Posted: October 20th, 2022

The Influence of Culture on Business Negotiations between Danish and Japanese Companies

The Influence of Culture on Business
Negotiations between Danish and
Japanese Companies

Abstract
Most of the export from European countries is sold to other European countries. By making trade
agreements the European Union works towards expanding the trade conducted with countries
outside of Europe. At the moment a free trade agreement between the European Union and Japan
is being finalized, meaning that Denmark, among other European countries, will likely see a major
increase in trading with Japan in the years to come. One of the major aspects to determine the
success of a company in the context of international business is their ability to negotiate profitable
deals with potential, as well as, current partners. This portends a necessity for Danish companies
to research and understand how to negotiate across cultures when they are to initiate business
with Japanese companies.
The purpose of this thesis is to investigate the relation between culture and business negotiations
in order to understand how culture will influence negotiations in a business setting between the
companies of Danish and Japanese origin.
The approach used to figure out how to research and answer the problem statement was first
established in the methodological framework. A single case research study was selected as the
qualitative research approach to collect the empirical data. The case study was conducted by
interviewing an employee about his personal experience in negotiations with numerous of
Japanese businesspeople. The theoretical framework contains the theories and concepts used to
execute the empirical research. Besides the theories used to evaluate the important concepts of
culture and business negotiation, the theoretical framework contains a review of the country
specific style of negotiation, as well as, an analysis of the cultural differences between Denmark
and Japan.
The empirical research found evidence for a significant influence of the cultural values in
negotiations across the cultures of Denmark and Japan. Most noteworthy is the influence of the
direct in contrast to indirect communication patterns, which was found to have an affect on the
exchange of information in addition to the techniques used to solve conflicts. The slow decision
making process in Japan was caused by the collectivistic nature of the society, along with the high
uncertainty avoidance. In Denmark the opposite was the case, with an individualistic society with
low uncertainty avoidance, making the decision making instant. Certain theories placed Danish

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negotiators to be more likely to use a distributive strategy. However, the empirical results, along
with other sources reviewed in the theoretical framework, confirmed the integrative strategy to
be the most widely used in Denmark. The integrative strategy was also found to also be widely
used in Japan. The similar strategies used by Denmark and Japan especially work well when both
parties use the strategy.
The implications of the empirical results serve to help Danish negotiators seeking to carry out
business in Japan. While the main purpose of this thesis is to understand how the Japanese and
Danish cultures influence the Danish negotiators, it is important to look at the cultural influence
from both a Danish and Japanese perspective. Knowing how to deal with them may imply the
difference between success and failure in doing business at all with Japanese companies. By
investigating both the Danish and Japanese experience of the negotiations with the opposing
party, a Danish negotiator can prepare what to expect, as well as, how to avoid any possible pit
falls as a cause of cultural misunderstandings.

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Table of Contents
1. INTRODUCTION…………………………………………………………………. 5
1.1 PROBLEM STATEMENT …………………………………………………………………………….. 6
1.2 STRUCTURE OF THE REPORT ……………………………………………………………………….. 6
1.3 DELIMITATION ……………………………………………………………………………………… 6
2. METHODOLOGICAL FRAMEWORK ……………………………………… 7
2.1 RESEARCH DESIGN …………………………………………………………………………………. 7
2.2 RESEARCH APPROACH……………………………………………………………………………… 7
2.3 CASE STUDY RESEARCH ……………………………………………………………………………. 8
2.4 RESEARCH TOPIC …………………………………………………………………………………… 8
2.5 RESEARCH QUESTIONS …………………………………………………………………………….. 9
2.6 DATA COLLECTION …………………………………………………………………………………. 9
2.7 DATA ANALYSIS ………………………………………………………………………………….. 10
3. THEORETICAL FRAMEWORK………………………………………………. 11
3.1 CULTURE ………………………………………………………………………………………….. 11
3.1.1 Culture Defined……………………………………………………………………………………………11
3.1.2 Hofstede’s Cultural Dimensions………………………………………………………………………14
3.1.3 Hall’s Dimensions of culture …………………………………………………………………………..24
3.2 NEGOTIATION THEORY…………………………………………………………………………… 28
3.2.1 The Fundamentals of Negotiation …………………………………………………………………..29
3.2.2 Distributive vs. Integrative Strategies………………………………………………………………30
3.2.3 The influence of cultural values on negotiation………………………………………………….31
3.2.4 Negotiation Style …………………………………………………………………………………………32
4. COMPARISON OF DENMARK AND JAPAN…………………………. 37
4.1 CULTURAL VALUES ……………………………………………………………………………….. 38
4.2 NEGOTIATION STYLE……………………………………………………………………………… 39
5. EMPIRICAL RESULTS…………………………………………………………. 40
5.1 THE INTERVIEW…………………………………………………………………………………… 40
5.2 COMMUNICATION ……………………………………………………………………………….. 41
5.3 RELATIONSHIP ……………………………………………………………………………………. 42

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5.4 MEETINGS ………………………………………………………………………………………… 42
5.5 DECISION MAKING ……………………………………………………………………………….. 43
5.6 INFORMATION SHARING…………………………………………………………………………. 43
6. CONCLUSION …………………………………………………………………… 44
6.1 LIMITATIONS ……………………………………………………………………………………… 46
6.2 REFLECTION ………………………………………………………………………………………. 47
6.3 IDEAS FOR FUTURE STUDY ……………………………………………………………………….. 47
7. REFERENCES………………………………………………………………48
8. APPENDIX …………………………………………………………………50

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1.Introduction
A key priority of Denmark, as a member of the European Union, is to open up for more business
opportunities outside Europe in the following years. Japan is, as the third largest economy and
EU’s second largest trading partner, a very important market for Denmark and the rest of Europe
(European Commission, 2013). As one of a few European countries, Denmark has a significant
trade surplus with Japan (https://monkessays.com/write-my-essay/statistikbanken.dk, 2016). While Japan is one of the largest
economies, they are only the 9th largest export market for Denmark, accounting for 2.5% of the
total Danish export. Moreover there are less than 100 Danish companies established in Japan as of
2013 (https://monkessays.com/write-my-essay/japan.um.dk, 2016). Due to the financial crisis in 2008, both economies
experienced several years with a low or even negative economical growth. The import and export
between the countries has in recent years begun to slowly increase again, after the dramatic
decrease following the financial crisis in 2008. However, the trade between the nations may see a
significant increase, as the negotiations for a free trade agreement between EU and Japan opened
up in 2012, while officially starting in the spring of 2013 (https://monkessays.com/write-my-essay/um.dk, 2012). While no
agreement has yet been made, both sides agree on quickly finalizing the scopes of the free trade
agreement. According to the ministry of foreign affairs of Denmark (https://monkessays.com/write-my-essay/um.dk, 2012), the
potential free trade agreement may lead to an increase of up to 29 billion Euros in annual export
from Europe to Japan. With the possibility of a significant increase in business relations between
Danish and Japanese companies within the following years, followed by the upcoming free trade
agreement between EU and Japan, both countries will encounter difficulties when negotiating
with one another.
Although the finalizing of a free trade agreement may cause a significant increase in business
relations, culture still play a very critical role in the environmental context of international
negotiation (Salacuse, 1988 in Lewicki et al., 2010, p. 445). It is very likely for companies to
encounter cultural differences when dealing with foreign cultures. Knowing how to deal with the
cultural differences will likely be essential in negotiations between companies of different culture.
Knowing how to deal with them may imply the difference between success and failure in doing
business at all with foreign companies. This thesis aims to look into the cultural differences
between Denmark and Japan, in order to gain an insight and understanding of how it may
influence negotiations between the two nations.

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1.1 Problem Statement
There are many factors to take into consideration in negotiations between companies of different
nationalities. Of the different environmental contextual factors in negotiations between Danish
and Japanese companies, culture appears to have the greatest influence (Lewicki et al., 2010).
Culture affects not only the communication and behavior of negotiators, but also the entire
process of the negotiation. This thesis offers an insight into this, with the purpose to answer the
following question:
How does culture affect business negotiations between Danish and Japanese companies?
1.2 Structure of the report
The first section of the thesis consists of the methodological framework, including the design and
approach to the research. Moreover, the collection and techniques used to analyze is described in
the methodological framework. In the second section of the thesis the theoretical framework is
established. It consists of the definitions of culture and negotiation. Following the definitions is the
theories and concepts used to portray and analyze the country specific culture and negotiation
style. By using the methodological framework as guideline for the process of the empirical
research, along with the concepts constructed in the theoretical framework, an empirical study
was conducted. The findings of the empirical research can be found in the third section of the
thesis, the empirical results. Lastly, the results will be presented and discussed.
1.3 Delimitation
As previously stated, international negotiations are influenced by numerous environmental and
immediate context factors. Of these, only the influence of the cultural factor is analyzed in this
thesis. While culture vary on a group or individual level, this thesis work with a simplified approach

to culture, only looking at culture on a national scale, while disregarding any potential sub-
cultures.

The process and strategies of a negotiation vary depending on the situation for the negotiation.
This thesis will not look into the influence of culture in specific types of negotiation, such as
negotiations within the company or in cases of merger & acquisitions. Instead negotiation theory
will be simplified to the fundamental and general definitions of negotiation.

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Since the empirical study consist of a single unique case on the personal experience of only a
single individual, the results is difficult to generalize to a broader perspective of cross-cultural
negotiation. Rather than seeking to generalize, this thesis aim to provide a deeper understanding
of how the national culture of Denmark and Japan influence the interaction in a negotiation.

