Negotiation in China

As Ogilvie and Kidder (2008) have defined negotiation as the process by which individuals, business parties or countries exchange services, goods and decide an exchange rate for the exchanged goods. Both parties in negotiation try to articulate or influence each other in order to fulfillment of their own objective. Ma and Jaeger (2005) have done research work on negotiation process of China and found that business negotiation in China is affected by multitude of factors such as social beliefs, tenure of the deal making process, relationship, flexible nature of the negotiation and many others. Ma and Jaeger (2005) have argued that economy of China is booming and gross domestic output of the country is growing at an average of 9% which is greater than GDP growth of USA and other European countries. Hence, there is no surprise why American entrepreneurs are moving to China to open business units and American companies are looking establishing partnership with Chinese companies and government. Interesting fact is that, research work of Ma and Jaeger (2010) has revealed in more than 40% cases, American entrepreneurs fail to negotiate with Chinese companies due to reasons like lack of understanding of American entrepreneurs about the business and social culture of china, language barrier to understand Chinese language etc. However, very few researchers have tried to understand the inter-correlated nature of independent variable which ensure effectiveness of negotiation in China hence it can be assumed that there is large gap exist in the literature about negotiation in China. Hence the researcher working as media consultant for Academy of International Business (AIB) will conduct a quantitative study in order to analyze the relation between internal variables related to negotiation process in China. Purpose of the Study Key purpose of the study was to determine what special insights outsiders need in order prepare negotiation in China. The report will answer following questions. Research Question 1: What are the important factors while emphasizing on relationship aspect of negotiation in China? Using this research question helped the researcher to understand conjoint impact of three micro variables such as relationship, social gathering and presence of translator on overall effectiveness of negotiation in China. These three micro variables defined the overall on impact of relationship in negotiation in China. Research Question 2: What are the important factors while emphasizing on process aspect of negotiation in China? Using this research question helped the researcher to understand conjoint impact of three micro variables such as fixed term, flexibility in negotiating process and slow deal making process on overall effectiveness of negotiation in China. These three micro variables defined the overall on impact of process aspect in negotiation in China. Methods and Procedure Used Data for this research report was collected by sample survey process with the help of close ended questionnaire. Academic peer reviewed journals were used as secondary data sources in order to develop the theoretical