Vai trò của am hiểu văn hóa và kinh nghiệm giao tiếp trong quá trình kí kết hợp đồng thương mại trong các doanh nghiệp có vốn đầu tư nước ngoài

THAI NGUYEN UNIVERSITY SCHOOL OF FOREIGN LANGUAGES LE THI THUY NGA THE ROLE OF CULTURAL INTELLIGENCE AND COMMUNICATIVE EXPERIENCE IN THE PROCESS OF GETTING BUSINESS CONTRACT IN FDI COMPANIES (Vai trò am hiểu văn hóa kinh nghiệm giao tiếp q trình kí kết hợp đồng thương mại doanh nghiệp có vốn đầu tư nước ngồi) M.A THESIS Field: English Linguistics Code: 8220201 THAI NGUYEN – 2019 THAI NGUYEN UNIVERSITY SCHOOL OF FOREIGN LANGUAGES LE THI THUY NGA THE ROLE OF CULTURAL INTELLIGENCE AND COMMUNICATIVE EXPERIENCE IN THE PROCESS OF GETTING BUSINESS CONTRACT IN FDI COMPANIES (Vai trò am hiểu văn hóa kinh nghiệm giao tiếp q trình kí kết hợp đồng thương mại doanh nghiệp có vốn đầu tư nước ngoài) M.A THESIS (APPLICATION ORIENTATION) Field: English Linguistics Code: 8220201 Supervisor : Dr Hoang Ngoc Tue THAI NGUYEN – 2019 ACKNOWLEDGMENTS The study would not have been completed without enthusiastic support and encouragements of many people I would first like to thank my thesis advisor Dr Hoang Ngoc Tue, Dean of Faculty of Foreign Languages, Hanoi University of Industry The door to Dr Hoang Ngoc Tue office was always open whenever I ran into a trouble spot or had a question about my research or writing He consistently allowed this paper to be my own work, but steered me in the right the direction whenever he thought I needed it I also would like to thank the teachers from School of Foreign Languages Thai Nguyen University, who have given me useful advices and conditions for the completion I would also like to thank all the respondents who took time out of their busy schedules in order to participate in this study and to make the study a success Finally, I must express my very profound gratitude to my parents and to my boyfriend for encouragement providing me with unfailing support and continuous throughout my years of study and through the process of researching and writing this thesis This accomplishment would not have been possible without them Thank you Author Le Thi Thuy Nga DECLARATION ***** -I certify that the monitor thesis entitled “The role of cultural intelligence and communicative experience in the process of getting business contract in FDI companies” is my own study in the fulfillment of the requirement for the Degree of Master of Arts at Faculty of Foreign Language, Thai Nguyen University Signature: Le Thi Thuy Nga Thai Nguyen, 2019 ABSTRACT The world’s economic power is shifting as globalization, influenced by economic growth, trade policy, and new trading relationships presses onward Consequently, more efficient methods and outcomes are necessary The purpose of the study is to find out if cultural intelligence and comunicative experience are related to the success of a business negotiation The empirical part of this study was done using qualitative research method Semi-structured interviews were carried out among participants from different companies Results indicated that aggregate cultural intelligence predicts intercultural negotiation outcomes, intercultural negotiation satisfaction, and intercultural negotiation performancesatisfaction Together, the findings suggest that the cultural intelligence scale can be relied upon to predict intercultural negotiation outcomes as well to select managers for improved negotiation performance Contents ACKNOWLEDGMENTS DECLARATION ABSTRACT CHAPTER 1: INTRODUCTION Background .6 Purpose, research question and scope of the study Research question Structure of the study CHAPTER II: LITERATURE REVIEW Cultural intelligence 1.1 Basic definition of culture and intelligence 1.2 The concept of cultural intelligence 12 1.3 Four facets of cultural intelligence 16 1.3.1 Metacognitive CQ 16 1.3.2 Cognitive CQ .18 1.3.3 Motivational CQ 19 1.3.4 Behavioral CQ .20 International Negotiation 21 Role of Cultural Intelligence in the International Business 23 The difficulties when developing Cultural Intelligence 24 CHAPTER III: METHODOLOGY .26 Research design .26 Culture and its role in organizations 28 The interview setting and participants 30 Research question 32 Data collection 32 Data Analysis 33 CHAPTER IV: FINDING AND DISCUSSION 34 Cultural Intelligence: Cultural awareness .35 Cultural Intelligence as a skill for effective businessman 38 Challenges of CQ in culturally diverse environment 40 CHAPTER V: CONCLUSIONS 42 Recommendations 42 Limitation .43 REFERENCES 44 APPENDIX .47 CHAPTER 1: INTRODUCTION This chapter discusses about background of study, purpose, research question and scope of the study The organization of this study also can find out in this chapter Background Today, it requires an ability to adapt to a variety of cultural situations in globalized world In the pace of globalization, the effectiveness of international assignment is becoming important source of competitive advantage for many organizations (Zhang & Dodgson, 2007) There are more and more companies extending domestic market and accessing to international market With this trend, it is non-denied when international business negotiation becomes a necessary requirement for companies They contact to customers, suppliers from