As one of the most important emerging markets, China presents the greatest challenge to companies that are planning to enter its market. The purpose of this study is to examine a critical process required for any successful market entry – negotiation – and explore the impact of individual perception on negotiation process within Chinese culture.
Specifically, the paper explores how negotiators' perception of the negotiation structure and the alternatives to the negotiated agreement would affect negotiation behaviors and outcomes in a Chinese context.
The results showed that the perception of an integrative potential for the negotiation situation predicted more integrative behaviors and the perception of better alternatives predicted more competitive behaviors during a negotiation simulation.
Implications are discussed on how to negotiate into China.
