Influence of cultural difference on international business negotiations : a comparative analysis of Finland and Pakistan

Abstract

This thesis was commissioned by Imran Qaisar with the title, “Influence of cultural difference on international business negotiations, a comparative analysis of Finland and Pakistan”. The main objective of this thesis work was to implement a comparative analysis between Finnish and Pakistani business customs, culture and negotiations. Through literature, data was collected to analyse the trends of cul-tural differences and their impact. This thesis is based on a quantitative research method. A survey was carried out using Webropol survey and reporting tool. A questionnaire was provided which was filled and submitted by 36 people who had knowledge of business cultures and negotiations of Fin-land and Pakistan.
 
 The results of the survey showed different factors affecting business negotiations. According to the survey, Finnish culture is more collaborative when it comes to decision making while Pakistani cul-ture uses hierarchical approach. Similarly, Pakistani business culture is inclined to indirect and implic-it while Finnish culture supports direct and explicit communication style. These also include struc-tures of the business environment, high power distance, role of gender, uncertainty avoidance, goal setting approach, cultural sentiments and work-life balance. It is very important to have knowledge about the cultural similarities and respect the cultural differences as well as not to go against cultural practices when doing international business negotiations.