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CHAPTER 3
MANAGING CONFLICT WITH EFFECTIVE
COMMUNICATION AND NEGOTIATION
CHAPTER INTRODUCTION
He who speaks has no knowledge, and he who has knowledge does not speak.
—Japanese proverb
Nothing done with intelligence is done without speech.
—Greek proverb
Chapter 3 presents a look at communication, conflict, and negotiation. After perceiving and
interpreting the behavior of others, you must then communicate your reactions and feelings
without causing conflict, especially if you communicate your dissatisfaction or negative
feelings/reactions. Cultures have characteristically different ways of dealing with conflict—by
confronting it overtly, sweeping it under the rug, or ignoring or avoiding it altogether. Conflict
occurs when disagreements and friction arise because of opposing interests and cultural
CHAPTER REVIEW OUTLINE
COMMUNICATION IN INTERNATIONAL BUSINESS
There are many ways communication savvy can pay dividends in international business—limited
only by the thousands of distinct languages spoken around the globe. Managers appreciate some
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The reasons are complex and multifaceted. Communication has a high value in the abstract;
however, in the heat of practice other things might get in the way. Experts point to another
reason for communication problems: a general under-appreciation of the fact that communication
comes in many different forms. Managers can get into trouble by assuming communication is the
same everywhere—language differences aside. There are many subtleties, not often understood
as “communication,” that can play a big role in cross-border interaction.
I. Verbal/Spoken Communication
The single most important way humans communicate is through spoken and written
language.
A. Features of the World’s Languages
Experts believe there are thousands of distinct languages currently spoken in the
world, not including the even larger number of off-shoots or dialects of languages.
Most dialects are spoken by relatively few people, and only about 6% of all
languages have more than 1 million speakers. More significantly, about ten
languages account for most of the communication on the planet (see Table 3.1)
Table 3.1 provides data that address language impact more directly, such as
several measures of impact, including the number of countries the language is
spoken, and an interesting index of a language’s overall influence. These data
30% of all Internet content is in English, 15% in Chinese, 9% in Spanish, and 8%
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in Japanese. The preponderance of data across measures makes it clear that
English, French, and Spanish are widely influential.
B. Speaking (and Not Speaking) Other Languages
1. Language Challenges in Business
The large number of languages across the globe presents several challenges to
international managers. While it is great to be fluent in a second (or third)
2. Americans and Foreign Languages
Americans speak relatively few second or third languages. About 80% of U.S.
households speak only English at home. Some say Americans’ lack of interest
in other languages is because the U.S. is relatively isolated geographically and
thus has had no great need for additional languages. This explanation does not
Others who are more critical suggest that part of the reason for Americans’
lack of foreign language proficiency may be ethnocentrism, a tendency to be
more inwardly focused on one’s own culture, and could be the cause of the
relatively low importance that Americans attach to this skill.
3. Global Impact of English
One factor that has made it easy for Americans to be complacent about being
monolingual is that the rest of the world uses English increasingly in business
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a. The sheer size of the American economy and the global reach of U.S.
multinationals has effectively made using English “good business sense.”
d. English is fairly simple grammatically, and consequently makes for a
relatively easy “common tongue” to use in international business.
English has been impactful within global commerce for decades and is the
most popular second language in Europe, Africa, Japan, and China, among
other places. It is probably no exaggeration to consider English the language
of international business—lingua franca. This global trend seems likely to
continue (see Global Innovations box).
Language competence pays dividends in international business, so American
reliance on the English language represents a competitive disadvantage that
will continue to cause problems. Data show that American firms continue to
underplay the value of multi-lingual employees, and this seems to translate
into little knowledge of foreign cultures as well—at least in the eyes of their
foreign business partners.
4. Communicating in Foreign Languages: Plenty of Room for Error
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Most of these mistakes happened despite the time that the communicators had
taken to think through and prepare the messages. Imagine the mistakes that
could be made in “real-time” communications where preparation is sketchy
and discussions are more spontaneous. Personal communication such as this is
likely to produce more problems.
