Anna Dudziak VERBAL AND NON-VERBAL COMMUNICATION IN NEGOTIATIONS OF POLISH COMPANIES WITH THEIR FOREIGN PARTNERS

Transcription

1 Anna Dudziak VERBAL AND NON-VERBAL COMMUNICATION IN NEGOTIATIONS OF POLISH COMPANIES WITH THEIR FOREIGN PARTNERS PHD DISSERTATION - ABSTRACT Promotor: Prof. zw. dr hab. Zdzisław W. Puślecki Katedra Zarządzania Międzynarodowego Poznań 2016 Wydział Gospodarki Międzynarodowej al. Niepodległości 10, Poznań tel wgm@ue.poznan.pl

2 ABSTRACT Effective negotiations are one of the most important human skills in the modern world, useful in every area of human activity. Aspects of the negotiations can be considered on many levels, including theory and research in the field of economics, communication, psychology, political science, law, sociology [Lewicki et al. 2005, p. 18]. They are of particular importance for most managers, as progress in a certain area frequently requires a dialogue in order to achieve the necessary agreement. Negotiations in international business require the knowledge of not only the essence of negotiations, but also the knowledge of significance of verbal and nonverbal communication as the areas determining their effectiveness. As a result, the role of negotiations increases and effective communication allows to achieve predefined targets. Recent years mark noticeably progressive process of internationalization of Polish companies, and the world literature pays much attention to identifying the motives of internationalization of enterprises [Witek-Hajduk 2009, p. 256]. International transactions gain significant importance in current development, as the failure or success often depend on the communication skills of people who sit at the negotiating table. Stable economic environment attracts the inflow of foreign capital, foreign investors, consequently leading to an increase in the frequency of negotiations. Global competitiveness forces the proper preparation of persons running international businesses [Salacuse 1994, pp. 9-10]. The research contributes to our understanding of the differences in verbal and nonverbal communication with foreign partners. In addition, the research attempts to complete conclusions about the impact of differences in verbal and nonverbal communication on the negotiations of Polish companies with foreign partners. The interdisciplinary nature of interpersonal communication makes this issue become the subject of intensive research in the global dimension. Publications relate to, among others, business communication and differences in nonverbal communication among members of different cultures. Analysis of literature allowed to formulate the research problem in this way, that "there is a correlation between verbal and non-verbal communication and the effectiveness of the negotiation of Polish companies with foreign partners". 1

3 Research on nonverbal communication was begun by anthropologist R. Birdwhistell, who said that a man has and can recognize about 250 thousand facial expressions, and uses them for ten or eleven minutes daily [Pease A. and Pease B. 2008, p. 32]. Earlier, released in 1872 work "The expression of emotions in man and animals" by Charles Darwin was the basis for further research on facial expressions and body language, and since then, nearly a million gestures and non-verbal signals were recorded and interpreted [Pease A. and Pease B. 2008, pp. 31]. Analyzing Polish literature can lead to the conclusion about the insufficient number of recent publications on the research on the impact and importance of verbal and nonverbal communication on the negotiations of Polish companies with foreign partners. Taking into account this fact we can say that the issue of the research significantly enriches the scientific achievements in this field. The objective scope of the dissertation includes verbal and non-verbal elements of communication in negotiations of Polish companies with foreign partners, while the subjective scope concerns the managers of Polish companies, holding negotiations with foreign partners. The main objective of the doctoral dissertation is to verify the impact of verbal and nonverbal communication on the effectiveness of negotiations of Polish companies with foreign partners. Implementation of the main goal involves specific objectives, i.e. defining and characterizing the negotiation process, the identification of styles of verbal communication and verification of their impact on the course of negotiations on the differences in non-verbal communication with representatives of the markets of European, American, Asian and Arabic cultures, identification of the elements of nonverbal communication and verification of their impact on the course of negotiations of Polish companies with foreign partners, as well as the presentation of the impact of verbal and non-verbal negotiations of Polish companies with foreign partners in the light of the in-house research. Doctoral thesis combines theoretical and empirical research, which verified the truth of testing hypotheses. It has been prepared based on the method of analysis, synthesis and quantification and quality, allowing to indicate the diversity and intensity of negotiations conducted by Polish operators with foreign partners. The intention was to use the comparative method (method of analogy), which enabled to identify the principal differences and similarities in the course of negotiations between the investigated companies. Thesis confirmation and verification of hypotheses involve the definition and interpretation of information to clarify the results and finding an answer 2