2. Methodological Framework
Prior to looking into the theories and concepts of culture and negotiation, a methodological
framework needs to be established to define the approach to it. Eriksson & Kovalainen (2008)
name methodology as the philosophy of methods and describe it as how a given issue or problem
can be studied. Methodology can be defined broadly as quantitative or qualitative methodologies
(Silverman, 2005 in Eriksson & Kovalainen, 2008).
2.1 Research Design
The following paragraphs will present the research design of the study. It will describe the
research approach and methods chosen for execute the study before giving an insight into the
broad perspective of the topic. To narrow the perspective down to a more precise guidance for
the approach to solve the problem statement this thesis will answer; a few research questions
have been created. The last paragraphs will outline the data collection, as well as, the techniques
used to analyze the data collected.
2.2 Research Approach
Depending on the research questions and the resources available, certain approaches can be used
to study cultural trends. Due to the very subjective nature of culture certain approaches to culture
can be very resource heavy. Quantitative research approaches, such as those conducted by
Hofstede (2010) to collect data to create the model for cultural dimensions, can require a lot of
data collected from many different sources over time. According to Silverman (2001 in Eriksson &
Kovalainen, 2008) quantitative research cannot deal with the social and cultural construction of its
own ‘variables’”. Qualitative researches on the other hand approach to understand the reality of
social construction as produced and interpreted through cultural meanings (Eriksson &
Kovalainen, 2008). Based on the exploratory problem statement, with the aim of understanding

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the influence of the socially contracted culture in a business setting, a qualitative research
approach has been chosen for this report, as it is found to be the most suitable to answer the
problem statement. According to Tesch (1990 in Eriksson & Kovalainen, 2008) there are four
categories of qualitative research: Those with interest in language, in discovery of regularities, in
discerning meaning and in reflection. As the thesis aim for a deeper understanding a case study
research, from Tesch’s discerning meaning category, will be used.
2.3 Case Study Research
Yin (2002 in Eriksson & Kovalainen, 2008) define case study research as:
“an empirical inquiry that investigates a contemporary phenomenon within its real-life context,
when boundaries between the phenomenon and the context are not clear evident and in which
multiple sources of evidence are used”.
The approach of the case study research can vary depending on the purpose of the research. Most
researchers distinguish case study research as either intensive in single-case studies, or extensive
in multiple-case studies. In an extensive case study research it is possible to test several cases and
test them across each other. By replicating cases certain common patterns can be mapped to
construct generalizable empirical results. On the other hand an intensive case study is able to
create a deeper understanding of a single unique case (Yin, 2002 in Eriksson & Kovalainen, 2008).
Due to the limitations of the thesis, an intensive single-case study was prepared, rather than a
multiple-case study. This allow me to create a more in-depth understanding of the influence of
culture.
2.4 Research Topic
In the broad perspective the research topic for the thesis is cross-cultural business negotiations.
Companies based of the two countries, Denmark and Japan, have been chosen to make a
narrower topic, thus making the research topic: cross-culture business negotiations between
Danish and Japanese companies. According to Eriksson & Kovalainen (2008) “researchability” is
one of the key principles when choosing a research topic. Even if not all research questions are
empirical by nature, it should be possible to make an empirical study based on the research topic.
Eriksson & Kovalainen (2008) point out that one can look into the amount of secondary material to
discover if the research topic is researchable or not.

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The first of the two topics, culture, is one of the most researched topics within social science.
Hundreds of different definitions and models of culture have been created by various authors to
explain the phenomenon (Nardon & Steers, 2009). Among the most famous researchers in the
field of cultural studies are Hofstede (2010) and Hall (1990). The theories and models from Hall
and Hofstede are used to explore the Danish and Japanese culture in the theoretical section of the
thesis. The models created by these authors differentiate cultures in simplistic dimensions, and
can be used as tools to compare national cultures with each other.

The second topic, negotiation theory, is also a well explored topic, with a vast amount of pre-
existing literature. For this research topic, the fundamental negotiation theories, based on the

authors Lewicki et al. (2010) and Cohen (1980), have been used to establish the theoretical
framework. The country based negotiation style has been analyzed mainly using academic articles
from Graham et al. (2009) and Katz (2007), who have been studying international negotiation
styles across more than 50 countries worldwide.
2.5 Research Questions
The problem statement defines the broad perspective of what the thesis aim to give an answer to.
In order to make a clearer and more precise direction of the research, two research questions
have been defined:
 How does culture influence the negotiation style of Danish and Japanese companies?
 How do Danes and Japanese experience business negotiation with one another?
Although this thesis seeks to gain a better understanding for Danes doing business in Japan, it will
do so by looking at the cultural influence of negotiations from both the Danish and Japanese
perspective.
2.6 Data Collection
The data collection consists of both primary and secondary data. The primary data is based on a
semi-structured interview with the current project manager at ECCO, Wesley Hind. The interview
was conducted in English to avoid any misinterpretations is the translation of the interview. An
interview is a great source to collect practical information on the personal experience from a
reliable source. An interview guide was used for the interview, which consisted of open-ended

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questions, mostly based on the personal experience of the interviewee. The informal approach to
the interview, with casual conversation prior to and after the interview, was found effective in
making a more relaxed and open conversation about the personal experience and point of view of
the interviewee.
The secondary data was gathered from numerous sources. Academic articles and books was used
to collect the data needed to establish the theory and concepts used for the methodological and
theoretical framework, while data from academic articles, online databases and websites was
used to collect data to analyze the Denmark and Japan.
2.7 Data Analysis
Yin (2002 in Eriksson & Kovalainen, 2008) distinguishes between two main strategies to analyze a
case study. The first strategy is based on pre-formulated theoretical propositions within the
research topic. The second strategy is based on the development of a case description, which then
form the basis for the research questions and framework used to conduct the study. The second
strategy indicates a more inductive-orientated strategy of case material analysis, based on direct
interpretation of the research material.
The first strategy has been chosen, meaning that I will reply on theoretical positions to gather
literature on the theoretical concepts for the research topic. These concepts will then be held up
against the empirical findings to find any relations or contrasts between them.
Whereas the strategy is the grand design of how to reach the long-term goal, specific tactics for
how to execute the strategy needs to be established. There are many different techniques to
analyze the data collection, of which some is specifically related to a case study research (Eriksson
& Kovalainen, 2008).
Of the five different analytic techniques used in case study research, four can be applied to a
single case study (Yin, 2002 in Eriksson & Kovalainen, 2008). The first technique, pattern

matching, involves finding and comparing patterns between the empirical data and the pre-
existing propositions. The second technique, explanation building, includes a iterative search

process for casual links in the empirical data. The third option, time-series analysis, traces events
over time. The last model, logic models, focuses on the repeated cause-effect pattern in a complex

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chain of events. Due to a limitation in time it was not possible to use the time-series analysis and
logic model techniques.
Of the available techniques to analyze the case study research, a pattern matching analysis
technique was chosen. By using the pattern matching technique, patterns from the empirical data
will be found and compared to the pre-developed propositions based on existing theory.

3. Theoretical Framework

3.1 Culture
In order to understand how the national culture affects business negotiations between Danish and
Japanese firms, a theoretical framework has to be established. This is to first understand the
concept of culture, in addition to the country specific culture of both Denmark and Japan.
Understanding the cultural aspects of both countries, a comparison between them will be
constructed.
3.1.1 Culture Defined
Before going further into the analysis of the national cultures, the concept of culture will be
defined.
Culture is a very complex concept, and there is not any one certain definition of it. Based on
critical reviewed concepts and definitions of culture American anthropologists, Kroeber and
Kluckhohn (1952, in Spencer-Oatey & Franklin, 2009), compiled a list of more than 164 different
definitions of it in 1952. Based on the study of the various definitions they came up with a
comprehensive definition of culture:
“Culture consists of patterns, explicit and implicit, of and for behavior acquired and transmitted by
symbols, constituting the distinctive achievements of human groups, including their embodiment in
artifacts; the essential core of culture consists of traditional (i.e. historically derived and selected)
ideas and especially their attached values; culture system may, on the one hand, be considered as

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products of actions, on the other, as conditioning elements of future action”(Kroeber & Kluckhohn,
1952 in Spencer-Oatey & Franklin, 2009).
Among some of the most noteworthy and recognized definitions of culture is Matsumoto (1996),
who defined culture as “the set of attitudes, values, beliefs, and behaviors shared by a group of
people, but different for each individual, communicated from one generation to the next”
(Spencer-Oatey & Franklin, 2009). Culture is, according to Matsumoto’s (1996, in Spencer-Oatey &
Franklin, 2009) definition, different on an individual basis, while shared between the members of a
group. For the purpose of this thesis, the two countries will each be defined as a single group, of
which the members share a common set of attributes, values and behavior. This is also
emphasized with Thomas’ (1996, in Spencer-Oatey & Franklin, 2009) definition of culture as a
universal orientation system typical of a society. Moreover Thomas’ (1996, in Spencer-Oatey &
Franklin, 2009, p.15) speaks of the influence culture has on the members of the society, which can
be seen in the perception and acting of its members.
In Hostede’s (1997) book, the software of the mind, he states “culture is the collective
programming of the mind which distinguishes the members of the group or category of people
from another”, meaning that culture was learned and partly shared with individuals who live or
lived within the same social environment. This belief is shared with Hall (1959), who adds that
culture is not only learned, but also reflects the way people learn. Culture is “learned and shared
behavior” (Hall, 1959).Hofstede (1997) argues that it is the universal human nature that is
inherited, while the individual personality is partially inherited and partially learned. Below is
Hofstede’s (1997) model of the three levels of uniqueness in human mental programming:

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The culture of two groups is not similar, and according to Hofstede (1997) the cultural differences
manifest themselves in different levels of depth. The different levels of depth are illustrated in
Hofstede’s (1997) onion diagram below:

Figure 1: Three levels of uniqueness in human mental programming

Figure 2: Onion Diagram

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In the onion diagram, Hofstede (1997) distinguish between practices and values. At the surface of
the culture are the practices, which are the manifestations visible to the outside. The practices
consist of the three levels: symbols, heroes and rituals. At the first level, visible to the external
surroundings, is the symbols special to the culture; the words, gestures or objects that carry a
particular meaning for those who share the same culture. Heroes are the people who serve as
models of behavior, because of their possessed highly valued characteristics, while rituals are
collective activities considered socially essential to the culture (Hofstede, 1997). At the core of
culture are values. They remain unconscious, as they are learned early in our lives, and cannot be
observed from the outside (Hofstede, 1997). Since values cannot be observed, one needs to ask
questions in order to gain a deeper insight into the values of a culture.
According to Nardon and Steers (2009) six models are utilized in organizational research. These
models can be used as a tool to highlight various aspects of societal beliefs, norms and values in
national cultures. The six models Nardon and Steers (2009) are created and named after the
researchers: Hofstede, Kluckhohn & Strodtbeck, Hall, Trompenaars, Schwartz and House.
In order to understand the national culture of Denmark and Japan, I will use the models
mentioned by Nardon and Steers (2009), that is found the most relevant to highlight the elements
of the Danish and Japanese culture which are likely to have an influence in negotiations between
Denmark and Japan. For this purpose Hofstede’s model will be used, as the six dimensions show
various aspects of cultural values that may affect negotiation. Most of Hall’s cultural dimensions
model will also be used, as the model Help in highlighting differences in communication and the
approach to tasks. While Kluckhohn & Strodtbeck’s (Nardon and Steers, 2009) model for cultural
dimensions could also have been used, most of the dimensions included in the model are found to
not indicate cultural values that affect negotiations, while those who do is already well presented
by Hofstede’s and Hall’s models.
3.1.2 Hofstede’s Cultural Dimensions
Based on a study conducted on employee value scores collected by IBM between 1967 and 1973
from more than 70 countries, Hofstede (2010) created a model on national culture dimensions.
The original model contained only four dimensions: Power Distance, Individualism, Masculinity
and Uncertainty Avoidance. As the studies of the national continued over the years, an additional
two dimensions were added. The two dimensions added was Long Term Orientation and

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Indulgence, which serve to explain the gap in national culture not explained by the original
dimensions in Hofstede’s (2010) model for national culture.
The study of how values in the workplace are influenced by culture, was one of the most
comprehensive at the time, and has since then laid ground for subsequent studies in the field
(Hofstede, 2010).
The model score the organizational culture of each country based on a scale from zero to hundred
in each of the six dimensions. Each dimension represents two contrasting ways of behavior in the
culture, and can be used as a tool to compare cultures, while being meaningless on its own. The
specific score in any of the dimensions do not imply a certain type in behavior, but rather an
indication of where the country is places between the two contrasting extremes. Below is the
Hofstede’s model for national culture illustrated, containing a comparison of Denmark and Japan
in each of the six cultural dimensions. The scores are based on the results collected by Minkov and
Hofstede (2010):

Using the model of Denmark in comparison with Japan, each dimension will be described,
following a country specific analysis and comparison the two.
Figure 3: Hofstede’s Cultural Dimensions

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3.1.2.1 Power Distance (PDI)
The power distance dimension expresses the attitude in the culture towards inequalities of
individuals. It is defined as the extent to which the less powerful members of organizations within
a country expect and accept an inequality in power distribution (Hofstede, 2010). In the power
dimension, a low score indicates an organizational culture in which people strive to equalize the
distribution of power in the notion of a more flat organizational structure. A high score in PDI
indicates an organizational culture where a hierarchical order is accepted, with an uneven
distribution of power across the hierarchy.
With a score of 18, Denmark is considered to be at the low end of the spectrum, with the lowest
recorded power dimensions score in Europe. “Danes do not lead, they coach and employee
autonomy is required” (Hofstede, 2010). With the highest employee autonomy in EU, Danish
employees have the ability to control their work situation to a larger degree (Hofstede, 2010). The
atmosphere at the workplace is very informal with a direct and involving communication style
(Katz, 2007).
Japan is known for their collective and slow decision-making process, along with their high social
hierarchy in most aspects of the society (Graham & Requejo, 2009). While Japan with a score of 46
has a high power distance compared to most European countries, it scores below most other
Asian countries (Hofstede, 2010). The power distance seems great in Japan, with a high social
hierarchy. The reasoning for Japan not to score higher in the dimension is due to the distribution
of power; there is no one top manager making all the decisions. Instead a consensus agreement is
made by incorporating all members of the team in the decision making (Hofstede, 2010).
While the difference in power dimension seems rather small in comparison to some of the other
dimensions, it is no less significant, as it may lead to certain problems in a negotiation between
Danish and Japanese negotiators. From a Danish perspective there is little to no hierarchy in the
workplace, meaning that the negotiator is able make a decision on the spot, without the need to
go through several hierarchical layers to approve it. Pushing for the Japanese to make a decision
on the spot may make them feel rushed and uncomfortable, as they have to go through the
hierarchy before any decisions is made. Rushing the negotiation may offend the Japanese side,

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weakening the relationship between the parties by ruining the harmony (Graham & Requejo,
2009).
3.1.2.2 Individualism vs. Collectivism (IDV)
Countries with a high score in the individualism dimension is considered a individualistic society,
and can be defined as a social framework in which individuals are expected to take care of only
themselves and their family. In the opposite end of the spectrum is collectivism, which can be
defined as a social framework in which individuals are expected to take care of their relatives and
members of the particular groups the person identifies him-/herself with (Hofstede, 2010). The
differences between the two are whether individuals acts and behave on behalf of themselves or
on the group they identify themselves to be included in.
With a score of 74 Denmark is ranked as an individualist society. In this social framework
individuals are expected to take care of themselves and their near family (Hofstede, 2010). Danes
do not small talk a lot, but use a very direct form of communication, going straight to the point
(Katz, 2007). This style of communication means that you do not need to create a relationship with
a Dane prior to doing business, but can do business right away by simply calling or arranging a
meeting, making it relatively easy to conduct business with Danes (Katz, 2007). In Denmark there
is no significant loyalty towards the company, from the perspective of an employee, which means
that employees switch more often between companies to forward their career, rather than
staying in a company for a lifetime (https://monkessays.com/write-my-essay/jobindsats.dk, 2016). Furthermore, companies
prefer to hire employees with experience, rather than hiring an inexperienced person to train
them internally.
In the individualism dimension Japan is positioned as a collectivistic society, though it is close to
the middle with a score of 46, indicating a society with characteristics of both an individualistic and
collectivistic society. In Japan the harmony of the group is above the opinions and expressions of
the individuals (Hostede, 2010). Japanese people avoid actions that may lead to one losing status
or respect of the groups they identify with, also known as the concept of losing face. While this is a
strong indication of a collectivistic society, Japan is not nearly as collectivistic as their Asian
neighbors South Korea and China (Hofstede, 2010). Hofstede (2010) argues that Japan is less
collectivistic due to the lack of extended family systems, which forms a base of collectivistic

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societies. Another example of a more individualistic approach to a collectivistic society, is the
Japanese individuals own choice of an extreme loyalty towards the company they are employed
by. When they are a part of a group, they work together as a group, and are very loyal to it. It has
been common in the past decades for Japanese companies to hire almost entirely newly
graduated college students in order to train them internally and employ them for lifetime
(Pudelko, 2009). The traditional Japanese-style management use a seniority based system, in
which employees raise in responsibility and wage in connection to their age and time spent within
the company (Pudelko, 2009). This indicates companies to be managed in a very collectivistic
sense, as they invest in and protect the employees to a great extend, rather than lying off
employees to save costs in bad times (Pudelko, 2009).
In a negotiation with a Japanese company, one should be very careful to not make them lose face.
The Japanese notion of losing face is similar to the Chinese, which can cause them to not make an
agreement and instead do business with the competitor (Graham & Requejo, 2009). For the Danes
to avoid making the Japanese party lose face may result in an agreement, rather than a sudden
withdrawal from the Japanese side. In order to save the harmony of the relationship, the Japanese
party will avoid making you lose face, and in doing so, rephrase or avoid saying anything that may
cause you to lose face. A Danish negotiator should be very cautious of this, as it may cause a
misunderstanding of what the Japanese are able to complete, rather than what they say they can
do to save face. Another important thing to take into consideration when dealing with Japanese is
to emphasize speaking towards the opposing party as a collective unit rather than to focus on an
individual person in power.
3.1.2.3 Masculinity vs. Femininity (MAS)
Hofstede’s (2010) masculinity dimension expresses the characteristics of a masculine society and
the contrasting feminine society. At the higher end of the spectrum is the masculine society,
characterized by a large degree of competition between both individuals, as well as between
groups (Hofstede, 2010). In a masculine society, people often measure their success in material
values (Hofstede, 2010). In the feminine society quality of life is the key indicator for the success
achieved. People in a feminine society believe in cooperation, modesty and caring for the weak
(Hofstede, 2010).

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With a score of 16, Denmark rank as a feminine society. A manager in the Danish society strives to
motivate the employees through a supportive management style, rather than pushing for
competition between them. Solidarity, equality and quality of the working life are valued over
being the best in the field. Compromises or trade-offs are often used to solve conflicts and
consensus is reached by long discussions between the involved parties (Hofstede, 2010).
Japan ranks as one of the most masculine societies of all the countries studied, with a 95 score in
the masculinity dimension. A masculine society indicates a highly competitive environment. While
the Japanese society is incredibly competitive, it is not on an individual basis, as seen in most other
masculine societies, but rather on a group basis (Hofstede, 2010). The Japanese concept ganbaru,
meaning to do one’s best or never give up, is an achievement orientation that can be seen almost
everywhere in Japan (Haghirian, 2010). “In Japanese society it is considered a weakness to give up
a plan or look for an easier option” (Haghirian, 2010). As described in the IDV dimension, Japan
possesses characteristics of both an individualistic and collectivistic society, with a strong group
association and a sense of losing face towards their associated groups. Employees fight to win,
not for themselves, but for their team, company or any other group they identify themselves as a
part of. They have a strong drive for excellence and perfection in work, as well as in almost every
other aspect of their lives (Hofstede, 2010).
There lies a major difference between Denmark and Japan in the MAS dimension, with each of
them at the far end of the spectrum. On one hand, Denmark is a very feminine society with values
such as quality of life and equality, while Japan is the complete contrast as a masculine society,
with a very strong competitive drive (Hofstede, 2010). As discussed later in the fundamentals of
negotiation, it is important to know both what you want, and what the opponent want (Lewicki et
al., 2010). The drive to achieve success is different in Denmark than in Japan, and it is important to
look into this, rather than expecting the other party to have the save goals and drive. This is
especially important within a Danish company in Japan or the opposite, in which case the drive
and management style must be universal across all of the company. In negotiations between
Danish and Japanese representatives within the company, or between companies working
together, it is essential to agree and understand each other in order to come to an agreement for
the management style and what the drive for the company is.

