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The negotiator’s power as enabler and cultural distance as inhibitor in the international alliance formation

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  • Malik, Tariq H.
  • Yazar, Orhan H.

Abstract

We examined how the negotiator’s power, the explorative–exploitative purpose and cultural distance interact in the negotiation for an international business alliance formation. Our participant observation in some several events of negotiation suggests that the executive’s power plays an enabling role in the negotiation for alliance formation. However, cultural distance between the negotiating parties in the international business context hampers the success of the negotiation. In particular, person power supports the explorative alliance purpose. The explorative alliance embodies technical and behavioural uncertainty. On the other hand, position power supports the exploitative alliance purpose. The exploitative alliance purpose more aptly embodies behavioural uncertainty than technical uncertainty does.

Suggested Citation

  • Malik, Tariq H. & Yazar, Orhan H., 2016. "The negotiator’s power as enabler and cultural distance as inhibitor in the international alliance formation," International Business Review, Elsevier, vol. 25(5), pages 1043-1052.
  • Handle: RePEc:eee:iburev:v:25:y:2016:i:5:p:1043-1052
    DOI: 10.1016/j.ibusrev.2016.01.005
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    References listed on IDEAS

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