4 why the fact took place, and what is its significance [Mendel 2009, p. 46], and inference on the basis of the collected material. Techniques of empirical research like questionnaire were employed for this purpose and scientific discourse has been enhanced through the use of in-depth interview. The managers of Polish companies have been subjected to the research - by filling out the questionnaire they responded to questions about the frequency of negotiations outside the country, the scale and direction of cooperation with foreign partners and the importance of verbal and nonverbal communication in business activities with foreign partners. A key area of research is to verify the impact of cross-cultural communication on the negotiations by the tested entities. The research involves the prospect of time form September 2014 till September The analysis covers the influence of directions of foreign investment by Polish companies on the effectiveness of negotiations for the assessment of intercultural verbal and nonverbal communication made by the managers of Polish companies during the research. The paper consists of an introduction, four chapters, conclusion and bibliography. The first chapter presents the general characteristics of the negotiations, which enabled the understanding of the concept of negotiations, their determinants, as well as the purpose and the different stages of the negotiation process. Next part includes the discussion on the development of negotiations in the modern international business. Some definitions of the term negotiation were presented, i.e. A. Fowler's, who interprets it as "a process of interaction, in which at least two sides perceive the need for a common commitment to achieve the goal, but initially they have differing expectations and they try to use arguments and persuasion to overcome the differences and find a mutually satisfactory solution" [Fowler 2001, p. 12]. It was pointed out that the negotiations are an essential element of international business. Regardless of the area and the sector in which the companies operate, the ability to hold talks with contractors significantly impacts on interpersonal relationships, translating into the quality and efficiency of the operations. Knowledge of the various stages of negotiations increases the chances of achieving the targeted objectives and establishing and maintaining good relationships with business partners. Cultural, psychological and ethical conditions shape the negotiations, their conduct and behavior of negotiators. The impact of culture on the process of communication has been discussed in Chapter II and III. In the first chapter characterized, among others, psychological conditions by discussing the techniques of influence and the use 3

5 of persuasion and manipulation. The impact on others and the defense against succumbing to the people is an indispensable feature of professionals influencing contractors, thus including the negotiators. It was also stressed that negotiations in international business require taking into account many factors that are not present during the negotiations with the national partners. A different legal system, communicating in a foreign language, incomprehensible non-verbal behavior, different culture are only some aspects of the negotiations conducted outside the country, which should be taken into account when preparing for expansion into foreign markets. The increase in the intensity and scale of today's business contributes to the growing number of cross-cultural contacts. In addition, activity in foreign markets requires the selection of a marketing strategy, management model and, in the case of cooperation with a foreign company, its form and scope, allowing optimum benefits and minimizing losses and risk. The choice of these strategies is preceded by defining business objectives- both short-term and long-term. It especially refers to business contacts, which require the participants to clarify the priorities of the action. Access to talks with clearly defined objectives increases the chances of their successful and satisfying ending. The chapter also characterized stages of negotiations and stressed the importance of setting boundaries respect which can allow to decide to withdraw from the negotiations when the position of partner goes beyond the accepted limit. Analyzing the final stage of negotiations, which is to conclude the contract and the implementation of the agreement, we presented the concept and elements of the contract. The final section discusses the negotiation process in the contemporary international business and explains the reasons for the internationalization of enterprises. Company performance in the domestic market creates no need to use the unstable currencies or take into account the different legal and political aspects and use foreign languages, but today's changes in business makes traders at some point are forced to seek new opportunities in the markets abroad. Ongoing business processes result in an increase in the number of strategic alliances, which are a manifestation of the dynamic development of various forms of cooperation between economic operators and lead to an increase in the importance of interpersonal communication, which in the area of business manifests itself primarily in the ongoing negotiations, as well as marketing activities. The second chapter characterizes verbal communication as an area of intercultural communication. Due to the above, we discussed the role of verbal communication and explained the concept of intercultural communication, defined as "the process 4

