IMPACT OF NATIONAL CULTURE ON TRUST BUILDING IN INTERNATIONAL BUSINESS NEGOTIATION PROCESS:Case Study of Finnish Business Negotiation

Abstract

Most researchers argue that trust in negotiation significantly determines problem-solving effectiveness. Present paper aims to identify effects of national culture on trust building across business negotiation stages.

The theoretical part proposes a conceptual framework for trust transformation in negotiation process under national culture context, where the main concepts and their interaction are analyzed. Definition and approaches of negotiation, cognitive trust, resilient trust, and national culture dimensions are highlighted as main cues to serve the study. Since cooperative negotiation generates trust, the study proposes culture-specific context is within and across trust formation.

Analysis of empirical part is on grounds of single case study. It contains presentation and analysis of negotiation process between Finnish and Mexican companies. Face to face interview is conducted to record trust building in different negotiation stages. Answers of respondent are according to negotiating experience, which confirms conceptual model.

The results show that values and behaviors of negotiator influence cognitive trust building process, but the maintenance of ongoing cooperative relationships are consistent with reciprocation of priority information, which generates resilient trust. Transformation of trust is along with negotiation process, where national culture dimensions play different roles to direct respond’s judgment, and forms trust-based perspective at last.