__________ is critical to the success of business negotiations when working in saudi arabia.

Conducting cross-cultural communication in the context of the global economic environment is a challenging task. Because of the necessity to take into account a vast range of culture-related factors to avoid cross-cultural conflict, organizations need to carry out a comprehensive comparison of states participating in international interactions (Wilhelm & Chaichompoo, 2015). Created by Geert Hofstede, the Cultural Dimensions Theory and corresponding tool facilitate identifying differences and similarities in the cultural characteristics of different countries. Thus, they provide the opportunity to develop trust-based relationships and avoid cross-cultural clashes (Özdasli, Penez, & Koca, 2016).

Chart Analysis

As Figure 1 shows, a vast number of differences exist across the key dimensions among the United States, Mexico, Saudi Arabia, and China. For example, the level of indulgence varies significantly among the different countries, with Mexico showing the highest rates and China having the lowest. The levels of indulgence are also significantly different in the identified states. For example, Mexico and Saudi Arabia tend to avoid uncertainty quite often, whereas the United States and China are less concerned with the specified issue.

The results of the comparison also show notable points of contact among the various states. For instance, power distance is equally high in all countries except the United States, where it is moderate. Uncertainty avoidance, in turn, reflects similar levels in all countries. By focusing on qualities held in common such as power distance and masculinity, the United States, Mexico, Saudi Arabia, and China will be able to identify common ground and build a constructive dialogue.

Implications of Communication

The outcomes of the analysis indicate the existence of a strong need to introduce a homogenous framework for managing relationships among the United States, Mexico, China, and Saudi Arabia. Because of the differences in culture and worldview exhibited by the specified countries, it is critical to creating a uniform approach toward managing the conversation (Blut, Chowdhry, Mittal, & Brock, 2015). Adopting a negotiation approach based on the principles of compromise and cooperation should be regarded as a primary change that must be implemented to encourage successful business operations between the specified states (Bo, 2014). Introducing a multicultural approach based on the process of unceasing learning and appreciation for the cultures of other states should be considered another crucial step in maintaining stable relationships among the United States, Mexico, China, and Saudi Arabia (Zourrig & Cosentino, 2017). Without a profound study of those issues that have the potential to spark a massive conflict, the participants in an international dialogue will not be able to progress in terms of communication.

Cultural Characteristics

While negotiations based on the avoidance of uncertainty, as well as awareness of power distance principles as one means of communicating with representatives of Chinese, Saudi Arabian, and Mexican organizations, would be expected to have a positive effect on economic and business relationships, it would be incorrect to claim that the adoption of the specified tools would immediately lead to success. However, by taking into account the fact that power distance and uncertainty avoidance play an important role in the cultures of the countries under consideration, the United States will be able to build a connection with them and thus avoid possible confrontations. Furthermore, misunderstandings concerning the intentions of these countries and the organizations that represent them will be managed successfully. As a result, opportunities for successful negotiation will emerge.

References

Blut, M., Chowdhry, N., Mittal, V., & Brock, C. (2015). E-service quality: A meta-analytic review. Journal of Retailing, 91(4), 679-700.

Bo, T. (2014). A study on advertisement translation based on the theory of eco-translatology. Journal of Language Teaching & Research, 5(3), 708-713.

Compare countries. (2018). Web.

Özdasli, K., Penez, S., & Koca, M. B. (2016). The cultural dimension levels of Turks in the United States. Journal of Economic Development, Management, IT, Finance, and Marketing, 8(1), 36-52.

Wilhelm, W. J., & Chaichompoo, P. (2016). We are not like them. They are not like us. Cultural dimensions and moral reasoning in Thailand and the United States. The Journal of Research in Business Education, 57(2), 57-81.

Zourrig, H., & Cosentino, J. (2017). Perceived deceptiveness of insurance fraud: A cross-cultural perspective. ASBBS Proceedings, 24(1), 567-578.

Need a custom Report sample written from scratch by
professional specifically for you?

801 certified writers online

Imagine that you’re presented with an unfamiliar board game and told to play it.

Unfortunately, you don’t understand the rules and irritate the other players by making mistakes and getting things wrong.

The game becomes a stressful and confusing experience.

In many ways, the rules of different cultural settings are much like this.

For people travelling to Saudi Arabia to negotiate a contract, they can find themselves in a situation in which there are unsaid rules at play that they can’t quite grasp.

If you want to get the best out of your negotiation experience then it’s important that you take the time to learn about the business culture and specifically, the Saudi negotiation style. This preparation will help you navigate unspoken rules and conduct yourself in a way that the other ‘players’ perceive positively.

By doing so, you’re far less likely to cause offence or to damage your reputation. Below, we’ve included some core elements of Saudi negotiation culture that you should be aware of.