6 of communication between members representing different cultures [Malinowska 2004, p. 34]. Understanding the definition of intercultural communication needs to clarify the concept of culture and, therefore, the chapter presents a few selected definitions of the term "culture" and its characteristic elements. The chapter also includes the classification of cultures by Hofstede, Gesteland and Trompenaars and Hampden- Turner, whose knowledge helps in the understanding cultural diversity and the resulting differences in verbal and nonverbal communication. The styles of verbal communication, and the significance of the model of E.T. Hall in intercultural verbal communication were discussed. Belonging to high or low context culture is expressed in the way of the verbal communication, i.e. the style of expression. The process of communication influences the profitability of businesses and the ability to communicate becomes a key determinant of the effectiveness of the manager and its ability to manage human resources and build business relationships. Effective talks become a necessity for companies that want to operate effectively in the international arena. Nowadays, the communication process is determined by many factors, among which the cultural diversity is of an utmost importance. The style of communication and negotiation is largely determined by culture. Verbal communication between international corporations is associated not only with the knowledge of a foreign language, but also the ability of managing direct or indirect messages, the practice of formal or informal relations, tolerance to interrupt speeches or acceptance of the long intervals by one part of the dialogue. It is therefore important not only "what" we communicate, but also "how" we do it. Increasing the level of knowledge about cultural differences in business is vital in building cultural competence. Communication is now seen as a priority, both nationally and internationally. Functioning in a global environment that makes intercultural communication is becoming increasingly important. Certainly, it is impossible to know all cultures, but it is important to realize that they have a significant impact on the style of expression, the style and way of holding negotiations in international business. Theoretical knowledge may, however, prove to be inadequate, which is why skills acquired through practice and based on the experience of a negotiator who can adapt to and respect the different style of communication of partner and despite differences hold effective trade talks are so valuable. Effective communication is associated with the ability of correct interpretation and response to the feedback signals. Difficulties and misunderstandings in verbal communication in an international environment 5

7 are inevitable, therefore it is important to draw the appropriate conclusions allowing to avoid them during the next business talks. The third chapter deals with an important issue involving non-verbal communication in international business. Its importance in the communication process is confirmed by the results of A. Mehrabian, which shows that 55% of communication information is transmitted by means of non-verbal communication, 38% by intonation (tone of voice), and only 7% through words, that is the content of speech [Mehrabian 1968]. The first part discusses the concept and importance of non-verbal communication in international business, and indicates its essential functions. Then, the difficulties associated with the interpretation of the elements that make up the non-verbal communication are presented. Interpretation of hand gestures, head gestures and facial expression, proxemics, haptics and eye contact were characterized. In this way, it was shown that nonverbal communication has a significant impact on the effectiveness of communication with representatives of other cultures. Ignorance of the differences of cultural background can have a negative impression and hamper agreement. The global nature of today's business contributes to the growth of business connections in which an increasingly important role is played by the knowledge of local rules of communication. Contact with representatives of other cultures can be difficult, even if team members in the company have knowledge of reading non-verbal clues such as body posture, gestures, facial expressions that help to decode the meaning of words. Effective verbal communication is not only a knowledge of body language or the acceptance of distance, but also self-presentation that allows to make impression approximating to achieve the intended purpose. Much attention is paid to the discussion of self-presentation as part of non-verbal communication. At the same time, it should be stressed that the notion of a wide range of non-verbal communication and the fact that many of its elements often occur at an unconscious level makes it impossible to identify and meet all its dimensions. E.T Hall advocated a comprehensive and realistic assessment of both oneself and others, which will allow to read "silent messages" with the same ease as those printed or spoken [Hall 2003]. Hence, the role and significance of intercultural communication is crucial since, as the experience of managers operating in foreign markets shows, the knowledge in the area of non-verbal communication facilitates the talks with foreign partners and promotes establishing positive business relationships. 6

