The Role of Time in International Business Negotiations

Among all cultural dimensions which have a significant but almost invisible impact on
business negotiations, time patterns are probably the strongest (Usunier: 153). Time
influences the pace of negotiations and the punctuality in meetings. For negotiators, it is
important to have advance information on the opposite party's behavior regarding time. This
will help them plan their time as well as have patience and not to get irritated during the
process.
This chapter attempts to present an overview of how and why peoples handle their time
differently. Then the tips for using time wisely in international business negotiations are given
with a view to improve the negotiation outcome.
Time is not what a watch reads, as remarked by Marieke de Mooij, the Danish guru of
marketing across cultures. According to Edward Halls two modes of structuring time,
peoples vary along the continuum between mono-chronic (M-time) and poly-chronic cultures
(P-time) at the two ending points (Bond, year?: 49) (See table 1).
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

Table 1 Monochronic-Polychronic scale

Germans, Swiss
Americans (White Anglo-Saxon Protestant)
Scandinavians, Finns
British, Canadians, New Zealand
Australian, South Africans
Japanese
Dutch, Belgians
American sub-cultures
French, Belgians (Walloons)
Koreans, Taiwanese, Singaporeans
Czechs, Slovenians, Croats, Austrians, Hungarians
Chinese
Northern Italians (Milan, Turin, Genova)
Chile
Other Slavs
Portuguese
Spanish, S. Italians, Mediterranean peoples
Indians, Pakistanis, etc.
Polynesians
Latin Americans, Arabs, Africans

Edward has termed doing many things at one time, polychronic, P-time. P-time stresses
involvement of people and completion of transactions rather than adherence to present
1

schedules. Appointments are not taken as seriously, and, as a consequence, are frequently
broken. Latin Americans, Arabs, Africans, for example, belong to a culture which uses P-time,
that is to say, they do many things at once, often in an unplanned order. In contrast, The North
European system---doing one thing at a time---is monochronic, M-time. M-time people, like
Swedes, Swiss, Dutch and Germans, do one thing at a time, concentrate hard on that thing and
do it within a scheduled time scale. They think that in this way they are more efficient and get
more done.
This M-time/P-time temporal orientation is evinced in their different attitudes towards
time. For M-time Americans, they prize time as a tangible commodity. They use time wisely
by scheduling it in advance, establishing timetables and setting deadlines for themselves. To
be kept waiting is frequently taken as an insult or a sign of irresponsibility. For Chinese
people, time is plentiful. Detailed plans cannot affect the course of nature, human affairs
should not be subject to attempts at rigid control, a long term goal is desirable. P-time peoples
are not very interested in schedules or punctuality. They pretend to observe appointments,
especially if a M-time partner insists. They consider reality to be more important than manmade appointments. They do not like to leave conversations unfinished. For them completing
a human transaction is the best way they can invest their time. The Chinese are fully capable
of structuring events within their P-time framework by relying on the dictates of hierarchy
and relationship to direct the unfolding of their lives together. If a particular interaction is not
completed, a longer time perspective and a cyclic view of time will reduce any sense of panic.
Everything will happen in its own time!
M-time/P-time attitudes form the motivating factors behind different behavioral styles
(See Table 2). The question of time can create frustration and misunderstanding between a
culture emphasizing punctuality, such as Germany, and one where punctuality is of less
importance, such as in Latin cultures. German negotiators can easily interpret Latin time as
being disrespectful if they are kept waiting. On the other hand, representatives from Latin
cultures can feel that the German emphasis on punctuality is pushy. These conflicting
reactions can create an underlying tension, which could sour the negotiation milieu.

Table 2 Behavioral Styles of M- and P-time Cultures

Monochronic
Introvert
Patient
Quiet
Minds own business
Likes privacy
Plans ahead methodically ()
Does one thing at a time
Follows systems
Works fixed hours
Punctual
Dominated by timetables and schedules
Compartmentalizes projects
Sticks to facts
Gets information from statistics, reference books,
database
Job-oriented
Works within department
Follows correct procedures
Accepts favors reluctantly
Plays role within team
Delegates to competent colleagues
Completes action chains
Likes fixed agendas
Brief on telephone
Uses memoranda
Respects officialdom

Polychronic
Extrovert
Impatient
Talkative
Inquisitive
Gregarious
Plans grand outline only
Does several things at once
Mixes systems
Works any hours
Unpunctual
Timetable unpredictable
Lets one project influence another
Changes plans
Juggles facts
Gets first-hand (oral) information
People-oriented
Goes round all departments
Pulls strings
Seeks favors
Plays as many roles as possible
Delegates to relations
Completes human transactions
Interrelates everything
Talks for hours
Rarely writes memos
Seeks out (top) key person

Time occupies a prominent place in the model of the world characterizing a given
culture (Gurevitch, 1976:229). When people from a M-time culture work together with
persons from a P-time culture, irritation results on both sides. Unless one party adapts to the
other, ---and they rarely do---constant crises will occur. Imagine a M-time person negotiating
with a person on P-time! Phones are ringing, secretaries are needing your signature, and so
on, assuming, of course, that you have met at the appointed time in the first place!
A study of attitudes to time in a Swiss-Italian venture showed that each side learnt
something from the other. After initial quarrelling, both parties cooperated for a few months.
The Italians finally admitted that adherence at least in theory to schedules, production
deadlines and budgets enabled them to clarify their goals and check on performances and
efficiency. The Swiss on the other hand found that the more flexible Italian attitude allowed
them to modify the timetable in reaction to unexpected developments in the market, to spot
deficiencies in the planning which had not been evident earlier and to make vital last-minute
improvements in extra time. No culture is inherently superior, or inferior, to any other, just

different.
The impact of time works through international business negotiations. This can be seen
from Table 3.
Table 3