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3.1.2.4 Uncertainty avoidance (UAI)
The dimension uncertainty avoidance is defined as the way a society deals with the uncertainty of
the future. A high score in this dimension indicates a society that try to avoid any uncertainty by
attempting to control the future (Hofstede, 2010). Societies with a low score in uncertainty
avoidance are less prone to desire control over the future, and do not feel threatened by unknown
situations. Instead these societies are more flexible and adjust to changes, rather than attempting
to control it (Hofstede, 2010).
Denmark has a low score of 23 in uncertainty avoidance. The future is in the Danish society seen
as unknown, with little desire to control it. Plans change overnight, and Danes are expected to be
flexible and adjust to the changes that happens as time pass. Instead of attempting to predict the
future, a strong effort is made in the exploration and development of new ideas; it is encouraged
to be curious and work to change the future through innovation, rather than hoping for the
environment to stay the same (Hofstede, 2010). Danes are taught to expect the unexpected, and
try to influence the future rather than trying to control it.
Japan scores 92 in uncertainty avoidance, ranking among the highest of the countries studied. Due
to the constant threat of natural disasters, such as earthquakes and tsunamis, Japan has always
had necessitate to prepare for any uncertain situation they may face (Hofstede, 2010). A high
preparation for uncertain situation goes way beyond emergency plans and the construction of
buildings into every other aspects of the Japanese society. There is a long history of traditions with
rituals and ceremonies, which all has a very detailed prescribed way of how people should behave,
what to wear, etc. At the organizational side of the society, a lot of time and effort is invested in
studies of all risk factors to consider, which all must be taken into account before any agreement is
made (Hofstede, 2010). Before meetings within a company, a manager or employee would often
have meetings with individuals, to discuss and address any issue that may rise during the original
meeting, to solve them prior to the meeting with the rest of the team. This is to avoid any
uncertainty doing the “real” meeting, and to avoid losing face. Moreover, it is considered too risky
to let one individual to make all the decisions, and the responsibility is instead shared for the
members of the group (Haghirian, 2010). The high uncertainty avoidance is also an essential factor
for the slow decision making process, as any risk and uncertainty must be taken into consideration
and addressed before a decision can be processed.

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Due to this significant difference in the uncertainty avoidance of the Danish and Japanese society,
some issues may occur if not taking into careful consideration and preparation prior to the
negotiation between the two parties. Where Danes are more flexible for any change and less
prone to control the future, Japanese has a high need to address any scenario that may cause
uncertain situations. One way for the Danes to address and solve this issue is to make a contingent
contract in the negotiation between the two parties. In a contingent contract the terms are based
on certain events or conditions. By making a contingent contract the two parties can address any
important uncertainty in the contract and reduce the risk for both parties through risk sharing. A
contingent contract help to carry out the Japanese need for control, as the contract serve to
protect against future change of plans.
3.1.2.5 Long-term vs. short-term orientation (LTO)
The long-term orientation dimension expresses the timeframe of the outlook on work, life and
relationship (Nardon & Steers, 2009). In long-term orientation societies people tend to be
persistent and plan far ahead with a sustained effort towards slow results. A very pragmatic
approach, with a strong emphasize on preparation for the future through education and a thrifty
approach towards consumption (Hofstede, 2010). It is a very family orientation society, with

mothers taking time off to take care of their children, and a norm to live together with ones in-
laws (Hofstede, 2010). In Short-term orientation societies traditions and social obligations is

highly valued. Resources is spent in the present, rather than invested for the long-term. Countries
with a short-term orientation often have a strong sense of nationalism and family pride (Hofstede,
2010).
According to Hofstede (2010), Denmark is a short-term orientated society with the low score of
35. The low score indicates a normative thinking with a belief of one right way to do things. The
time orientation is on the present and near-future. The short-term orientation can also be seen in
the time employees’ work in any given company, with an increasing job turnover in Denmark. In
2014 the job turnover was almost 750 thousand (https://monkessays.com/write-my-essay/jobindsats.dk, 2016). As a rather
short-term orientated society, the short-term growth is often more important than the long-term
survival. An example of this is stock listed companies in many fields of business that work towards
the annual report, rather than investing heavily in R&D for the long term survival.

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Japan is at the opposite end of the scale, ranking as the third most long-term orientated country of
the countries studied, with a score of 88 (Hofstede, 2010). The financial and non-financial
objectives for Japanese companies are to secure long-term survival, independence and growth
(Pudelko, 2009). Companies have long-term employment relations, with a large part of employees
working within the same company from graduation and until retirement (Pudelko, 2009). Japanese
companies invest heavily in the future with one of the highest R&D intensity among major
countries (SuZuki, 1997).
The significant difference in time orientation between the two nations could cause certain issues
in a business negotiation. An issue it may cause is the Danes desire for heavy investment into
short-term growth. It is that you have to spend money to earn money, and thus spending a lot of
money now to grow, which will benefit the company in the near-future. From a Japanese
perspective this would seem very frightening, as they work towards a long-term survival of the
company, saving money to reduce the risk of future economical instability. A negotiator should be
very careful about believing in one right way to do things. Sometimes it can be crucial to adapt to
the local ways of doing business in order to succeed. While Hofstede (2010) indicates Danes to
believe in one right way to do things, while Gertsen (2010) find the opposite to be true. Gertsen
(2010) describe how Danish companies exporting internationally are very proficient in adapting to
the local ways.
3.1.2.6 Indulgence vs. Restraints (IVR)
The indulgence dimension describe to which extend the society allow or suppress free gratification
of basic human drives related to the contrast of enjoying life and having fun or if it is being
regulated by means of strict social norms (Hofstede, 2010). A high score in the indulgence
dimension indicates an indulgent society that allow free gratification, while a low score indicate
the contrasting restraining society, in which gratification is suppressed.
Denmark is, with a score of 70, classified as an indulgent society. Some characteristics of an
indulgent society are a larger degree of happiness among the people in the soceity (Hofstede,
2010). This is also the case with Denmark, who ranks as the happiest country in the world
according to a rapport made by the U.N. (Helliwell et al., 2016). People in Denmark do in general
have a positive attitude towards life. Moreover they are more optimistic and have an extroverted

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personality, but lack in moral discipline (Hofstede, 2010). As an indulgent society, Danes view
leisure time as a positive thing, and believe they are in control of their personal life. Due to the
high desire of enjoying life and having fun, the consumption habits in Denmark are more
impulsive.
At a score of 42 Japan is considered a restraint society. As opposed to an indulgent society, Japan
has a lower percentage of happiness among the people (Hofstede, 2010). The result from
Hofstede (2010) of a somewhat less happy society, matches the result from the U.N. (Helliwell et
al., 2016), indicating that Japan is the 53th happiest country in the world. Thriftiness is seen as
important value due to the larger degree of pessimism and cynicism among people. Most
Japanese are greatly disciplined, and doesn’t put too much emphasize on leisure time. Japanese
employees at the lower end of the hierarchy is often expected to spend part of their leisure time
at the company or with the colleagues, leaving little time for themselves or their family (Haghirian,
2010). These elements is a cause of the strict social norms in the Japanese society, making people
feel that having fun and enjoying themselves is wrong (Hofstede, 2010).
The main points to take into consideration from the indulgence dimension are the Japanese
thriftiness in contrast to the Danish impulsiveness. In a negotiation the Japanese may come off as
cheap if they give a very low offer due to being thrifty. Danes have a belief in fairness, and expect
the initial offer to be no more than about 20 percent from the final agreement (Katz, 2007). They
may come to believe that the Japanese party lacks the knowledge to know the true value of the
negotiated objective, or that they are trying to take advantages of the Danes by making an
incredible low offer. Should the Danes attempt to make an impulsive it may also cause issues in
dealing with the Japanese, who prefer to work things through in details (Hofstede, 2010).
3.1.2.7 A Critical view on Hofstede’s model
While Hofstede’s (2010) model for national culture is a great and simplistic tool to analyze and
compare the culture of countries, in addition to being one of the most recognized worldwide, it is
not without flaws.
Hofstede’s model scores each country in each of six dimensions. The scores for each country is
based on the average recorded score throughout the entire nation. The model can be applied to a
large part of the companies and organizations within the country, but does not describe the

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individuals that diverge from the average. When using the model, one must be aware that it does
not apply to every individual, but serve as a guideline to understand the national cultures, and the
difference between them. Moreover, a certain score is not equal a certain behavior. Two countries
with the same scores may vary in culture, and should not mistakenly be counted as the exact same
culture, but rather the same cultural tendency.
Another issue is the accuracy of the data. The first data from 70 countries was collected back in
the 1970’s, and while new data and analysis is conducting in each country to update the
information, some data may be outdated.
The data for the analysis has all been collected through questionnaires, which as the only source
for data has limitation. Individuals may answer the same question differently depending on the
culture and context in which it was asked. For an example, in a group-oriented culture an
individual may answer the questions as if they were answering on behalf of the group they belong
to, rather than an answer based on their individual standpoint, which you would receive in more
individualistic societies.
Hofstede’s model for cultural dimensions is a great tool to explain the culture of a nation, but is on
its own too simplistic to give a well-grounded comprehensive visualization of the culture.
However, using the model in combination with other of the in Nardon & Steers (2009) mentioned
models to explain the various aspects of culture, and how they differ from each other.
3.1.3 Hall’s Dimensions of culture
Based on ethnographic researches across numerous countries, Edward T. Hall proposed a model
to enlighten how cultures vary in interpersonal communication, on top of the variations in the
view on personal space and sense of time (Nardon and Steers, 2009). The results of the study are
summarized in Hall model, consisting of the cultural dimensions: Context, Space and Time. Of the
three dimensions only context and time will be discussed, as the dimension for space is
determined to be irrelevant for the purpose of this thesis.
3.1.3.1 Context
Hall (1990) defines context as “the information that surrounds an event; it is inextricably bound up
with the meaning of the event”. In the dimension of context Hall (1990) distinguish between high

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and low context countries. The context of a country is based on the extent to which the context of
a message is important to the message itself.
In high context countries, a lot of the information in communication is conveyed indirectly through
the context of the message. According to Hall (1990), information in these high context countries
is conveyed through common experience, based on shared history and traditions, which change
very little over time. Instead of sharing all information through the usage of verbal
communication, other sources of communication, such as gestures, use of space and even silence,
is used to convey information between individuals or groups. Without knowing and understanding
the context it can become very difficult to communicate in this society, as one without a shared
background or context may not understand the meaning of the context in which the information is
shared.
In countries with a low context the communication is very direct and straight forward. The
message itself carries its meaning, and does not rely on the context in which the message is
expressed. As less common experience is shared, one cannot efficiently provide information
through elements such as status, friends or associates, but rely almost entirely on verbal and
written communication as their main source of information (Hall, 1990). Everything needs to be
stated in a low context society.