anywhere they get benefits Getting a business contract is not an easy task for anyone And with the businessmen at FDI companies, it is more difficult because they must negotiate with foreigners, who come from many different countries in the world In the progress of negotiation, cultural differences which has significantly impact on the outcome (Angelmar & Stern, 1978), because international business negotiation involves at least two or more parties coming from different cultural backgrounds (Liu & Liu, 2006) Cultural adaptation is an important dimension of this complexity and requires appropriate communication skills (Yamazaki and Kayes, 2004) In the table, negotiators from different countries will have their values and observation, and this will cause some challenges through the process This is the reason: cross-cultural interactions might threaten people as they realize that the previously taken-for-granted assumptions they had are no longer relevant or appropriate when communicating with people from a different culture (Kim, 2001) The feeling of ‘losing-ground’ often leads to anxiety (Bücker, 2014) Studies have shown that cultural intelligence (CQ), which is a person’s ability to adapt effectively to new cultural contexts (Earley and Ang, 2003), can help to reduce anxiety during intercultural interactions (MacNab, Brislin and Worthley, 2012), as it helps individuals to interpret unfamiliar cultural cues (Brislin et al., 2006) The controller in negotiation table will get achievement, and particularly, negotiators play important role is the table Beside the advantages of their companies such as prices, transportation, process, etc , their own experiences, confidence and skills in intercultural context also take part in their successful The negotiators should be raised more awareness about cultural intelligence and their performance to get the best achievement when they have an international business negotiation There has been a growth researches and papers focused on international negotiation or intercultural context Many researchers also focused on negotiators and provided guides for them However, they only referred to developed countries and other developing countries Vietnam is a developing country More and more companies from over the world invest into Vietnam, we call it foreign direct investment companies (FDI companies) The leadership of FDI companies also often contact and make an international contract Therefore, this paper will address the gap of literature regarding on negotiators’ performance and CQ in Vietnam FDI companies This research also figured out the impacts of negotiator’s profile to their international business contract These two factors will be developed in another way with the previous research Purpose, research question and scope of the study International business negotiation is a complexity task, then in this situation each evolved parties always hope about a success negotiation, that is negotiation outcome The businessman taking part in a business negotiation can be divided into types:  Having basic knowledge about local culture and communicative experiences  Having basic knowledge about cultural intelligence, however not know exactly to improve it Therefore, the result of this research can be developed to trends for types of businessman This research will be conducted in Thai Nguyen Industrial Zones to find the difficulties about cultural intelligence and communicative experiences after that suggesting the best solution and recommendations for businessman Moreover, this research can help universities to make a suitable syllabus through teaching and studying Research question To get the answers to the problem statement, the author need to formulate research questions that can be helpful This question will be critical in getting the correct answers, seeing as good questions give good answers:  How FDI leaderships in Thai Nguyen Industrial Zone understand the role of Cultural Intelligence in business negotiation? Structure of the study The research study includes five (5) chapters The first chapter provides the background of the study, general understanding of issue It gives the justification for the project and discusses the importance of the topic This chapter also shows what the objective of the study is and which questions author is going to answer during the research The second (2) chapter summarizes the relevant literature and dealing the theoretical background relevant to the research matters and previous studies in the field This chapter also gives the explanations and definitions for the main concepts used in this study negotation, however they said they get this skill from their failures They not know exactly to set Cultural Intelligence as a skill on negotaton table The Respondent figures out: “Building awareness, Adaptng behavior, studying new language are the key to get CQ skill” He understands exactly what leaderships need to build up CQ in this intercultural context Culturally intelligent leaders are open to knowledge and develop new skills to help them succeed This means understanding the cultural atributes the relatonship between they and their counterparts This may be achieved by developing alliances with other leaders