Negotiations Culture and Trust

Running Head: Culture, Trust, and Negotiation

Paying a price: Culture, trust, and negotiation consequences

Brian C. Gunia

Jeanne M. Brett

Northwestern University

Kellogg School of Management

Amit K. Nandkeolyar

Dishan Kamdar

Indian School of Business

In-Press at Journal of Applied Psychology

© 2010 American Psychological Association. http://www.apa.org/pubs/journals/apl/index.aspx.

This article may not exactly replicate the final version published in the APA journal. It is not the

copy of record.

Culture, Trust, and Negotiation 1

Paying a price: Culture, trust, and negotiation consequences

Abstract

Three studies contrasting Indian and American negotiators tested hypotheses derived from theory

proposing why there are cultural differences in trust and how cultural differences in trust

influence negotiation strategy. Study 1 (a survey) documented that Indian negotiators trust their

counterparts less than American negotiators. Study 2 (a negotiation simulation) linked American

and Indian negotiators‘ self-reported trust and strategy to their insight and joint gains. Study 3

replicated and extended Study 2 using independently-coded negotiation strategy data, allowing

for stronger causal inference. Overall, the strategy associated with Indian negotiators‘ reluctance

to extend interpersonal (as opposed to institutional) trust produced relatively poor outcomes. Our

data support an expanded theoretical model of negotiation, linking culture to trust, strategies, and

outcomes.

Culture, Trust, and Negotiation 2

Introduction

The expansion of global economic activity has spawned theoretical interest in the impact

of culture on negotiation (Requejo & Graham, 2008). This interest has led to research

documenting reliable and often remarkable cultural differences in the strategies that negotiators

use (Adair & Brett, 2005; Adair, Weingart, & Brett, 2007; Fang, 1999; Harnett & Cummings,

1980; March, 1988). For example, Adair and Brett...