How to Handle Cultural Differences in Negotiations with Turkish Shipyards

For Norwegian maritime companies looking to enter into shipbuilding contracts with Turkish shipyards, it is crucial to handle cultural differences effectively. This article explores key aspects of Turkish business culture and provides recommendations on how Norwegian leaders can adapt their negotiation approach to optimize results.

Trust through Relationship Building

A fundamental aspect of Turkish business culture is the emphasis on personal relationships and trust building. Unlike the often transaction-oriented focus found in many Western cultures, Turkish businesspeople prefer to establish strong interpersonal bonds before entering into commercial agreements. Norwegian negotiators should therefore invest considerable time getting to know their Turkish counterparts well during the initial phases of any negotiation process. Frequent social interactions, small talk, and shared meals should be considered valuable opportunities for relationship building.

High-Context Communication and Indirect Approach

Turkey is a high-context culture where much of the communication is implicit and nonverbal, as opposed to the explicit, direct communication characteristic of low-context cultures. Turks often express themselves in indirect, metaphorical terms, where the message must be interpreted based on the context. Norwegian negotiators should be attentive to subtle hints and avoid an overly direct, confrontational style that could jeopardize the relationship. It is advisable to use more circular approaches and references to third parties ("Some think that...") when expressing disagreement.

Polychronic Time Perception

Turkey has a distinctly polychronic time culture, where handling multiple tasks and processes simultaneously is common. This implies a flexible approach to deadlines and a willingness to change the agenda during meetings. Consensus-building processes, where parties gradually approach a solution through repeated negotiation rounds, are an integral part of the decision-making culture. Norwegian negotiators accustomed to a rigid, monochronic time culture may find this frustrating. However, it is crucial to exhibit patience and respect that things take time, rather than pushing for quick clarifications.

Power Distance and Hierarchy

Turkish business culture has traditionally been hierarchical, where power and status are largely tied to age, family affiliation, and position. Important negotiations are typically led by senior decision-makers, while subordinates primarily have an advisory role. Norwegian negotiators should map out the decision hierarchy on the counterpart's side and ensure access to the real decision-makers. At the same time, they should clearly communicate their own mandates, as Turkish negotiators may become frustrated with counterparts who constantly need to consult superiors. In line with the hierarchical culture, one should show great respect for senior individuals and avoid them losing face through open criticism or disagreement.

Integration Negotiations and Flexible Contracting

In line with the relational business culture, Turkish negotiators often prefer integration negotiations that seek to accommodate the interests of both parties through creative solutions, rather than focusing on rigid distributive bargaining. Norwegian negotiators' tendency to insist on predefined positions may be perceived as unconstructive. Pragmatic flexibility and willingness to adjust along the way are important. Contracts should not be over-interpreted, as the parties' contractual commitments will be considered situation-dependent and subject to renegotiation under changed circumstances. This does not mean that contracts can be unilaterally set aside. Rather, there is an underlying expectation that the parties will go a long way to find mutually acceptable, commercially sensible solutions within the contract's framework, in line with the duty of loyalty in a close, trust-based relationship.

Even though younger generations of Turkish businesspeople may place less emphasis on hierarchy, the main features of the culture remain prevalent. Female Norwegian negotiators should be aware of potential challenges when dealing with older, male Turkish decision-makers. It is also advisable to avoid mixing business and politics given Turkey's polarized political climate.

The conclusion is that by understanding and adapting to cultural key factors such as relationship building, indirect communication, polychronic time orientation, hierarchy, and flexible contracting, Norwegian companies can significantly increase their chances of successful negotiations with Turkish shipyards. Cultural adaptability and a strategic, relationship-building negotiation approach will be crucial in establishing long-term, fruitful collaborations.