paper number: p1029 paper number: pp11002299p1029 · paper number: p1029paper number:...

Paper Number: Paper Number: Paper Number: Paper Number: P1029P1029P1029P1029

International Business Negotiations

from the Islamic Perspective

Christopher Richardson

Universiti Sains Malaysia

Malaysia

Paper Number: Paper Number: Paper Number: Paper Number: P1029P1029P1029P1029

International Business Negotiations

from the Islamic Perspective

ABSTRACT

In order to succeed in negotiations in Muslim-majority markets, managers need familiarise

themselves with how their Muslim counterparts may be influenced and guided by their

religion. Drawing on interviews with nine devout Muslim managers, this work-in-progress

study discusses the role Islam plays in shaping its adherents’ approach to negotiations. The

findings suggest that Muslim negotiators place particular emphasis on gender relations and

adab (Islamic mannerisms), as advocated by their religion, and that there is a tendency to

adapt their negotiation style depending on whether or not their counterparts are also Muslim.

Keywords: Negotiations, religion, Islam

1. INTRODUCTION

Business negotiations conducted across national borders often pose a challenge for

management practitioners, thus representing a critical step in the foreign expansion of many

firms. Failure to successfully navigate through the complex cultural hurdles that exist in

international negotiations can delay efforts to penetrate a foreign market, or worse, result in

the complete failure of the proposed entry (Gulbro & Herbig, 1996; Tung, 1991). Therefore, it

is important for international business (IB) negotiators to prepare themselves for the cultural

differences they are likely to encounter abroad.

IB scholars have examined the styles of business negotiators in a vast array of national

settings, including the Chinese (Ghauri & Fang, 2001; Zhao, 2000), Japanese (Graham, 1993),

Korean (Tung, 1991), and Arab (Alon & Brett, 2007; Khakhar & Rammal, 2013) contexts,

among others. Comparative studies of different negotiation styles have also been common

(see, for example, Graham, Evenko, & Rajan, 1992; Lee, Yang, & Graham, 2006; Metcalf,

Bird, Shankarmahesh, Aycan, Larimo, & Valdelamar, 2006). However, few studies have

investigated the influence of the religious beliefs of negotiators on their approach to IB

negotiations. Given that more than 83 percent of the global population is religiously affiliated

(Pew Research Center, 2014), this is somewhat surprising. This study seeks to provide some

insight into the Islamic context, which has received relatively little attention from

management scholars (Gohrbani & Tung, 2007; Richardson, 2014). In light of this, and given

that a number of countries in the Islamic world are beginning to play a more prominent role in

IB (Weir, 2000; Zahra, 2011), it is both imperative and timely to seek a better understanding

of the environments facing prospective IB practitioners seeking to operate in the various

markets that constitute the “ummah” (the global Muslim community).

Despite the cultural variation one can see across the Muslim world, it is also possible

to observe a remarkable sense of unity, which stems directly from Islamic teachings. The very

Paper no. P1029 Page 1 of 29

2015 AIBSEAR Penang Conference December 3-5, 2015

fact that one can even speak of “the Muslim world” in the first place is in itself indicative of

some form of collective identity. Although some may question the use of this label for its

assumption of a common religious link between what are rather diverse countries (e.g. Turkey

and Saudi Arabia), there is no denying the central role the religion has played, and in most

cases continues to play, in shaping the customs, beliefs, and values of each society that has

embraced it. This stems in large part from the fact that, unlike in many other parts of the

modern world, the chasm that emerged between the “secular” and the “spiritual” realms

following the age of Enlightenment never really became a defining feature of most Muslim

societies. On the contrary, they have, by and large, managed to preserve their religion’s

central place in public life despite the forces of secularism and modernism, which have

succeeded in curtailing religion’s influence in the public domain elsewhere. In other words,

religion continues to be very much a part of the public sphere, and is not restricted to one’s

private life. The business domain is no exception, with Islamic teachings providing various

guidelines on appropriate and ethical business practices (see, for example, Mohammed, 2013;

Rice, 1999; Richardson, Sinha, & Yaapar, 2014). In this study, we focus on the specific case

of business negotiations and how the Islamic worldview—and the ethics and values arising

from within it—might influence the behaviour and style of negotiators who follow the

religion.

The paper is structured as follows. The following section provides an overview of

cross-cultural business negotiations. Next, we look in more detail at Islamic teachings and

their implications for the negotiation process. We then describe the research method adopted

in the study before discussing the findings. The paper rounds off with some concluding

remarks and implications for management practitioners.



2. LITERATURE REVIEW

2.1 The role of culture in international business negotiations

A paradoxical feature of the increasingly globalised “flat” world today is how the local

context, rather than diminishing in significance, continues to play a crucial role in

determining the international success of firms (Meyer, Mudambi, & Narula, 2011). Variations

in legal regulations, human resource practices, political systems, and cultures present key

challenges to international firms. Among this array of influences, culture is regarded as being

the most pertinent in the field of IB by Geert Hofstede (1994), who defines culture as “the

collective programming of the mind which distinguishes the members of one category of

people from another” ( 1994: 1). The role played by culture in IB becomes particularly

prominent when discussing international negotiations (Brett & Gelfand, 2005; Ghauri, 2003;

Requejo & Graham, 2008).

