Tension and trust in international business
negotiations: American executives negotiating
with Chinese executives


Abstract
The purpose of the study is to shed light on the antecedents and consequences
of tension felt during international business negotiations. A total of 176
American and Chinese executives participated in simulated international
business (buyer–seller) negotiations. The negotiations were videotaped, and
the participants completed questionnaires. Each participant was also asked to
review his/her videotaped negotiation, rate the tension felt on a videotape
review form, and briefly describe the antecedents of the tension felt. The data
collected were then analyzed using first a structural equations approach and
then a more exploratory content analysis. Both Chinese and American
executives felt tension during the negotiations. For the Chinese, greater levels
of tension led to an increased likelihood of agreement, but also led to lower
levels of interpersonal attraction and in turn lower trust for their American
counterparts. For the Americans, tension felt decreased marginally the
likelihood of an agreement, did not affect interpersonal attraction, but did
have a direct negative effect on trust. A series of other cultural differences are
also reported. The measure of tension felt developed in the study appears to be
useful methodologically, theoretically, and practically.

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