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Below is a figure of Hall’s high to low context continuum, showing the position of some of the
countries studied:

As seen in the figure illustrated above, Denmark is positioned as a low context country, together
with the rest of Scandinavia among other Western countries, while Japan is positioned at the very
top as the country with the highest context of those studied by Hall (1990). In the dimension of
context, Denmark and Japan is at the very opposite end of the spectrum. The major difference in
context between the countries may pose certain problems in a negotiation between individuals
from each country. For instance, Danes may be confused by the lack of information provided
directly, feeling that Japanese are hiding something, or simply don’t understand their message.
This could occur if the Danes are not able to understand the context or intentions of the Japanese,
as they may not be able to read between the lines, due to the lack of common experience shared
with Japanese people. An example of this is a Japanese person saying “maybe”. To a Japanese it
means “no” in a less direct manner, while it to a Dane means that they are uncertain and either
need more information or in other ways convinced to turn the answer to a “yes” (Haghirian, 2010)
From the Japanese point of view the excess of information provided by the Danes may seem
insulting and make them feel talked down to, as if they did not know or understand the given
context. In a negotiation with Japanese people, Danes should spend a lot of time to prepare the
Figure 4: Hall’s High to Low Context continuum

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way they communicate, as a wrong gesture, use of silence, or any other channel of indirect
message, may cause the failure in making a deal before the negotiation has even started. It is
important that they either have a Japanese person to help them understand the context, or have
the experience or training in doing so themselves.
While the difference in context between Japan and Denmark is the very opposite of each other,
Danes, as a rather small country, is quite good at adapting to the local conditions of a foreign
nation.On the topic of Danish born global SME’s Gertsen (2010) says that “Attitudes towards
adaptation to the local context are linked to the type of commitment …. Firms that are mainly
exporting generally accept local conditions and to try to fit in as much as possible”. As the quote
state, Danish exporting firms are fairly good at adapting to the local conditions, while larger firms
often demand to do business on their terms, though they tend to often use a local agent to
manage certain markets.
3.1.3.2 Monochronic vs. Polychronic time
In the dimension of time Hall (1966) portrays two contrasting ways of handling time; monochronic
and polychronic. It is an indication to which extend people in the given culture approach one or
more task at any given time (Nardon & Steers, 2009).
People in a culture with a monochronic time tend to give individual goals a sequential attention,
scheduling one thing at a time with a clear separation of work and personal life (Nardon & Steers,
2009). Monochrome people are characterized as having low-involvement and to become
disoriented when dealing with too many activities at once (Hall, 1966). In a culture with a
polychronic time, people tend to keep several activities going at once, meaning that attention is
divided to several goals simultaneously (Nardon & Steers, 2009). Polychrome people often tend to
see the order in which things occur as not important (Hall, 1966). There is no clear separation of
work and personal life, but rather integration (Nardon & Steers, 2009). This may cause polychrome
people to work in their leisure time, and to take personal calls or in other ways take actions
related to the personal life during office hours.
According to Nardon & Steers (2009), Denmark has, along with the rest of Scandinavia, a
monochronic time. One thing is scheduled at a time, with the time being very important. A busy
Dane will have a plan for where to be and what to do in a certain time slot, without the possibility

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of scheduling other activities in the same time period. Being even just a few minutes late is
considered rude for a Dane, as it may delay their plans for the entire day, or force them to cut the
delay of somewhere else, such as their leisure time (Katz, 2007). It is a very organized approach to
the management of time.
As many other relationship orientated cultures, Japan is considered having a polychronic time.
There is a well-built integration of work and personal life, with Japanese employees spending
leisure time on work or with colleagues (Haghirian, 2010). Furthermore, a lot of the working time
is invested into building an interpersonal relationship with those they do or consider to do
business with (Hofstede, 2010). In negotiations they do not make an agreement on one objective
at a time, but consider it open until a final agreement has been made for all objectives included in
the negotiation.
In negotiations between Danes and Japanese, the Danes may feel stuck, as if they negotiation
does not proceed forward, since the Japanese will go back and forth between the objectives, with
nothing settled during the first couple of meetings. The issue is impatience, as once everything has
been covered, the negotiation process rather quickly. Another issue is going back and forth
between objectives. The Japanese may offend the Danes, when they suddenly move back to an
objective already discussed, which from a Danish perspective would be considered settled when
moving on to the next topic, unless otherwise agreed.

3.2 Negotiation Theory
In order to discuss negotiations between Danish and Japanese companies and how culture
influences it, one needs to first understand the fundamentals of negotiation theory. It is important
to know the theoretical framework for negotiation, as well as, the steps in the process of how to
negotiate. Some of the most recognized strategies in negotiation theory will be outlined and
discussed in the context of intercultural negotiations between Danish and Japanese companies.
Using the established theoretical framework of negotiation, the Danish and Japanese negotiation
style will be presented in the subsequent section.

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3.2.1 The Fundamentals of Negotiation
Negotiation is “a form of decision making in which two or more parties talks with one another in
an effort to resolve their opposing interests” (Pruitt, 1981 in Lewicki et al., 2010). Negotiations are
a part of everybody’s daily life. Without thinking of it or realizing it you are negotiating throughout
your day. Simple daily interactions with acquaintances or the clerk can be considered negotiations.
People believe that the price at a super market is nonnegotiable, which in many cases is not the
reality (https://monkessays.com/write-my-essay/wisebread.com, 2015). While it is overlooked in most aspects of the daily life,
it is a crucial part of doing business with companies of any size or nationality.
Before going into a negotiation one should make the necessary preparation ahead of it. As Lewicki
et al. (2010) express it “planning and preparation are the most important steps in negotiation”.
First of all, you need to understand your own goals and interests (Lewicki et al., 2010). Knowing,
but not understanding your goal makes it difficult to claim the value to achieve it, especially if it is
attempt solved in alternative ways, such as making trade-offs for mutual benefits. Information is a
great source of power and can gain a negotiator several advantages in a negotiation. The
advantages include the ability to analyze the other party’s offer to understand their interests and
the goals they wish to achieve (Lewicki et al., 2010). Cohen, H (1980) noted the importance of
information with the statement that “it would give you a big advantage if you could learn what the
other side really wants, their limit, and their deadline”. Because of this, it can be hard to gather the
information of the other side both prior and doing the negotiation. “…it is often common strategy
for one or both sides to conceal their true interests, needs, and priorities” (Cohen, 1980).
Whether the two parties work together or against each other, both parties enter the negotiation
with the purpose of making a deal. However, one should not attempt to make a deal if it leaves
you worse off than before. For that reason it is important to know your best alternative to a
negotiation agreement, also known as BATNA. Lewicki et al (2010) describe the alternatives if an
agreement is not reached, as one of the most important sources of power in a negotiation. The
BATNA gives a negotiator the ability to walk away from the negotiation, should the deal not be
better than the alternatives. By improving your BATNA you can improve the possible outcome of
the negotiation. Without a strong BATNA it may be very difficult to negotiate with someone who
has a good alternative to an agreement, as they may negotiate very aggressively, making you take
an unsatisfying deal, due to the lack of alternatives (Lewicki et al., 2010). While your BATNA is a

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source of power, it should never be revealed, as it turn the power of it to the opponent, allowing
him to make a matching or slightly better closing offer.
3.2.2 Distributive vs. Integrative Strategies
In business negotiations two strategies are mainly used: Integrative and distributive strategies.
A negotiator using a distributive strategy looks at the total value of the negotiation as fixed. There
is no way to expand the value of the negotiation, and the negotiation has a clear winner and a
loser, making it a win/lose situation (Lewicki et al., 2010). A negotiator using this strategy will view
one party’s gain is the loss of the other. In general they have a low concern for the outcome of the
other party, as they focus on “winning” the negotiation by claiming all the value for themselves.
Using a distributive strategy, one is to expect the other party to act in the same way and try to
“win” the negotiation, creating a reactive dAssessment towards any offers made by the other party
(Lewicki et al., 2010).
Tactics used in the distributive strategy includes alternating sympathetic with threatening
behavior. By making a large bluff with a threatened action they try to either force the other party
to chicken out and give them what they want, or making a non negotiable ultimatum (Lewicki et
al., 2010).
The distributive strategy is by Cohen (1980) brought up as the Sovjet style of negotiation, in which
the negotiator try to win at all costs. It is describes as a competitive style of negotiation used to
win in a win/lose negotiation, in which you do not expect a long lasting relationship that need to
be cared for.
Using the integrative negotiation strategy a negotiator attempts to make a joint problem solving,
benefiting both parties by creating a win/win situation. By not assuming a fixed pie, the integrative
strategy is used to expand the total value of the negotiation by inventing options for mutual gain.
A key principle for integrative negotiations is to separate the people from the problem and to use
objective criteria to solve conflicts (Lewicki et al., 2010). Trade-offs is made across various
elements in the negotiation to find differences in valuation between the two parties. A different
valuation between different objectives can be used to expand the total value and achieve a mutual
gain. Furthermore, rather than trying to “win” against the other party, both parties attempt to
create a bridging solution, for which the interest of both parties is met.