Some researchers have suggested that language might be a good indicator of
underlying cultural values, such as individualism or collectivism. In a study of
39 languages spoken in over 70 cultures, it was found that when the main
language permits pronouns (such as “I,” “he,” or “she”) to be dropped, those
countries were much more likely to be individualistic. This effect was
replicated in a later study in which the researchers also showed that “pronoun
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5. Forms of Verbal Communication
Table 3.3, compares various forms of verbal communication between most
individualistic and collectivist cultures by presenting various communication
situations that people commonly encounter. One way to gain better cross-
The opposite of compliments are criticisms and, as shown in Table 3.3,
differences across cultures are also apparent. The need for group harmony in
collectivist cultures impacts how people deliver critical comments. Direct
criticism, such as insults, seems to be tied to culture. People in individualistic
cultures focus insults on the other person (e.g., “You are stupid,” “I hope your
project fails”), whereas insults in collective cultures bring other considerations
to the insult (“I wish financial failure on you and your firm”). Criticism is
delivered less frequently in collective cultures. Causing someone to lose face
in this manner is something that is to be avoided.
One lesson to take from this effect and the others is that international
companies should help employees understand that the type of apologies and
explanations provided by people are driven by culture-specific attitudes.
Managers who fail to adjust communication strategies risk provoking conflict
and creating misunderstandings in cross-cultural situations such as daily
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teamwork, regular interactions with employees and clients, and performance
appraisals.
II. Written Communication
Although traditional writing has declined in importance, one way to avoid potential
language misunderstandings is to communicate in writing. Writers should seek
writing and language expertise to carefully craft a message by monitoring its content
and related processes, especially for electronically delivered messages.
A. Electronically Delivered Messages
Electronic communication of many kinds, including greatly improved
teleconferencing and inexpensive face-to-face technologies, has moved ahead of
B. Using New Forms of Technology in Written Communications
Researchers have found that students vary in their willingness to experiment with
technology. Those from the high uncertainty avoidance countries of Hofstede’s
study are less willing to adopt new communication methods. While culture did
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III. Nonverbal Communication
Nonverbal communication is the transmission of messages without the use of words
or writing. This is a recognition that, beyond what is being said, often how it is said
provides information value. Nonverbal behavior includes features about appearance
(e.g., facial expressions, posture, and eye contact) and how you communicate (what
words or topics you emphasize, vocal characteristics, etc.).
A. Interpersonal Space, Touch, and Gestures
One important nonverbal behavior is the amount of physical space that we prefer
to have between us and others in social interaction, referred to as “personal space”
by most researchers. It is important to understand that cross-cultural messages are
While we have characterized space as a choice, it is often done automatically,
based on little or no thought. Gestures are usually more direct and deliberate, and
B. Emotions and Touch
Closely related to the concept of gestures are emotions people express across their
interpersonal space. Facial expressions of emotion are a common communication
method across cultures. Research shows that facial expressions of basic emotions
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of emotions can act as clues to one’s origins. This suggests that faint nonverbal
accents communicate features about us to others.
When people express emotion, they often reach out to others. This use of touch,
also called haptics by experts, can be a powerful nonverbal communication tool—
and one that varies cross-culturally.
C. Context
While nonverbal behavior can provide background for understanding what
someone is communicating, an even more subtle form of influence on perception
is due to context. Almost all evaluations occur within some kind of context. Table
Table 3.4 also shows countries that are relatively high-context cultures. Context
itself often provides people with information they can use to interpret what might
otherwise be an ambiguous event. Verbal or written information can take a back
seat to what is generally understood via the context. High-context cultures also
In low-context cultures such as Germany and the U.S., people tend to rely on
written communication because that medium allows for a permanent and explicit
record of a message. In high-context cultures such as Japan, however, people may
prefer verbal and face-to-face communications because these modes are more
dynamic and allow for greater subtlety than written messages. Experts warn that
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international managers need to understand that many Japanese are reluctant to
communicate via letters.
In a low-context culture it is less common to use these nonverbal features—
mostly because it is wise not to “beat around the bush.” Communication will be
more effective if concrete, specific, and logical statements are made. Due to these
contrasting approaches, it is rare to see a message that simultaneously
communicates well to both cultures.
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CONFLICT IN INTERNATIONAL MANAGEMENT
It is probably fair to say that there has always been conflict among people—and, most likely, that
there always will be. If it is, we should recognize this and prepare for it, starting with an
understanding of what cross-cultural conflict is and how to deal with it. That is the subject of this
section of the chapter
I. Causes of Conflict
While conflict has often resulted in violent interactions throughout human history,
there are also many examples of successful resolution of conflict, offering hope for all
of us.
A. Cross-Cultural Conflict
Not all conflict is bad, though it may prove challenging and some cultures try to
avoid it. Sometimes conflict helps focus people’s attention on getting things done.
