Cultural Similarity and Supplier Negotiation Behavior: Strategic Insights from the Costa Rican Retail Industry
DOI:
https://doi.org/10.1108/3tgesx25Keywords:
supplier negotiation behavior, cultural similarity, negotiating actions, in-depth interviews, strategic decision-makingAbstract
Although cultural similarity is often considered to facilitate the development of negotiations from a win-win or value creation approach, the evidence obtained calls this assumption into question. Recognizing negotiation as a critical component of organizational strategic processes, this study challenges the traditional integrative/competitive dichotomy commonly used in negotiation behavior analysis. The study adopts an abductive reasoning approach, enabling an iterative dialogue between empirical observations and existing negotiation theory. From a methodological perspective, the research is positioned as a theory elaboration study, aiming to refine and extend established negotiation frameworks rather than to test predefined hypotheses. Based on 21 in-depth interviews with professional buyers engaged in customer/supplier negotiations at four leading supermarket chains in Costa Rica, which together represent more than 80% of the national supermarket market share in the country. The study examines how the degree of cultural similarity influences the three categories of negotiating actions: inappropriate competitive, acceptable competitive, and integrative. The findings show that greater cultural similarity does foster more integrative actions but does not reduce the occurrence of acceptable or inappropriate competitive actions. These insights are relevant both academically and professionally, particularly in the fields of business and strategic decision-making.
Downloads
References
Adam, H., Shirako, A., & Maddux, W.M. 2010. Cultural variance in the interpersonal effects of anger in negotiation. Psychological Science, 21 (6), 882-889. https://doi.org/10.1177/0956797610370755
Akaliyski, P., Vignoles, V. L., & Minkov, M. 2025. Individual’s Psychology and Society’s Culture. In S. Liu, A. Komisarof, Z. Hua, & L. Obijiofor (Eds.), The Sage Handbook of Intercultural Communication (34–48). SAGE Publications Ltd.
Arvanitis, A. (2021). Negotiation is about entitlements, not interests. Symbolic Interaction, 44(2), 150–166. https://doi. org/10.1177/09593543211008987
Barkema, H.G., Bell, J. H., & Pennings, J. M. 1996. Foreign Entry, Cultural Barriers, and Learning. Strategic Management Journal, 17 (2), 151-166.
Bolman, P.E., Haugtvedt, C.P., Dickson, P.R., Fine, L. M., & Lewicki, R.J. 2000. Individual differences in intrinsic motivation and the use of cooperative negotiation tactics. The Journal of Business & Industrial Marketing, 15(7), 466-478. https://doi.org/10.1108/08858620010351535
Boon, J.A. 1972. Further operations of “culture” in anthropology: a synthesis of and for debate. Social Science Quarterly, 53 (2), 221-252. https://www.jstor.org/stable/42858955
Brett, J. M., Gunia, B. C., & Gelfand, M. J. 2023. Culture and negotiation strategy: A framework for future research. journal of international business studies, 54, 421–443. https://doi.org/10.1057/s41267022-00566-8
Brett, J.M., & Okumura, T. 1998. Inter and intra-cultural negotiation: U.S. and Japanese negotiators. Academy of Management Journal, 41 (5), 495-511. https://www.jstor.org/stable/256938
Calzada, L. 2016. Retail Foods Report. Global Agriculture Information Network, U.S. Embassy San José, Costa Rica.
Campbell, N.C.G, Graham, J.L., Jolibert, A., & Gunther, M.H. 1988. Marketing Negotiations in France, Germany, the United Kingdom, and the United States. Journal of Marketing, 52 (2), 49-62. https:// www.jstor.org/stable/1251264
Caputo, A., Ayoko, O. B., & Amoo, N. 2018. The moderating role of cultural intelligence in the relationship between cultural orientations and conflict management styles. Journal of Business Research, 89, 1020. https://doi.org/10.1016/j.jbusres.2018.03.042
Caputo, A., Ayoko, O. B., Amoo, N., & Menke, C. 2019. The relationship between cultural values, cultural intelligence, and negotiation styles. Journal of business research, 99, 23-36. https://doi.org/10.1016/j. jbusres.2019.02.011
Carnevale, P.J.D., O’Connor, K. M., & McCusker, C. 1993. Time pressure in negotiation and mediation. In O. Svenson, & A.J. Maule (Eds.). Time pressure and stress in human judgment and decision making. Plenum, New York.
Córdova, F. M., Durán, C., Sepúlveda, J., Fernández, A., & Rojas, M. 2012. A proposal of logistic services innovation strategy for a mining company. Journal of Technology Management & Innovation, 7(1), 177–185. https://doi.org/10.4067/S0718-27242012000100012
Čuhlová, R., & Demel, J. 2024. From diverse perspectives to unified agreements: Intercultural Negotiation Dynamics in the Digital Age. Culture and Organization. 30(1), 1534. https://doi. org/10.1177/23294906241253516
Chai, W. 2023. A cross-cultural analysis of negotiation styles in international business. International Business Review, 32(4), 26–40. https://doi.org/10.1016/j.ibusrev.2023.102161
Douglas, J.D. 1985. Creative interviewing. Sage, Beverly Hills.
FAO. 2021. Grandes cadenas de supermercados en Costa Rica. Efectos de su concentración sobre la producción agropecuaria y la nutrición. Roma. https://doi.org/10.4060/cb4509es
Fang, T.; Fridh, C., & Schultzberg, S. 2004. Why did the Telia-Telenor merger fail? International Business Review, 13 (5), 573-594. https:// doi.org/10.1016/j.ibusrev.2004.06.002
Fells, R., Rogers, H., Prowse, P., & Ott, U.F. 2015. Unraveling Business Negotiations Using Practitioner Data. Negotiation and Conflict Management Research, 8 (2), 119-136.
Fisher, G. 1988. Mindsets: The Role of Culture and Perception in International Relations. Intercultural Press, Yarmouth, ME.
Fisher, R, Ury, W., & Paton, B. 1983. Getting to Yes. Negotiating Agreement Without Giving In. Penguin Book, New York.
Freeman, R. E., Wicks, A. C., & Parmar, B. 2004. Stakeholder theory and “the corporate objective revisited”. Organization science, 15(3), 364-369. https://doi.org/10.1287/orsc.1040.0066
Fulmer, C.A., & Gelfand, M.J. 2015. Trust after violations: are collectivists more or less forgiving? Journal of Trust Research, 5, 109-131. https://doi.org/10.1080/21515581.2015.1051050
Ghauri, P.N. 2003. Introduction. In P.N Ghauri & J-C Usunier (Eds). International Business Negotiation, (2nd ed) (pp. 3-20). Pergamon, Oxford.
Graham, J.L., Mintu, A.T., & Rodgers, W. 1994. Explorations of Negotiation Behavior in The Foreign Cultures Using a Model Developed in the United States. Management Science, 40 (1), 72-96. https://www. jstor.org/stable/2632846