Time in International Business Negotiations

Starting the negotiation

Time in the negotiation process

Relationship time frame

Time as an outcome variable

Time for preliminaries (getting to know

each other)
Settling the agenda/scheduling the
negotiation process
Making
appointments
and
setting
deadlines
Managing temporal clash in IBNs
Temporal clashes between negotiating
organizations
Time pressure in the bargaining process
Timing of concessions
Long-term orientation favoring an
integrative orientation
Making
plans
together;
planning
construction and resources; dealing with
deadlines and delays
Discrepancies in the partners temporal
cultures
Relationship vs. deal; continuous vs.
discontinuous view of time
Written agreements as a time-line for
negotiation

Time is related to the structure of negotiation: parties may set a common agenda, plan
and organize negotiation on the base of precise time schedules, or on the contrary, they may
prefer an informal style of negotiation in which time is seen as a constraint rather than a key
resource. Time may also influence negotiation strategies in as much as future orientation
seems a necessary prerequisite for developing an integrative strategy. Time works also for a
process variable, influencing negotiation phases, the appointments between the parties, and
the rhythm of negotiation, its pace, speed, and its rituals. Finally, time is embedded in the kind
of outcomes sought by the parties, whether a deal, with strict time boundaries, or a
relationship which is hoped to extend into the long term. These different aspects of time as
presented in Table 3 must be considered in international business negotiations when they
involve people from different cultural backgrounds.

Lack of time-related cultural awareness can lead to failed negotiations. The negotiation
scheduling process can put one party at a considerable disadvantage. Businesspeople going
overseas to negotiate with customers or suppliers often find negotiations are scheduled to begin
immediately after their arrival, when they are still suffering from the fatigue of travel and jet lag.
Alternatively, delay tactics can be used to squeeze negotiations into the last remaining minutes of
their visit in order to extract concessions from the visiting party (Herb Cohen, 1980). JapaneseAmerican case????
The role of time can also be used to gain advantage.

Tips for Using Time Wisely in IBNs

Culturally different time frames influence the pace of negotiation and punctuality in
meetings. For negotiators, it is important to have advance information on their counterparts
regarding time. This will help them to plan their time as well as to have patience and not to
get irritated during the process.
To summarize, the International business negotiator, should follow some basic rules:
1.

Take time for adequate preliminaries: getting to know the other party is most often
crucial. More time is needed than in domestic business negotiations, since cultural as
well as personal knowledge has to be acquired.

2.

Control your time: do not get trapped by your own cultural time model; that is, try to be
aware of it. If needed, be prepared to renounce a negotiation, because the stakes are too
low, or send lower level, less expensive executives, If possible, negotiate at home where
you have a competitive advantage over your foreign partner in terms of time control.

3.

Never tell the other side when you are leaving because this gives them control over your
time.

4.

Allow yourself plenty of time, and even more: patience is an asset fro negotiation and it
is destroyed by time pressure. In the US-Vietnamese peace talks in Paris, the Vietnamese
were at a time advantage because they had rented a villa with a two and a half years
lease, whereas the Americans rented hotel rooms on a week-to-week basis.

5.

Do not get fooled by the other party seemingly sharing your time pattern: try to set
realistic dates and deadlines and, if needed, plan softly, introducing time slack, allowing
for delays to be absorbed without ruining the economy of the whole adventure.

Remember: better plan modestly and realistically than go into enormous delays that ruin
the credibility of the whole planning process.
6.

Accept temporal clash to the extent possible. Before participating in a negotiation, learn
the basics about the behavioral norms in your partners culture concerning appointments,
punctuality and planning.

7.

Wait for the negotiation process to extend beyond the signature of the deal. For most
cultures there is no clear time-line defined by the signing of a contract, the most
important time frame is that of the relationship, not that of a particular deal.

8.
Different behavioral styles are rooted in attitudes and values attributed to time across
cultures. The time-related cultural differences are given in Table 3.
Table 3 Time-related Cultural Differences
Basic problem/cultural orientation

Contrasts across cultures

Is time money?
(a) Economicity of time

Time is regarded as a scarce resource or,

conversely, as plentiful and indefinitely
available

How to schedule tasks

(b) Monochronism vs. polychronism

Only one task is undertaken at any (preset)

time, following a schedule (agenda society),
versus dealing simultaneously with different
tasks,
actions
and/or
communications
(polychronism) for convenience, pleasure and
efficiency.

Is time a continuous line?

(C) linearity (L) versus cyclicity (C) of time

Time is seen as linear-separable, cut in slices

(L) versus the daily, yearly and seasonal cycles
which are emphasized(C) .

How should we emphasize past, present and

future? (d) temporal orientations
(i) towards the past

People with high past orientation consider that

the past is important, that resources must be
spent on teaching history and building
museums, referring to oral and written
traditions and past works. Their basic
assumption is that their roots are implanted in
the past and no plant can survive without its
roots. Conversely for low past orientation.

(ii) toward the present

People with high present orientation consider

that they basically live here and now.
Although not always enjoyable, the present
must be accepted for what it is: the only true
reality we live in.

(iii) towards the future

People easily and precisely envisage and plan

their future. They are project-oriented, prepare
for the long-term, appreciate the achievements
of science, and so on. For them the future is
inevitably bigger and better? Conversely for
low future orientation.