More studies need to be done to evaluate the correlation between

organizational culture factors and other negotiator behaviors as: un equal,

evasive, visionary, etc.

Based on the results shown in table 8, future research is suggested to study the

influence of the following organizational culture orientations:

Humane oriented, assertiveness oriented and women oriented

Experimental studies are recommended based on the literature review on this

topic to have a better understanding of how the organizational culture impacts

on the negotiation strategy followed and on the outcome of buyer-seller

industrial transactions in the Automotive and Medical Industry.


Página 24

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