Bahasa, Batik, and Bargaining: An Exploratory Study of the Negotiation Styles and Behaviors of Indonesian Managers

Abstract

This study investigates the effects and impacts of national cultural influences upon the processes involved in international business negotiations, with particular reference to Indonesia. The importance of Indonesia as a major economy in the South East Asian region, has led to growth in international trade. This growth has increased the need for global interaction and communication and a lack of cultural understanding raises the prospect of cultural conflict, between Indonesian managers and international managers within international business negotiations. Using the findings of the GLOBE, and Hofstede studies on national culture, the case is made that the cultural orientation identified in these studies demonstrates how Indonesian managers will be expected to behave in international business negotiations. Through understanding and awareness of these Indonesian negotiation behaviors and styles, international managers can reduce the incidence of ambiguity and conflict, thus increasing the potential likelihood of negotiation success in Indonesia.

Keywords: Communication, GLOBE Project, Hofstede, Indonesia

JEL Classification: F23, M10