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The negotiation strategy is by Herb Cohen (1980) mentioned as a Negotiating for mutual
satisfaction style of negotiating, where all parties work together in a collaborative process to
create an outcome of acceptable gain for all parties.
There is no obvious best strategy for every negotiation situation, as both strategies has some
advantages and disadvantages. The best strategy can depend on the context of the negotiation.
Moreover, most negotiators are not using a complete version of either of these, but rather a
mixed version of the two strategies (Lewicki et al., 2010). Where the integrative strategy focus on
creating value and finding a mutual beneficial solution, the distributive strategy focus on claiming
value. To be an effective negotiator one need to both create and claim value (Lewicki et al., 2010).
Another important attribute to master is the ability to build trust and achieve commitment, which
according to Cohen, H (1980) are some of the most important activities in a collaborative style of
negotiation. This is especially the case when dealing with continuing relationships, trade partners,
or relationship focused societies. “In a continuing relationship, the more trust you place in others,
the more they will justify your faith” (Cohen, 1980). There are several types of ways to build trust
in negotiations. One of these is known as calculated trust, which is described by Lewicki et al.
(2010) as impersonal transactions with anticipated benefits that outweigh the anticipated costs of
the relationship. Trust does not necessary have to be based on anticipated positive outcome, but
can also be pulled from another entity. This is known as swift trust, and is based off a third party,
such as a common friend or business partner. Trust between two parties is a result of the history
between them. The most effective type of trust, though also the hardest to build, is genuine trust,
which is built on an exchange relationship with both parties meeting each other’s interest. Lewiki
et al. (2010) define this type of trust as identification-based trust based on “compatibility in values,
common goals and positive attachment to the other”.
3.2.3 The influence of cultural values on negotiation
Negotiation fluctuates from culture to culture and can be exceedingly complex cross two cultures
(Lewicki et al., 2010). Negotiation can, as a cause of the cultural values, diverge from the general
concepts in the very fundamentals of negotiation. “The fundamental definition of negotiation,
what is negotiable, and what occurs when we negotiate, can differ greatly across cultures” (Yook &
Albert, 1999 in Lewicki et al., 2010). Besides the fundamentals, cultural values have an influence in

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the process of the negotiation. It is the differences between achieving a profit by making the
opponent comfortable or uncomfortable. Countries with more long-term orientated goals are
more prone to use tactics that make the opponent comfortable, with the opposite being the case
for cultures valuing short-term orientated goals (Lewicki et al., 2010).
Brett (2001 in Lewicki et al., 2010) found a cultural influence to the strategies used in negotiations,
along with a different setting of priorities and interests. Whereas an integrative strategy is the
norm in some cultures, a distributive strategy is the norm in others. A correlation was found
between the most common strategy used, as well as, the size of the joint outcome of the
negotiation, and whether the country had an individualistic or collectivistic culture. Moreover, a
study found that communication was influenced, with a difference in the patterns of interactions
throughout the negotiations (Brett, 2001 in Lewicki et al., 2010).
A considerable difference in information sharing was found across cultures. In addition to the
choice of strategy used, a strong correlation was found between the certain cultural values and
how information was exchanged. Countries with a low-contextual culture are more likely to share
information about preferences and priorities directly. This allows them to draw similarities and
contrasts that can be used to invent better options. The opposite is the case in high context
countries, where information on preference was found to be sharing indirectly. A tactic used is to
communicate preferences and limitations by making multiple offers simultaneously (Lewicki et al.,
2010).
Other areas of negotiation influenced by the cultural values include conflict resolution. High
context countries were found to solve conflicts based on rules or by avoiding the existence of the
issues. Low context countries in contrast solved conflicts by using the knowledge gathered from
training or personal experience, which in a position of power included the usage of direct
confrontations (Lewicki et al., 2010).
3.2.4 Negotiation Style
Knowing the fundamentals of negotiation, in addition to some of the various important strategies
used in negotiations, an insight into the Danish and Japanese negotiation style is created with the
purpose of holding it up against the empirical results.

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3.2.4.1 Danish style of negotiation
According to Hofstede (2010), Denmark is positioned as an individualistic country. While Lituchy
(1997 in Lewicki et al., 2010) found individualistic societies to use the integrative strategy to a
lesser extent, Katz (2007) found Denmark to not follow this trend. “To the Danes, negotiating is
usually a joint problem-solving process … both own the responsibility to reach agreement.” (Katz,
2007). Danes has a very cooperative style of negotiation, with the belief of the win-win concept
and an expectation for the other parties to reciprocate (Katz, 2007). Disputes are solved by the
usage of logical reasoning and facts, with an open mind to make compromises in order to precede
the negotiation. The style is comparable to the integrative strategy described by Lewicki et al.
(2010), in which the negotiator work together with the other party for a joint problem-solving and
an agreement of mutual gain.
The tactics preferred by the Danes are very honest and straightforward, putting pressure on the
opponent by opening the negotiation with their best offer or by making final offers further in the
bargaining stage. The bargaining stage is usually rather brief in Denmark, with only little
movement from the anchoring offer to the final agreement (Katz, 2007). Opening with the great
offer close to the expected result or making a final offer is common practice to speed up the
negotiation process. Opening with an extreme offer is viewed as either a lack of knowledge or an
unfriendly act, as it does not reciprocating the expected respect and honesty. A desired and
effective tactic to reduce the bargaining stage in a negotiation with Danes is to open with a
written offer. The offer should include all the terms and conditions (Katz, 2007). While the initial
offer won’t be the final in most cases, it helps to clearly state the expectations and preferences of
the opposing party.
Danes prefer a monochronic style of work, pursuing actions and goals systematically one at a time.
In negotiations objectives is worked at sequentially, bargaining each item separately, as also
described by Hall (1966) as characteristics of a culture with a monochronic approach to time.
Relationships
In general Danes are more concerned about the interest of an opposing group, rather than the
individual desires. In Denmark, the establishment of a business relationship is not considered a
necessity prior to making the initial contact. A business relationship is only considered moderately

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important for the purpose of doing business (Katz, 2007). Upon conduction business with a Dane
for the first time, they may seem cautious, appear reserved with a slow procedure until trust is
established. When trust is established, the respected partner will receive a sense of loyalty.
Business relationships do not only exist between individuals, but also between groups, such as a
company (Katz, 2007). This means that a Danish negotiator will trust the individual representing a
trusted company, even if no business relationship is established between the specific individuals in
the negotiating, like in the case of a replaced or introduced negotiator in the negotiation between
the two parties. In the Danish culture, people are treated with an equal respect regardless of their
status or other assessment that may otherwise cause a preferential treatment. People are
respected primarily based on the individual accomplishments (Katz, 2007).
Communication
Danes have a very direct style of communication. They do not have any issue saying “no” or asking
for clarifications to a request or proposal. Moreover, they do not look for an indirect message
when communicating by mail or letter, due to the very straightforward style of communication
(Katz, 2007). Information is used as a tool to build trust. As most of the information is provided
verbally or in writing, body language is used sparingly, with only minor signs of dislike or approval.
While Danish is the official language, Denmark rank as the number 3 in ETS’ (https://www.ets.org
,2012) TOEFL test on English language proficiency for countries in which English in not the official
language. Danish businesspeople are expected to have high English language proficiency, making
any translation from English to the native language redundant. It is considered rude to interrupt
others in a conversation, and should even at a business meeting in a restaurant be kept at a quiet
level (Katz, 2007). When doing business emotions are not shown openly, and are together with
openly shared opinions and concerns, disliked in conversations (Katz, 2007).
Meetings
In Denmark it is required to schedule meetings in advance. Punctuality is expected and it is
considered rude to be late to a meeting (Katz, 2007). Moreover, Katz (2007) states it with the
quote: “It is viral to come well prepared as the Danes hate wasting time”. Introductions are made
with a firm handshake, with the highest ranking people introduced first, using their surname
unless introduced by or offered otherwise. Giving gifts at a meeting is very abnormal in Denmark,

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and may raise suspicion. During the initial meeting business cards is exchanged. It is considered as
an essential step in doing business (Katz, 2007). Business meeting can be very formal, and not
much small talk is done if any at all, even at a business lunch or dinner. Danes keep it straight to
the point, focusing on the discussing business. The meetings are usually rather short, with
decisions made during the meeting after an agreement is finalized, following the discussion of the
issues at hand. Verbal agreements are considered binding, but not final. Only a signed contract by
both parties is considered a binding agreement. Post agreement changes to the signed contract
are considered bad faith (Katz, 2007).
Decision making
In Denmark the decision is mostly rather fast, with the decision maker participating in the
negotiation, allowing them to make the decisions during the meeting. It is not required to check in
with the top executives, as they have the responsibility to meet in goals set by them. The
exception to this is deals of a size that require approval of the top management within the firm
(Katz, 2007).
3.2.4.2 Japanese style of negotiation
Based on a study of the various negotiation styles across cultures, Graham & Requejo (2009) found
that “Japanese approach to business negotiations is, by nature, best in incorporating tools of
creativity”. The tools of creativity mentioned by Graham & Requejo, in which ways to expand the
total value of the negotiation is explored, is very similar to the integrative negotiation strategy
described by Lewicki et al. (2010). Lituchy (1977 in Lewicki et al., 2010) also found this to be the
case, reporting that negotiators from Japan made integrative solutions more often than
negotiators from more individualistic societies.
Japanese have a polychronic style of work. In negotiations they will discuss and make trade-offs
across the various issues in the negotiation, and dealing with several or all at once, rather than
taking them one at a time. This means that during the negotiation, no agreement on a certain
object is settled until the final agreement is made, as they can jump back and forth between the
different objects throughout most of the negotiation (Graham & Requejo, 2009). This approach is
how they are able to be creative in a negotiation, as they can seek differences in valuation across
the objectives and make compromises or trade-offs to create mutual beneficial options. As the