Conflict between environmental groups and multinationals has acted to increase
awareness of sustainability around the world and has built “green” business
opportunities. Confrontations between social responsibility advocates and
business interests have also improved working conditions in developing countries.
While disagreement can be uncomfortable on a personal level, it also leads to
better understanding in some instances. Most performance reviews are two way,
with employees providing input that rounds out a manager’s evaluation. Conflict
often results in better reviews and better performance in the future.
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B. Understanding Sources of Conflict
International managers need a good understanding of the basic causes of conflict.
Language difficulties are one major contributor to conflict. Differing cultural
norms may give rise to conflict, especially when each side lacks an appreciation
C. Approaches to Conflict
An additional and important cause of conflict is the propensity for individuals in a
given culture to be involved with conflict in the first place. Some cultures go to
II. Managing Conflict Effectively: Stylistic Differences across Culture
If conflict is inevitable in international business, how can it be managed effectively to
minimize the damage or to capitalize on the benefits of confronting opposing
interests? There is much research on how people react to conflict once it occurs.
A. Conflict Styles
Conflict management research often focuses on what managers do once conflict
arises. There seems to be at least five unique styles of handling conflict once it
occurs, as shown in Figure 3.1, and this model contrasts two key elements:
1. Cooperativeness—which refers to your degree of concern about outcomes that
others might receive
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that people adopt a relatively consistent style and stick with it—often requiring
training to be able to react differently to conflict. Research also shows that even
within a culture, there are differences among individuals in conflict preference.
B. Culture-Specific Use of Styles
Some general culture-based approaches exist that can distinguish how groups of
people tend to handle conflict. It appears that many Americans like a good
argument, while the Japanese are not fond of open conflict. It is reasonable to
conclude that Americans tend toward the competitive conflict management style
C. Meaning of Conflict
Avoidance could mean different things in individual and collective cultures. In
collective cultures a high concern for others often drives the preference for
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when a reason for a request was provided, Americans’ sense of self and the
Chinese sense of others are more likely to be activated.
D. Parties to Conflict Situations
Experts point out that conflict preferences may vary depending on who is party to
the conflict. Some might be surprised to hear that managers from Turkey and
Jordan tend to use a general conflict handling style that is not all that different
from their American counterparts. This preference for a competitive style
III. The Role of Face in Conflict Prevention and Reactions
A. What is “Face”?
The concept of “face” is closely related to the contrasting issues of interpersonal
conflict on the one hand and decorum among people on the other. Face has much
to do with the need to obtain and maintain both self-respect and the respect of
others. One expert sets face squarely in the area of conflict and negotiation while
There are many ways that face can be lost, including inflicting personal insult
(intentional or not), forcing unnecessary concessions, highlighting a failure,
mocking cultural values, and damaging a relationship that has been cultivated
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B. Social Complexities of Face
The effects of culture often can be more complex than they seem at first. For
example, even within cultures there are certain social triggers that can make face
C. Practical Advice about Face
Overall, research paints a more complex picture of what face is and how to give,
get, and keep it. This makes applying these concepts a daunting task in practice,
especially for Westerners not used to doing business in Asia. Fortunately, experts
have provided some general suggestions to keep in mind when navigating around
problems with face in conflict and negotiation situations.
• Frankness in Asia is almost always rudeness; subtler, high-context
communication is the norm.
• Compliment but never criticize; even if presented with a situation in which
a critique or honest negative opinion is seemingly required, stay as
positive as possible.
• Asians are likely to laugh at awkward situations in order to “save face”;
they laugh in order to change the subject or to move forward.
IV. Other Responses to Conflict
What other reactions could people have when conflict arises? If the conflict is
egregious enough, people might hold a grudge and look for ways to strike back at one
another. In one study, researchers looked at what happened when conflict did occur.
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Instead of getting even, as just described, one might try to involve a third party to
resolve a conflict that has come into the open.
The issue of traditional values raises larger questions such as whether the likelihood
of seeking out third parties or mediators is more likely in individualist cultures as
opposed to collective-type cultures. Given the attention paid to referees and umpires
in professional sports in many Western countries, and the well-documented tendency
for collective cultures to underplay conflict, would we expect people in Eastern
cultures to bring more attention to conflict by involving external, third parties?
UNDERSTANDING INTERNATIONAL NEGOTIATION
Knowing how to manage conflict—either to stop it from occurring or to suppress any negative
effects after it does arise—is a valuable skill in the global and domestic work environment. One
extremely important, complex set of skills that is just as valuable is the ability to negotiate well.