Cultural Dynamics in Negotiation: A Comparative Study of Italy and the Philippines

Abstract

Negotiation, as a fundamental aspect of human interaction, is deeply influenced by cultural values, norms, and practices. This master thesis examines the impact of culture on negotiation processes, focusing on a comparative analysis between Italy and the Philippines. Drawing on Hofstede's cultural dimensions theory the research investigates how cultural differences manifest in negotiation styles, strategies, and outcomes within these cultural contexts. Through qualitative analysis, including interviews and case studies, the study explores cultural nuances such as power distance, individualism-collectivism, uncertainty avoidance, masculinity-femininity, and long-term orientation. The findings reveal significant variations in negotiation approaches between Italy and the Philippines, shaped by cultural values deeply ingrained in societal structures. In Italy, negotiation is often characterized by assertiveness, direct communication, and emphasis on building personal relationships, reflecting a high-context culture. Conversely, negotiations in the Philippines tend to prioritize harmony, and relationship-building, reflective of a collectivist culture with a focus on saving face. Moreover, the research uncovers the role of cultural dimensions in influencing negotiation strategies, such as the importance of trust and verbal communication cues. By explaining the interplay between culture and negotiation, this study contributes to a deeper understanding of how cultural dynamics shape negotiation processes and outcomes through data extrapolated from a negotiation experiment that includes 40 participants from Italy and the Philippines.