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negotiation proceeds forward executives will be included in the meetings, and the questions start
to narrow into specific areas of the deal (Graham & Requejo, 2009).
Respect and relationships
Japan is considered to be a relationship-orientation culture, in which trust and connections is an
essential part of doing business (Graham & Requejo, 2009). Prior to doing business, a good
interpersonal relationship needs to be established through investing both time and money until
mutual trust is built (Graham & Requejo, 2009). There is no certain time limit for the non-task
sounding; it takes the time that is needed to establish a good relationship, even if it takes weeks or
months to do so (Graham & Requejo, 2009). Once the relationship is established, they are very
careful to not harm it by making you lose face. They believe this to occur if they gave a negative
answer, such as an error or correction in a statement. “Executives in many relationship-orientated
cultures want to maintain your face and interpersonal harmony … the negative would disrupt the
harmony established” (Graham & Requejo, 2009). Furthermore, they do not want to lose face
themselves, and will avoid any direct rejection to save face (Graham & Requejo, 2009).
Communication
While most people in the business world speak English, misunderstandings may occur in the
translation. In ETS’ (https://www.ets.org, 2012) TOEFL test for English language proficiency, Japan
rank below the worldwide average. In terms of listening skills they lie at the bottom third in
ranking. To avoid misunderstandings visual media and/ or a translation to the local language
should be used. This also include the business cards exchanged (Graham & Requejo, 2009). In
order to gather information, Japanese businesspeople ask many questions. Some questions may
be repeated several times, either due to a need for more information, or there is a conflicting
issue with the addressed objective. In some instances it can simply be used as a persuasive tactic
against the other negotiator (Graham & Requejo, 2009). During business meetings Japanese
negotiators will attempt to make more eye contact when dealing with foreigners, but avoid
showing any negative emotions. From the perspective of the foreigner, this may make them
appear without reactions throughout the negotiation. They will remain calm, control their
emotions and not raise their voice when they get angry. Doing so is believed to disturb the
longstanding interpersonal harmony of the relationship. The best way to get feedback from

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Japanese is often to use the intermediary used to contact and build the relationship in the first
place.
Meetings
The appropriate behavior during a meeting can vary from culture to culture. Graham & Requejo
(2009) wrote on possible behavior of a comfortable Japanese executive during a meeting:
“perhaps even the senior executive is listening while doing other things or listening with his eyes
shut”. Prior to specific proposals, time is invested in long descriptions of the context and
background of the proposal, along with detailed discussions to cover every aspect of the
objectives it include (Graham & Requejo, 2009). The exchange of business cards is essential at the
initial meeting, and small gifts should be gifted before leaving (Graham & Requejo, 2009).
Decision making
In Japan lower level executives settle the issues in the negotiation, while the top level executives
are brought in as the decision makers to sign the agreement. In some cases the higher level
executives are also brought into the meeting early on to show commitment and importance
(Graham & Requejo, 2009). While the top level executives may join the negotiation to sign the
agreement, they are not the ones to bargain with. The decisions is not made by a single individual,
but is made as a consensus agreement with the approval of every member of the team before a
deal can be signed by the executives. It is a management style based of the idea that “no person
alone cannot be cleverer than all members of a team combined” (Haghirian, 2010).

4. Comparison of Denmark and Japan
In order make a cross-cultural comparison of how two different cultures influence the negotiation
between them, one has to first understand the important norms and values that distinguish the
cultures from one another (Lewicki et al., 2010). Based on the norms and values discovered and
analyzed in the theoretical framework, as well as, of the style of negotiation for each of the two
cultures, a comparison of the two cultures can be created to understand how the negotiation is
influences by the cultural differences (Lewicki et al., 2010).

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4.1 Cultural values
The significant difference in almost all of Hofstede’s (2010) dimensional scores for Denmark and
Japan illustrate some of the many cultural differences between them. The Danish organizational
structure is quite flat, with few layers of hierarchy to go through, when one wants to reach
someone at the top management. The Japanese value a hierarchical organizational structure, with
a clear division of power between each layer. While the hierarchical structure in Japan means that
information goes through several layers before reaching the top management, it does not mean
that decisions are made by a single individual at the top, but rather as a collective team effort.
Danes value the “I” over the “we” and make the decisions in the same sense on their own, without
the need to ask everybody else for consensus. Decisions are made collectively in Japan, due to the
very risk aversive nature of the culture, with the opposite being true in the Danish culture. In
Denmark the unknown potential of future change are seen as opportunities for improvement,
whereas it in Japan is seen as a unnecessary risk if they cannot control the outcome. Due to the
very nature of reducing risk, Japanese people are thriftier and save money for bad times, while
Danes are more impulsive in consumption and save less.
Losing face is a concept that is not used in Denmark, but something that is very fundamental in
Japan. Japanese people will attempt to save both their own face, as well as try to avoid making
others lose face. Losing face will to a Japanese person mean losing respect and/or status of the
group, whereas Danes deal with respect and status on an individual level. With the chance of
losing face, a Japanese person will avoid saying “no” directly in a disagreement, but rather saying
“maybe” or otherwise indicate that they are not convinced and have to withdraw from the
meeting to discuss it in details. Danes on the other hand see no issue in stating a disagreement if
they cannot meet the asked requirements or find the offer unsatisfying. Instead they will likely
directly decline it with a “no” or make a counteroffer. This is due to the very high contextual
culture in Japan, for which communication is very indirect, with most of the information collected
and communicated through the context. Denmark is the complete contrast to Japan in context,
where information is communicated through a very direct verbal or written style of
communication.
The cultural values in the societies that lead the drive to achieve success in both is different in the
way they are achieved, as well as how it is measured. In Japan success is measured in material

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rewards. It is achieved through extreme competition between groups, whereas it is achieved
through cooperation and a supportive management style in Denmark, with the success being
measured in quality of life. The intensive competitive environment in Japan is not between
individuals, but between groups, and does see similarities to the Danish cultural value of working
together as a team to achieve a common goal.
4.2 Negotiation Style
Similarities can be found in the overall negotiation strategy, for which both styles of negotiation
are build on an integrative strategy. Both the Danes and the Japanese approach negotiation as a
team effort to create and claim value in a joint problem-solving process.
One major difference between the Danish and Japanese way of doing business can be found in the
process of initiating business. The initial contact prior to doing business is done by simply calling or
sending an e-mail to arranging a meeting with a Danish company, whereas the Japanese do it
through goodwill or an intermediate connection to the company you would like to do business
with. Once the initial contact has been made and the two parties meet, the Dane would usually
make a few minutes of small talk before moving on to discussing business. The difference
compared to the Japanese style of negotiation is that small talk will not be enough to move on to
doing business. An interpersonal relationship needs to be established before business can be
done. This cannot be done with a few minutes of small talk, but may take several months of
conversation and meetings.
An essential part of a negotiation for both Danes and Japanese is the exchange of business cards.
The exchange of gifts on the other hand is very abnormal in Denmark, while important for
meetings in Japan.
Danes do in general hold shorter meetings, going straight to the point in an attempt to speed up
the process. The Japanese style is more detailed, with countless questions being asked to explain
and discuss everything very thoroughly. When discussing the various objectives and issues, the
Danes will in many cases have a natural approach to work down the list of objectives in the
negotiation, discussing and making an agreement on each of them, one at a time, before moving
on to the next objective on the list. The Japanese approach to work on the objectives in the
negotiation is a contrast to the Danish, working on several objectives at a time, going back and

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forth between them. When negotiating the various objectives, the Danes and Japanese have a
different perspective of time. It is the difference between the Danish style of short-term growth

through spending, and the Japanese long-term orientated approach to save and invest in long-
term survival.

As mentioned in the cultural values, Japanese people make decisions collectively as a team. In
negotiations this result in a very slow decision making process, as all team members have to agree
before a consensus agreement can be completed, as opposed to the Danes who are able to make
a swift individual decision on the spot.
The formality of the business meetings is somewhat similar. In Denmark the meetings do not have
a strict structure, and while they often are very formal, it is not always the case. In Japan the rules
for the meeting are stricter, and the language is strictly formal doing negotiations. While meetings
in Denmark are not always formal, emotions are not shown openly. Sharing personal concerns is
disliked. In order to save face the Japanese negotiators will not show any negative emotions,
resulting in them not showing any emotions at all with an inexpressive face and body language.
Losing face would from a Japanese point of view cause a disharmony in the relationship. The
reasoning behind the emotionless style communication doing negotiations is different, though the
result is somewhat similar. The Danes are however a bit easier to read based on their tone and
body language.

5. Empirical Results
The following segment present the results of the empirical study carried out. To begin with, an
overview of the interview is submitted. Following the brief overview, the empirical results is
presented.
5.1 The Interview
An interview was conducted with the current project manager in group value chain at ECCO Sko
A/S, Wesley Hind. ECCO Sko A/S is a global company, manufacturing and selling shoes worldwide.
Followed by a three years trainee program at ECCO, Wesley Hind has worked at ECCO for eight
years, of which four was spend in Tokyo, Japan. During his time in Japan, Wesley Hind held the

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position as the operations manager and worked with the logistics, merchandising, customer
service and IT at ECCO’s Japanese department. The interview was conducted at ECCO Sko A/S in
Bredebro. The recorded interview file is attached to the thesis and can be found in the appendix,
named: Interview with Wesley Hind.
5.2 Communication
On the topic of the Japanese style of communication, Wesley Hind explains that the
communication in Japan is very detailed and thorough. Adding to this he says that Japan is “a
country of engineers, with a very detailed approach to everything”. Everything is taking into
consideration, with every detail of the negotiation discussed. This makes it very easy for everyone
to commit once the details are finalized, as there are no risk for them doing so once everything
has been taking into consideration. The risk aversively Japanese society is by Hostede (2010)
explained as having a high uncertainty avoidance, in which they do not like to leave the future
unknown, but attempt to control it by reducing the risk of failure as much as possible. In addition,
Wesley Hind adds that the Japanese focus on “How not to lose” rather than “How to win” in their
orientation towards the future. The focus lies on reducing the risk, rather than creating solutions
for an increased short-term profit.
According to Wesley Hind, confrontation is seen as a sign of power in the West, but do not get you
anywhere in Japan. He explains how Japanese do not try to stand out, but try to be a part of and
work together as a team. A Japanese saying is mentioned, “The one who jumps out gets
hammered down”, meaning that if someone acts out of line they will be closed down immediately.
The cultural way of dealing with it is to disregard those who stand out. Should a foreigner use
confrontation in the negotiation with a Japanese, one of two things is likely to happen: either the
Japanese will believe that you as a foreigner simply does not understand the Japanese culture and
how it work in Japan, or the Japanese will disregard you and stop listening at all. Either way, it
does no good, but may very likely have a negative effect, and should be avoided at all costs in
negotiations with Japanese.
Graham & Requejo (2009) talk about the importance of using material in the native language
when doing business in a foreign country. While English is not the native language of Denmark,
there is no need for translations from English to Danish. Wesley Hind experienced, doing his time

