How do cultural differences in trust impact negotiation outcomes? Professor Amit Nandkeolyar writes from a recent research conducted with colleagues Dishan Kamdar from the Indian School of Business (ISB), and Brian Gunia and Jeanne Brett, both from the Kellogg School of Management.
A decade of explosive growth has resulted in India becoming the world’s fourth largest economy in 2010. As India’s development continues, business negotiations, both within India and across cultures, will increasingly determine whether the country stagnates or integrates into the world economy. If Indian managers can use negotiations to create joint gains (value that benefits both themselves and their counterparts), then deals would get made and businesses would prosper. On the other hand, if Indian managers negotiate poorly – reaching deals that leave potential gains on the table – India’s businesses will suffer, with consequences for its billion-plus citizens and the broader global economy. Hence, it is critical to understand how managers can successfully create joint gains.