Hidden influences in international negotiations: The interactive role of insecure cultural attachment, risk perception, and risk regulation for sellers versus buyers

• Author: Mary C. Kern,Tuvana Rua,Sujin Lee,Wendi Adair,Zeynep G. Aytug
• DOI: http://doi.org/10.1002/tie.21981
• Date: 01 March 2019
• Published date: 01 March 2019

INTERNATIONAL BUSINESS THEORY AND APPLICATION

Hidden influences in international negotiations:

The interactive role of insecure cultural attachment,

risk perception, and risk regulation for sellers versus buyers

Tuvana Rua

1

| Zeynep G. Aytug

2

| Mary C. Kern

3

| Sujin Lee

4

| Wendi Adair

5

1

Welch College of Business, Sacred Heart

University, Fairfield, Connecticut

2

College of Business Administration, California

State Polytechnic University, Pomona,

California

3

Zicklin School of Business, New York,

New York

4

Graduate School of Innovation and

Technology Management, KAIST, Daejeon,

South Korea

5

Department of Psychology, University of

Waterloo, Waterloo, Ontario, Canada

Correspondence

Sujin Lee, Graduate School of Innovation and

Technology Management, KAIST, 373-1

Guseong-dong, Yuseong-gu, Daejeon 305-

701, South Korea.

Email: sujinlee@kaist.ac.kr

This research examines the previously unstudied role of cultural attachment in international

negotiations. Specifically focusing on the fearful attachment style, this article reveals the intri-

cate interaction of cultural attachment, risk perception, and risk regulation on negotiators' abil-

ity to claim value in international negotiation. Supporting our theorizing based on cultural

attachment and prospect theory, findings show that risk-averse sellers with fearful attachment

to their national culture perceive greater risk and in turn are more motivated to regulate risk

through relationship-building with their counterpart (Study 1). Moreover, these individuals

achieve lower economic gains when they regulate relational risk by making fewer threats to

walk away (Study 2). We discuss the implications and the importance of understanding one's

attachment to own national culture as its interplay with role and risk mechanisms impacts

effectiveness in international negotiations.

KEYWORDS

attachment to cultural groups, cultural attachment, international negotiation, risk perception,

risk regulation

1|INTRODUCTION

International trade and thus intercultural transactions have become

commonplace (Brett & Okumura, 1998; Hummels, 2007; Volkema,

1998, 2012). The international mobility of employees in organizations

has also increased through traditional forms of expatriation, short-

term assignments, and business travel (Salt & Wood, 2012). Thus, in

today's global economy and business environment, more and more

negotiations take place in a global context. Consequently, the ability

to negotiate effectively in global settings has become a key aspect of

many organizational relationships, including strategic alliances, joint

ventures, mergers and acquisitions, licensing and distribution agree-

ments, and sales of products and services (Adler, 2002; Gammelgaard,

Kumar, & Worm, 2013; Imai & Gelfand, 2010; Volkema, 1998, 2012).

The prevalence of these international business interactions underlines

the importance of understanding individuals' psychology and percep-

tions in global contexts (Pekerti, Vuong, & Napier, 2017; Vuong &

Napier, 2015) that can ultimately impact the social interaction pro-

cess and outcomes (Brett, 2007). Of particular importance to the

examination of international interactions is individuals' relationship

with their own national culture since individuals’personal connection

with their own culture can shape their perceptions and behaviors in

situations where their cultural identity is magnified (Hofstra, Van

Oudenhoven, & Buunk, 2005; Hong, Fang, Yang, & Phua, 2013).

To the extent that negotiation is defined as interdependent

decision-making under conditions of risk and uncertainty, the percep-

tion and regulation of risk are key elements of negotiation, and are

directly related to economic outcomes (Bazerman & Neale, 1992; Lar-

rick & Wu, 2012). Particularly, international negotiation situations

present a high degree of uncertainty and are perceived to involve sig-

nificant risk (Brett, 2007; Kim, 1995; Neuliep & Ryan, 1998). In this

research, we argue that individuals’relationship with their own

national culture, a form of cultural identity, will influence their risk

perception and regulation (i.e., risk seeking vs. risk avoidance) in inter-

national negotiations. Specifically, this article makes three novel con-

tributions to the literature by (a) introducing the construct of

psychological attachment to culture in international negotiations,

(b) focusing on fearfully attached negotiators, who will be by

DOI: 10.1002/tie.21981

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