from diferent cultural backgrounds who can provide diferent perspectives for comparison Leader in FDI companies should be comfortable in adaptng their behavior to suit diferent circumstances without changing their inherent leadership style With stronger awareness they can determine Successful global leaders spend tme with their counterparts to understand their comfort level, and listen to what is said and not said Leaders should understand that the way they communicate is critical to their success Once they are aware of the cultural atributes of their counterparts and have adapted to their environment, it will be easier to tweak their communicaton style accordingly Apart from the obvious need to use clear language, this may also mean determining how much information needs to be imparted in order to achieve the required goal It also means adjustng communicaton styles to take into account whether their counterpart’s culture is one that exhibits an implicit rather than explicit manner, as well as non-verbal communicaton traits Comparing to the factors of CQ, the author can point out the lacks of understanding of most of respondents about the necessary to improve: self- presentaton, communicaton, and understanding about culture (Plum, 59 2016) For leadership positons it is now not only necessary to have a high IQ and EQ 60 (emotonal intelligence), but strong Cultural Intelligence (CQ) is also increasingly regarded as a necessary skill to succeed in today’s global business community Challenges of CQ in culturally diverse environment In this part, all respondents agree that CQ is an important element of internatonal negotaton to get successful outcomes They also realize that there are challenges for them in today intercultural context, and they also are essensial opportunity To identfy the profile of the CQ minded leader the interviewer’s queston was about the atracton of working within a diverse environment The general outcome of the opinions is that at the present moment the cultural diversity of working environment is a norm and the employers are interested in a set of job- based skills regardless of the locaton or the cultural background As Respondent states: “We can close the cultural gap by looking at similarities among cultures” Focusing on diferences between oneself and others is not an absolute means to solve interpersonal problems Kowske and Anthony (2007) identified that leadership competence is conceptualized similarly when individuals have similar geographical regional backgrounds (e.g., Anglo and Latin American) Looking at similarities (also commonalites) rather than diferences in people can be a good approach in assistng leaders to communicate and lead more efectvely (Cranford & Glover, 2007) Leaders can thus build relatonships and close the cultural gap before meetng table All respondents agree that who has CQ, who win on negotaton table In global environment, adaptng and learning new things is necessary, however the leaderships in Thai Nguyen Industrial Zone stll have not yet catch this efectvely As David Livermore states: “A leader’s CQ may easily be the single 61 greatest diference between thriving in the 21st century world and becoming obsolete.”, it 62 is an opportunity, also is a challenge to the leadership in Thai Nguyen Industrial Zone Let’s think about the three factors of CQ: Intercultural engagement, Intercultural communicaton, Cultural The leadership can improve their CQ by these ways: “spending tme and money on cross-cultural training, reading a memoir or novel that takes place in another culture to gain a visceral account of what’s going on (The Kite Runner or Man Gone Down are two good options), scheduling lunch with a colleague from a diferent cultural background and discuss leadership diferences in your cultural contexts (David Livermore) 63 CHAPTER V: CONCLUSIONS The author’s work led to conclusion that CQ is a crucial atribute of the efectve leadership within culturally diverse environment This paper has investgated the concept of Cultural Intelligence as a three-dimensional structure the culturally diverse environment and worked on establishing the links between the cultural intelligence and leadership The results of this study support the idea that the role of the cultural intelligence is important from the point of view of a leader on a negotaton table The findings explore the leaderships in Thai Nguyen Industrial Zone stll have some lacks of understanding about CQ term and also show that cultural intelligence is an important skill of the efective leadership within the intercultural environment Recommendations Today, every company that like to business internatonally must understand beliefs and values that underlie their own country’s business and management practces, avoid cultural mistakes and understand the organizatonal and natonal culture of others People with diferent cultural backgrounds often not share the same basic assumptions and this has an influence on internatonal business negotatons on several levels For example, the trust between partes, attitudes toward each other during negotiatons and tactcs and flexibility while negotatng can be afected To prepare for the best development of company, Human resource department