It is mutual respect that matters when it comes to intercultural negotiations (Guba & Lincoln, 1994). One of the ways that mutual respect can be shown is through learning about the other culture, so that it is less unique or shocking, and so there is a better understanding of some of the things that might be said and done during negotiations (Greenwood, et al
When negotiating across cultures, it is important to understand what can be pushed for and what simply cannot be changed. All cultures have things about which they feel very strongly, and if something is part of a person's culture, he or she may be very reluctant to change it (Grunig, 1992)
Being respectful is vital, but it must not be allowed to lead to one person or the other becoming a "doormat" and allowing the other person to walk all over them. It is mutual respect that matters when it comes to intercultural negotiations (Guba & Lincoln, 1994)
Corporate Diplomacy: IKEA and the Russian Market A Communication Strategy of Multinationals in Relation to Host Governments Corruption in the Russian Market One of the main issues IKEA faced when it attempted to get into the Russian market was corruption (Heath, 2010)
Corporate Diplomacy: IKEA and the Russian Market A Communication Strategy of Multinationals in Relation to Host Governments Corruption in the Russian Market One of the main issues IKEA faced when it attempted to get into the Russian market was corruption (Heath, 2010)
Corporate Diplomacy: IKEA and the Russian Market A Communication Strategy of Multinationals in Relation to Host Governments Corruption in the Russian Market One of the main issues IKEA faced when it attempted to get into the Russian market was corruption (Heath, 2010)
Corporate Diplomacy: IKEA and the Russian Market A Communication Strategy of Multinationals in Relation to Host Governments Corruption in the Russian Market One of the main issues IKEA faced when it attempted to get into the Russian market was corruption (Heath, 2010)
If Russia needs to work on its business diplomacy in order to attract more companies, than the companies and corporations that want to do business with Russia should also practice diplomacy. When companies are diplomatic, they can accomplish much more and often create better deals that are highly beneficial to both parties (Henisz, 2014)
While corporate diplomacy is not always easy, it is very important to the success of a developing business. Being diplomatic with people one is used to is far different than working with a different country on something as important as a large corporate venture (Jablin & Putnam, 2001)
Fortunately, it can also be easy to make it up in other areas, and some mistakes are bound to happen. Working with Russia, though, can require stronger levels of corporate diplomacy than what would commonly be seen, because the government and officials there are very different from what is seen in Western countries and throughout much of Europe and Asia (Khattab, Anchor, & Davies, 2007)
IKEA refused, and rented generators that ran on diesel and would power their store. It was not long until the power was turned on, without the bribe (Kramer, 2009)
Every company, just like every person, had a point at which they draw the line and will go no further, even if that stops the negotiations. By knowing in advance where that line is, and determining if there is any "wiggle room" to move the line or make adjustments, a corporation can be sure about what it is doing when it moves into a new country and can still keep to the core beliefs it holds (L'Etang & Pieczka, 2006)
When that happens, tensions and start and people can become defensive, even though there was nothing that either party should have really gotten upset about. Not only is that frustrating, but it can signal the end of negotiations, even if the two parties would have otherwise been likely to agree (Leonard, Stead, & Smewing, 2002)
Corporate Diplomacy: IKEA and the Russian Market A Communication Strategy of Multinationals in Relation to Host Governments Corruption in the Russian Market One of the main issues IKEA faced when it attempted to get into the Russian market was corruption (Heath, 2010). Because of the level at which that corruption took place, IKEA publicly rallied against it in an effort to change some of the problems that appeared to be so inherent in Russia's political system (Meyer, 2011)
Strategic Management Among the many ways companies like IKEA can be successful in markets like Russia is through strategic management. Having a strategy is important, but so is knowing when to adjust that strategy and try something new because things are not working quite the way they were planned or expected to (Moss, 2002)
Additionally, many companies are not completely aware of what goes on in the business world of another country until those companies attempt to move into that country and find that they are hitting road blocks because they do not do things the same way the country does (Salacuse, 1999). That is not the case with all companies and all countries, but it is a relatively common issue that has to be faced by most corporations that decide they want to work with other countries (Stephens, Malone, & Bailey, 2005)
Even a heated debate can leave people feeling as though they no longer want to do business with one another, when before they felt as though they would have worked well together (Abrahamson & Eisenman, 1999). It is no secret that the policies and procedures required to get a company up and running in the Russian market can be frustrating, but a high level of diplomacy can go a very long way toward helping companies get into that market and have a level of success that they might not have otherwise seen (Tse, 2010)
This has been seen for many years, and it does not look as though anything about it will be changing anytime soon. Part of the reason for the lack of change is that Russia has never been a country that is big on making changes, and part of the reason is that the country does not seem to have a desire to become "Western" in the way many other countries have (Wood, 2011)
Similar impacts are felt for example when the euro struggles. Declines in the euro mean a stronger dollar, and that lowers oil prices, which again hurts Russia's revenues (Gilman, 2010)
The latter has benefited from improvements in the country's crime and corruption scene, as well as modernization of the legal system. With improve socio-economic structures, Russia is able to enjoy some of the benefits of globalization (Kochtcheeva, 2010)