A Study On Sino-Australian Inter-cultural Communication And Negotiation In Sourcing Projects Of Railway Industry

Inter-cultural communication and negotiation, is a key aspect of international project management. Errors in this area not only cause schedule delay or cost loss, and impact the efficiency and effectiveness of the project, but also may play an even more fatal role in the final result of the project. Geert Hofstede’s cultural dimensions theory is one of the classic studies among many researches regarding inter-cultural communication and negotiation. In Hofstede’s cultural dimensions, most of them have great connection with international business negotiation, such as long term vs short term orientation, uncertainty avoidance, individualism vs collectivism, and power distance, etc. Australia is an important country to China, in both political and economic domains. The business in railway industry between China and Australia is also an important part of such a rapidly growing bilateral trade.In this thesis, the first work undertaken is to analyse literatures in inter-cultural communication, project management, and Sino-Australian trading relationship. Inter-cultrual communication’s historic evolution is reviewed, the importance of inter-cultrual communication in project management is illustrated, and the necessity of analysis on communication and negotiation of trading activities between China and Australia is studied.Then based on the writer’s actual works completed as a project manager for dozens of Sino-Australian projects over five years, sixty nine typical cases were selected, sorted based on Hofstede’s cultural dimensions and stages of negotiation. Then the negotiation technique in each case was appraised, along with improvement recommendation and solution.A factor analysis system was then established for Chinese negotiators facing an Australian opponent. Through questionnaire, fuzzy comprehensive evaluation, and analytic hierarchy process, all factors in each negotiation phase were compared, and ranked by importance. Finally, strategic advices and verbal techniques for Chinese negotiators were worked out. The thesis analyses lessons learnt and studies major factors impacting communication and negotiation in Chinese companies’ sourcing projects from Australian suppliers in railway industry, by utilising Hofstede’s cultural dimensions theory. The intention is to offer Chinese negotiators facing Australian opponents a set of multidirectional negotiation strategy and tactics advice, guide them to undersrand the Australian business culture, to see the value of cooperation through the cultural differences, and gain the optimal result for their projects.