The articles explore the international negotiation and cultural aspects. In addition this paper assesses the impact of social capital on the dynamics of business negotiations. It is argued that, while conflicting negotiation styles create interactional difficulties between the Japanese and the Americans, the impact of the interactional difficulties on the processes and outcomes of negotiations is critically dependent on the pre-existing level of social capital among the negotiators. According to Rajesh Kumar 1999 social capital has three major components, namely cognitive, relational, and structural. The cognitive dimension best features the level of distributed comprehending among the actors; the relational dimension focuses on the affective bonding among the actors; while the structural dimension best features the nature of interconnectedness amidst the actors. (Kumar R. 1999).
Although there is considerable evidence documenting the dysfunctional impact of conflicting negotiation scripts on negotiation processes and outcomes it is not necessarily the case that a negative emotional dynamic and/or attribution biases among the negotiators will under all circumstances lead to a sub-optimal outcome or to an outright negotiation failure. (Wengrowski, B. S. 2004)
As argued earlier, there are a number of different variables that critically determine whether the negotiators are able to successfully overcome the expectation inconsistencies inherent in the intercultural negotiation process. One such variable is the environment of the pre-existing relationship amidst negotiators approaching from distinct heritage backgrounds. This variable is of key importance for a number of distinct reasons. First, all discussions are contextually embedded in the chronicled past, the direct present, and the potential future. Prior interactions may have engendered believe or disbelieve among the negotiators; the direct present and the potential future may amplify, diminish, or sustain the grade of trust/distrust amidst the negotiators. In the case where the negotiators have had no prior history of interaction amidst themselves, believe or disbelieve is not likely to be especially powerful and this may itself become a component of significance, depending on how the interaction unfolds over time. Pre-existing trust/distrust is important because it affects the motivation of the negotiators to overcome the dysfunctional ties inherent in the interaction.
Although analytically independent, the three dimensions alluded to overhead have the promise for mutually strengthening each other. For demonstration, a high grade of shared comprehending amidst the actors is likely to reinforce the individual connection among them and vice versa. Likewise, a high grade of interconnections not only ...