also can contribute by choosing the potential candidate for important positons When the company is preparing for negotaton, it must think in the other side of culture, such as on the elements of another country’s culture This is one of the reasons why culture is a main issue that affects internatonal business From 64 the elements of culture, language is one of the most important issues that can afect internatonal business 65 Limitation Due to the small scale and the limited scope of the study, other Industrial zones where there are FDI companies having international business cannot be studied Therefore, the conclusion of this evaluaton cannot be generalized to other similar programs Besides, all leaderships from Thai Nguyen Industrial Zone who often take a negotaton with internatonal customer cannot be reached to gather more representatve data Further evaluaton studies are recommended to investgate a clearer view about the importance of CQ and communicatve experience to the business negotaton in the intercultural context The qualitatve interviews done in this research is limited to a few individuals in Thai Nguyen Industrial Zone that are working as negotators for individual companies The author has limited the scope of the research by choosing the theoretcal material mainly connected the cultural intelligence and its four dimensions Numerous theories on culture and leadership were not specifically explored due to the wide range of interpretatons, non- related to the research aim 66 REFERENCES Adair, W L., Bret, J M., Lempereur, A., Okumura, T., Shikhirev, P., Tinsley, C H., & Lytle, A L (2004) Culture and negotiaton strategy Negotiation Journal, 20, 87-100 https://doi.org/10.1111/j.1571- 9979.2004.00008.x Ang, S., & Dyne, V L (2008) Handbook of cultural Intelligence: Theory, Measurement and Applicaton Antecedents of Four-Factor Model of Cultural Intelligence Lon Don and New York: Routledge Ang, S., Dyne, L V., & Tockstuhl, T (2015) Cultural Intelligence: Origins, Conceptualizaton, Evolution and Methodological Diversity In M J Gelfand, C Y Chiu, and Y Y Hong (eds), Handbook of Advances in Culture Psychology: Oxford University Press Bret, J M., & Okumura, T (1998) Inter-and Intercultural negotaton: U.S and Japanese negotators Academy of Management Journal, 41(5), 495-510 htps://doi.org/10.2307/256938 Bennet, M.J [eds.] (1998) Basic Concepts of Intercultural Communication Selective Readings Boston: Intercultural Press Bjerke, B 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E W., & Maurer, T J (2012) AdvanCQng validity of self-eficacy in negotaton through focusing at the domain level Journal of Occupational and Organizational Psychology, htps://doi.org/10.1348/096317910X531744 69 85, 23-41 M W Morris , K Leung , D Ames , & B Lickel, 1999 ‘Views from inside and outside: Integratng emic and etc insights about culture and justice judgment’, Academy of Management Review, 24: 781–796 70 Ng, KY, Van Dyne, L & Ang, S 2009, 'From experience to experiental learning: Cultural intelligence as a learning capability for global leader development' Academy of Management Learning and Educaton, vol 8, no 4, pp 511-526 Plum, E (2008) CI: Cultural Intelligence: The art of leading cultural complexity London: Middlesex University Press Plum, E (2007b) KI: Kulturel intelligens København: Børsens Forlag Thomas, D.C.; Stahl, G.; Ravlin, E.C.; Poelmans, S.; Pekerti, A.; Maznevski, M.; Lazarova, M.B.; Elron, E.; Ekelund, B.Z.; Cerdin, J.-L.; Brislin, R.; Aycan, Z.; & Au, K (2008) “Cultural Intelligence: Domain and Assessment”, International Journal of Cross Cultural Management, 8(2): 123-143 Thomas, D.C (2006) “Domain and Development of Cultural Intelligence: The Importance of Mindfulness”, Group & Organizaton Management, 31(1): 7899 Thompson, L (1990) The Influence of Experience on Negotaton Performance Journal of Experimental Social Psychology, 26, 528-544 htps://doi.org/10.1016/0022-1031(90)90054-P htps://hbr.org/2004/10/cultural-intelligence Xác nhận cán hướng dẫn: 71 Học viên Cán hướng dẫn 72 Lê Thị Thúy Nga Hoàng Ngọc Tuệ APPENDIX Interview Question What is your name? What industry sector you work in? How long have you been working for the company you are working currently? What is your positon in the company? How many years is your negotaton experience? How would you evaluate your level of cross-cultural experience? Do you know the term Cultural Intelligence? How you define it? Can you name the factors of Cultural Intelligence? Do you think it is important to internatonal negotaton? Did you find internatonal negotaton challenging? If you have any suggestons to improve CQ? 73 ... GETTING BUSINESS CONTRACT IN FDI COMPANIES (Vai trò am hiểu văn hóa kinh nghiệm giao tiếp q trình kí kết hợp đồng thương mại doanh nghiệp có vốn đầu tư nước ngồi) M.A THESIS (APPLICATION ORIENTATION)... developed countries and other developing countries Vietnam is a developing country More and more companies from over the world invest into Vietnam, we call it foreign direct investment companies (FDI... members of a society interpret these concepts For example, every culture has a notion of “Time” Geert Hofstede explains culture as “the collective programming of the mind that distinguishes the members