8 The fourth chapter presents general characteristics of the surveyed enterprises. It presents the concept of enterprise and the classification of enterprises according to their size criteria. Small and medium-sized enterprises play an important role in the economy, however, depending on the level of economic development of the country, the definitions of small and medium-sized enterprises are diverse, and the distinction between small and medium-sized enterprises (SMEs) is both quantitative and qualitative. It also discusses the concept of innovation and competitiveness as a process closely linked to the development of modern enterprises. Then the methodology of empirical research is characterized, and the last part presents the results of the research. Studies carried out in Polish enterprises enabled the verification of research hypotheses. However, the answers revealed unambiguous indication of the factors influencing the effectiveness of the negotiations and that it is a complex issue, which faces many difficulties. Interpretation and perception of barriers resulting from verbal and nonverbal communication is determined by many factors, including subjective assessment of the manager, company size, scale of contacts with foreign partners, experience in contacts with representatives of other cultures. Certainly, it can be said that the knowledge of the differences in verbal and nonverbal communication - due to their impact on the effectiveness of communication and the growing scale of business connections - is a valuable and extremely important thing from the point of view of companies operating in foreign markets. The final part formulated conclusions and generalizations resulting from studies in correlation with presented research hypotheses. The conducted study has allowed to verify the hypothesis that there is a relationship between the frequency and scale of conducting business transactions and the effectiveness of the negotiation of Polish companies with foreign partners, and the hypothesis that knowledge of the differences in intercultural communication affects the efficiency of Polish companies negotiating with foreign partners. Job experience is one of the factors significantly influencing the answers, the experience of the manager in the ongoing negotiations with foreign partners. Conducted in-depth interview with selected managers confirmed that non-verbal communication was a much greater barrier at the beginning of the business relationships, and the frequency and number of contacts meant that at the moment, this aspect is not a factor in the final outcome of negotiations. The answers obtained in the course of the interview suggest a tendency that with an increase in the frequency and scale of the negotiations with foreign partners, non-verbal communication is less and less 7

9 perceived as a barrier to communication. In addition, knowledge of the known differences in the course of negotiations allows to avoid misunderstandings in future negotiations, which is reflected in their effectiveness. At the same time, the information derived from the questionnaire and interview by in-depth method and remarks of managers allow to conclude that intercultural communication is not perceived by managers of Polish companies as a very important barrier. Lack of training in this field confirms that the managers do not treat the training of intercultural negotiation as contribution to the improvement of relations with foreign partners and ultimately the profitability of the company. It can be said that despite the numerous world literature in the field of intercultural communication, Polish managers participating in the study did not perceive it as a barrier impeding effective negotiations. In the current world, the role of negotiation increases and effective communication can achieve aggressive targets. The conclusions of the research can be used in practical activities of managers of Polish companies in negotiations with foreign partners, and the analysis of the communication system can be used also for improving the business talks of employees. In the literature, we can meet with the opinion that the understanding of the role of culture in international business is the key to success. Negotiations in international business require awareness of the importance of verbal and nonverbal communication as areas which determine their effectiveness. Knowledge of cultural differences has an impact on the effectiveness of business communication by building intercultural competence. Building competitive advantage favors the ability to communicate. In the era of growth in the scale and intensity of the business talks, the ability to communicate with representatives of different countries and cultures is especially important. Although it is impossible to know all the differences in each culture, we should be aware of their existence. The dissertation, by analyzing the course of the verbal and nonverbal communication in negotiations of Polish companies with foreign partners, showed the impact of its components on the effectiveness of negotiations. Numerous studies and the scale of interest in this area of research in the world literature confirm that all the considerations and conclusions regarding the conduct of verbal and nonverbal communication in a diverse cultural environment have not only theoretical value, but above all they are very pragmatic. Verbal and non-verbal communication in international business include not only cultural factors, but also other determinants 8

10 conditioning the course of the discussions among different legal systems, psychological, ethical and social factors. All of these dimensions and the dynamic growth of the relationship between business partners in the world makes a complete understanding of the communication process, including negotiation, is still the subject of research and observation. 9