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in Japan, negotiations of many variations. The negotiations were conducted mainly in either
English or Japanese, depending on the nationality of ECCO’s president present at the meeting:
English was spoken when a Danish president was present, while Japanese when the president
present from ECCO was from Japan. At meetings completed in English, a professional translator
was used to translate everything into Japanese, while a staff member from within the company
was used to translate into English during meetings completed in Japanese. Furthermore, Wesley
Hind mention that even though the main language spoken in the negotiations varied, every single
presentation was completed in English. According to Wesley Hind, a reason for this is that ECCO
mainly deal with international companies. However, even domestic companies did prepare
material in English when doing business with ECCO.
5.3 Relationship
Doing business in Japan can be rather difficult if you do not understand how it works. As explained
by Wesley Hind, you cannot do it like in Denmark and simply take up a phonebook and call
someone you would like to do business with. Business in Japan is more than a one-time profitable
transaction between two companies. It is considered a long-term investment in a relationship
between two companies. Establishing an interpersonal relationship is crucial to doing business in
Japan. As opposed to Denmark, or other Western countries, Japanese companies do not regularly
vendor for cheaper options on an annual basis. The most efficient and easiest way to initiate a
business relationship is, according to Wesley Hind, through an intermediate from within the target
company, or a mutual trusted connection. Graham & Requejo (2009) mention this option as well,
and goes on to explain that the link between the companies do not necessary have to be an
employee within the target company, but may very well be the banker for the company, and old
high school friend, or any other trusted person.
5.4 Meetings
While Wesley Hind mostly negotiated internally, he did experience when ECCO looked for other
possible vendors towards the end of their current contract at the time. In his experience, the
vendors were contacted through a manager’s connections in the industry. These connections then
arranged the initial meetings with the possible new vendors. Before any meetings with the new
vendors could be arranged, the intermediate meet with the representatives from the company
seeking to initiate business. They do so to get a feel out for what the company seeking a new

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business relation was actually after in a new collaboration. This is very common in Japan, as also
explained by Graham & Requejo (2009). Following meetings with the intermediate, a more formal
scripted meeting is scheduled with the new vendors. In the initial meeting the more senior
members of the Japanese organization is included. They do however expect any foreign
companies to mirror this approach. At the initial meeting the more senior members of the
organization is present, including the president. This is to communicate importance and
involvement in the relationship between the two companies or organizations. In Wesley Hind’s
experience the president were excluded in the follow up meetings if a deal was made. They are
mainly present during the beginning of the negotiation, and towards in end when decisions is
made, and an agreement is made. While the president is present at the meeting they do not talk a
lot, but are there more as a ceremonial gesture and sign of respect. The negotiators possess the
knowledge to bargain on behalf of the company in order to reach their desired outcome and goal
for the negotiation.
5.5 Decision making
As mentioned by Katz (2007) it is the norm to make the decision during the meetings in Denmark,
with the negotiators being the decision makers, without the top executives being present in most
cases. Wesley Hind also talk about this as the autocratic business style of the West, where
someone can make a decision on the spot. The negotiators know the desired goals and interests of
the top management. It is their responsibility to make an agreement that fulfill these. However,
according to Wesley Hind, decisions are never made on the spot throughout a meeting in Japan.
Instead they go back to discuss it after the meeting, and then formally announce the decisions
later when the entire group comes to a consensus agreement.
5.6 Information Sharing
In Denmark, trust in a negotiation is built by sharing information (Katz, 2007). According to Wesley
Hind, the Japanese does not give a lot of information away at a time. The decision making is one
example of not giving to much information away at once. Instead of giving information away on
the spot, they draw back and discuss the issues between meetings, which according to Wesley is
announced at a later time, revealing very little information.

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While Japanese do not give a lot of information directly, a lot of information is provided indirectly
through the context of the message. This is also explained by Hall (2010) as one of the
characteristics of a high context culture. Wesley Hind mention doing the interview how
negotiations in Japan are very strict and formal; there is a guideline for how things are suppose to
be done. Small details, such as the position of a person at the table communicate information
about the importance of the person. Knowing that the more senior executives are the one to
make the decisions, one could customize the communication towards the individual in charge.
However, the Japanese society is very much consensus driven, meaning that no decision is made
until a consensus agreement can be made. By asking indirect questions, one can gather more
information from Japanese businesspeople, than asking directly for a yes or no can. By
understanding the context, one can share more information with the Japanese opponents.

6. Conclusion
The purpose of this thesis was to investigate the different ways culture influence cross-cultural
business negotiations between Danish and Japanese companies. Moreover, it seeks to explore the
experience of the negotiators and how they can counter the potential issues that may rise due to
the affect culture has on negotiations.
From Lewicki et al. (2010) I found that the fundamentals of negotiation can vary depending on the
culture. Moreover, based on the theoretical framework, the country specific cultural values found
in Hofstede’s (2010) and Hall’s (1990) models for cultural dimensions, indicated an influence to
certain characteristics in the strategy and process used in negotiation, in addition to how
information was shared and conflicts were solved as a cause of a difference in communication
patterns.
From Katz (2007) and Graham & Requejo (2009) I found that both Danes and Japanese negotiators
use an integrative strategy in negotiations. According to Brett (2001 in Lewicki et al., 2010),
collectivistic cultures mostly use an integrative strategy, while individualistic cultures are more
prone to use a distributive strategy. The empirical results for Japan are consistent with the results
based on Brett’s (2001 in Lewicki et al., 2010) findings, while Denmark diverges from this as an

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individualistic society. The empirical findings suggest this to be because of the very consensus
driven society in Japan. People do not make decisions individually, but work and make decisions
together as a team. This claim is backed up by the theoretical framework, which indicates that
Japan is very creative by nature. Their creative approach to negotiation includes making trade-offs
and compromises across objectives to leave both parties better off. The reasoning for the Danes to
diverge from the norm of an individualistic society is partly due to the belief in honesty and
fairness. They believe that if both parties work together they can generate a better overall
outcome than if one party attempts to claim all the value.
Based on the empirical results, Danes were found to experience Japanese as very detail oriented
people. The uncertainty avoidance of the Japanese makes them cover every detail in a negotiation
to reduce the amount of risks they take. By including all members in the decision making, they can
have more sets of eyes looking over the details of the negotiation to find any potential risk the
others might have missed. If even just one member of the team has an issue with the agreement,
no agreement is made. Instead they continue to discuss to figure out what risks they might have
failed to notice.
The methods used in Danish and Japanese companies to solve conflicts are similar, yet different in
certain aspects. In Japan conflicts are solving by collaboration or by avoiding it to save the
harmony of the relationship. This also applies to negotiations, which in Japan is seen as a
relationship between companies. They experience the direct confrontation used by Danish
negotiators as offending or even disrespectful. In Denmark confrontation is seen as a sign of
power that can be used to claim value in a negotiation. Due to the collectivistic mindset of
Japanese people, where people try to be a part of a team, Danes must avoid standing out by
confronting them directly. The empirical findings confirmed no instance where a Japanese person
confronted another. From a Danish perspective, the experience will be positive when a Japanese
negotiator attempts to solve a conflict by collaborating, as the Danish negotiation style relies on
working together for a joint-problem solving, with an expectation for the other party to
reciprocate.
Negotiators from Denmark and Japan communicate in different ways. From the empirical results I
found a difference the communication patterns, which influence how information was shared.

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While Japanese negotiators are very detail oriented and discuss details very thoroughly, not much
information is shared at any given time. It takes a long time to learn about the preferences and
interests of Japanese businesspeople. Danish negotiators are likely to experience them to hold
back information until it is absolutely necessary to share. In Denmark a direct communication style
is highly valued. In a negotiation this means directly stating the information on their desired
outcome and goals. Japan is a high context culture and most of the information is provided
through the context. The Japanese company will not ask directly, but will through the
intermediate, who arranged the contact between the companies, have some information on the
foreign company’s interests and goals. The Danish negotiators experience of too little information
provided may be due to not understanding the Japanese context.
To conclude the problem statement, culture was found to have a significant influence on
negotiations between Danish and Japanese companies. The most noteworthy effect was found in
the difference between the Danish direct communication patterns as oppose to the Japanese
indirect communication patterns. The difference in communication patterns influenced the
exchange of information and how conflicts were solved. The slow decision making process in
Japan was influenced by the uncertainty avoidance and collectivistic cultural values in contrast to
the individualistic society of Denmark. While the culture was different in almost aspect, with a
significant influence on negotiation, both cultures were found to use an integrative negotiation
strategy.
6.1 Limitations
The most significant limitations in this thesis, which also shaped other limitations, are the limited
time and resources available to complete the research. Only a single case was completed from the
Danish part, while none was made from the Japanese counterpart. This is not enough data to
generalize neither Danish nor Japanese behavior in negotiations. For the purpose of the thesis, the

complexity of both negotiation and culture was greatly simplified, excluding the notions of sub-
cultures and different types of negotiation.

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6.2 Reflection
My initial approach to the data analysis, in which I aimed to make the theoretical framework prior
to collecting the empirical data through interviews, caused some significant limitations in my
study. My aim was to research what data I needed to collect from the empirical research by first
looking into the theoretical framework. However, due to a cancellation from an interviewee along
with multiple delays in going through my networking channels to reach another employee with
experience in Japanese negotiation, it was not possible to conduct follow-up interviews.
Moreover, I was not able to change the approach to research several cases. Due to my initial
approach, only a limited time was scheduled for the first interview, which left me with less data
for the empirical research. A better management of the data collection for the empirical research
would allow me to base the research primarily on the case study, rather than relying on the
theoretical framework with a single case study to back it up.
6.3 Ideas for future study
For further research into the study of how culture influence negotiations between Danish and
Japanese companies, certain other approaches to the study can be taken to create more reliable
and valid results. By studying multiple cases from both the Danish and Japanese perspective, an
external valid and consistent result can be made of the cultural influence on negotiation.
By studying multiple cases, a cross-case analysis technique can be used to compare the similarities
and differences between how the Japanese and Danish negotiator experience negotiation with
each other.
Instead of, or in combination with, collecting data through interviews, more reliable empirical data
can be collection through direct observations can be made by being present at negotiations
between Danish and Japanese companies. This would allow the researcher to gain a deeper insight
into what happen doing the negotiation.

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