Culture and business networks: International business negotiations with Arab managers

• Published in: International business review 2013-06, Vol.22 (3), p.578-590
• Main Authors: Khakhar, Priyan, Rammal, Hussain Gulzar
• Format: Article
• Language: English
• Subjects: Arab world; Bargaining power; Business networks; Business strategies; International business negotiations; Lebanon; Middle East; Multinational enterprises; National culture; Political instability; Time sensitivity; Uncertainty; Volatility; Wasta
• ISSN: 0969-5931; 1873-6149
• DOI: 10.1016/j.ibusrev.2012.08.002

► We explore style used by Arab managers in international business negotiations. ► Political and institutional changes in the region provide new opportunities for research. ► Business networks and referent power (wasta) are used to win business deals. ► Region's political instability affects location of business negotiations. The Arab world is an important economic region due to its natural resources, geographic location and political influence. However, limited attention has been paid to researching and understanding the way business is conducted in this region. We address this gap by exploring the key socio-economic, cultural and political factors that influence the negotiation process between Arab and non-Arab managers. Semi-structured interviews were conducted with 30 Arab managers in Lebanon with experience in international business. The findings of the study show that: Arab negotiators place emphasis on building relationships and use referent power (wasta); the political uncertainty influences the bargaining power of the Arab negotiators and political volatility in the country influences the Arab managers’ use of time during negotiations.