6 Tips on Negotiating with Saudis

1. Build Trust

Negotiation outcomes in Saudi Arabia are based on trust.

This is rooted in the value placed on relationships and personal connections in Saudi culture. As such, if your Saudi counterparts don’t trust you, then your negotiations are unlikely to be fruitful. Invest time, prior to the negotiations, getting to know your counterparts. You may, for example, invite them to dinner or to drink coffee with you. Also, be prepared to accept any invitations extended to you.

Keep these sessions informal and don’t discuss business. Instead, show an interest in getting to know your Saudi counterparts. This may mean you have to extend your visit to Saudi Arabia on either side of the formal negotiation process to allow this process to take place. Although it may seem excessive, it could essentially make the difference between negotiation success and failure.

Many westerners make the mistake of turning up in Saudi Arabia immediately before negotiations and disappearing straight after. The lack of value given to relationship building risks giving the impression that they are only interested in the business – an impression which is unlikely to conclude in positive outcomes.

2. Negotiations are Circular

Some foreigners find the circular nature of negotiations confusing.

Saudi Arabian negotiators can jump from topic to topic and discuss the same topic many times over. Far from being chaotic, this is in fact their way of fitting all the pieces of the jigsaw together. Moving back and forth from topic to topic also allows people time to digest new information, make mental connections and to move past uncomfortable subjects quickly.

It’s important, therefore, that you go with the flow of negotiations. If you’re someone that typically sticks to agendas, then be prepared to put these to one side as they have very little place in Saudi Arabia negotiations.

Negotiations should always end with some sort of formal ceremony. This is very important as it gives face. A photo of shaking hands or signing a contract is normal and should not be taken lightly. Photo by ITU Pictures on Flickr (CC BY 2.0)

3. Respect is a Must

Reputation and honour are important aspects of Saudi culture.

Appearing to insult the honour of your Saudi counterparts by talking over them, disagreeing publicly with them, publicly embarrassing them over facts / figures or telling them they are ‘wrong’ runs the risk of causing considerable upset.

As such, it’s important that you conduct yourself in a way that protects the honour of your counterparts. Respect people by giving them ample time to finish what they are saying and certainly don’t roll your eyes or openly disagree with them. If you have an issue with what someone has said, then discuss it in a way that doesn’t put the blame on anyone. Even if you become frustrated, avoid showing this. Instead, remain calm and smile where possible.

Gift-giving is also a central part of Arab culture and is another means in which respect is shown.

4. Intermediaries are Common

In cases where conflict develops between the two parties, it is the local custom to bring in an intermediary who both sides know and trust.

This individual acts almost like a broker in finding a reconciliation that benefits both sides. On the whole, remaining calm, being friendly, showing a willingness to communicate and where possible using humour, will help you get out of most tricky situations.

Women are only slowly making an appearance in negotiations. Be aware of the gender differences in Arab culture as well as the expectations Islamic doctrine has on how men and women should interact. Note how the women at this negotiating table are seated seperately. Photo by Richter Frank-Jurgen on Flickr (CC BY-SA 2.0)

5. Don’t Take Offence

In Saudi negotiation culture, Saudis can raise the volume of their speech considerably – to the point of near shouting.

However, this is their way of showing passion and commitment to the proceedings. They are not intending to be disrespectful and you certainly shouldn’t take offence. Keep calm and maintain a pleasant, friendly demeanour.

It's really important to be aware of some possible cultural differences in communication and manners, to also help you make a good impression.

6. Avoid High-Pressure Tactics

Although haggling is a key part of Saudi negotiation culture, high-pressure tactics are not.

If you behave in such a way, then your approach is likely to backfire on you.

Win-wins are also a key part of Saudi negotiation culture. As such, try to give concessions as often as possible as this will be perceived well by your Saudi counterparts and they are likely to try and return the favour to you too.

If you are new to negotiating with a different culture it's also a good idea to get to grips with some of the basics around cross-cultural negotiation.

Negotiating with Saudis

So to conclude, if you want to negotiate successfully with Saudis, you need to:

1. Build trust & invest time in relationships
2. Appreciate that negotiations can be circular
3. Show respect and deference
4. Use intermediaries
5. Not take offence easily
6. Avoid high-pressure tactics

If you want to learn more about Saudi business culture, why not take our great new e-Learning course?

It's a 30-minute video packed with information on how to best present yourself in Saudi, or when working with Saudis.

Here's a quick look at some of the course video.

CLICK HERE TO TAKE A SAMPLE OF THE SAUDI ARABIA COURSE

Main photo by IAEA Imagebank on Flickr (CC BY 2.0)