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traditional time, and procedural-traditional time. Most of the European
and North American cultures belong to the category of linear-separable
time, in which time is perceived as a straight line that is consisted of the
past, present, and future. Therefore, time is valuable, and the time spent

in the past contributes towards the future. In the category of circular-
traditional time, time is circular, and the future cannot be changed. The
future is also a replay of the past, thus time has no value and planning is

not needed. In the category of procedural-traditional time, the time spent
on an activity and the process is important. Time and money are two
separate things, and the results are determined by the effort instead of
time (Yu, 1994). A culture’s definition of time influences how its people

negotiate. Therefore, the misunderstandings that often occur in
international negotiations are usually caused by the different
understandings of time in different cultures.

Risk Tendency
Cultural differences also often determine negotiators’ willingness
to take on risks. The bureaucratic systems of certain cultures prefer to

make decisions when sufficient information is available. The Japanese
principle in negotiating is to reduce the risk as much as possible and
avoid face-to-face conflicts, and one reason behind this is to avoid being

held personally responsible for the consequences of a decision.
Therefore, Japanese employees seldom make decisions on their own so
as to avoid being blamed for making the wrong decision. For cultures
that are more entrepreneurial, such as the U.S., practicality and

efficiency are valued; therefore, people in such cultures are willing to
make decisions even though they have not yet fully acquired sufficient
information.

Group and Individual
Cultural differences influence how much weight is placed on
individualism or collectivism. Emphasizing individuality, Americans
value independence, boldness, and uniqueness. In an individualistic

country, a person is often responsible for the last decision, whereas the
people in a collectivistic country believe that the group comes before an
individual, and individual needs are secondary. The final decision in a

negotiation is often reached through group discussions, and the
responsibilities are shared since a group of people all participated in the
discussions and decision-making.