Negotiation is simply a communicative process in which two or more parties seek to

reach an agreement on matters of mutual, and sometimes conflicting, interest. As economies

around the world become increasingly interconnected and interdependent, business

negotiations that take place across borders and cultures are becoming more commonplace.

Nevertheless, the international business negotiation is often portrayed as a challenge for the

managers involved. While many IB negotiations succeed (Sheer & Chen, 2003), the failure of

many others is testament to their complexity. For example, Gulbro & Herbig (1996) suggest

that as many as two-thirds of cross-cultural negotiations fail. Although various factors may

contribute to negotiation failure, cultural differences are among the most frequently cited in

the literature (Oikawa & Tanner, 1992; Paik & Tung, 1999; Reynolds, Simintiras, & Vlachou,

2003). Tung (1991: 37), for instance, warns that “ignoring cultural differences can damage or

even halt negotiations.” As a result, negotiators have been advised to be prepared for the

idiosyncratic styles and patterns of potential foreign counterparts (Tung, 1989). In some



instances, firms even equip their negotiating teams with a “cultural moderator,” that is,

someone from the same cultural background as their counterparts in the negotiation (Wilken,

Jacob, & Prime, 2013).

According to Ghauri (2003), all business negotiations consist of three stages, the pre-

negotiation, face-to-face negotiation, and post-negotiations stages, with cultural factors

playing a key role in shaping each stage. In particular, Ghauri explains that cultural

differences with respect to: (1) the perception of time, (2) individualist vs collectivist

behaviour, (3) patterns of communication, and (4) emphasis on personal relations are of

paramount importance in affecting the negotiation process.

2.2 Islamic perspectives on negotiation

2.2.1 The role of tawhid

In order to gain a better understanding of the value systems and negotiating style of a

particular cultural group, we need to examine its overarching worldview. The first thing to

note is that traditional Islam has always rejected a distinction between the “spiritual” and

“secular” in any realm of life (Al-Attas, 1985). In several classical Islamic languages like

Arabic and Farsi, there was not even any word that corresponded directly to the term “secular”

(Hashemi, 2009). Islamic teachings guide all areas of human activity, from eating and bathing

to education, politics, and even the treatment of prisoners of war. This philosophy stems from

the Islamic doctrine of tawhid, which is usually translated as “oneness” or “unity”, and which

forms the foundation and very essence of the Islamic Weltanschauung. Naturally, the oneness

of God is the most fundamental assertion and implication of tawhid and the Islamic religion

more generally. However, tawhid also represents the “vertical” dimension of human life in

Islam, whereby guidance (hidayah) to the right course of action in every human activity is

seen as coming ultimately from one single and eternal source, namely God (Naqvi, 1994). As



a result, the domain of business is, like every other human activity, guided by Islamic

teaching.

2.2.2 The role of Islamic mannerisms (adab)

As noted earlier, all human actions must, according to the principle of tawhid, be conducted

within the framework of the religion. This includes the way Muslims communicate with

others. In this regard, Muslims are guided by adab, which refers to etiquette and decorum. In

Islamic societies, one who has adab is seen as being cultured, well-mannered, sophisticated,

and sincerely conscious of his or her responsibilities towards God (Al-Attas, 1997; Murata &

Chittick, 2006). It is perhaps the last of these factors (sincere consciousness of one’s

responsibilities towards God) that is both most significant and also most distinctive of Islamic

mannerisms. Those who meet this particular criterion will strive to ensure that their conduct

in all social activities is consistent with Islamic values. Therefore, they will familiarise

themselves with scholars of their tradition who have espoused guidelines for just about every

human action, from raising children and running a business to appropriate etiquette for eating

and hosting guests in one’s home.

A particular branch of adab, adab al-muhadatha (the manners of conversing), is

particularly relevant here (Alon & Brett, 2007). From the Islamic perspective, our use of body

and, in particular, tongue has profound implications for our souls (Nasr, 2007). A number of

traditional Islamic scholars, including Imam Al-Ghazali (d. 1111) and Imam Birgivi (d. 1573),

for example, stressed the significance of the tongue, reminding Muslims that speech is a

unique gift from God to the human being (see also the Quran, verses 55:1-41), with their

welfare depending ultimately on the use of this gift (Al-Ghazali, 1995; Imam Birgivi, 2005).

As the Quran (49:13) states (in translation), “The noblest of you, in the sight of Allah, is the

best in conduct”. Therefore, as part of their efforts to please God, observant Muslims place

great emphasis on speech that reflects courtesy, kindness, and compassion.



In line with adab and the principle of tawhid, Muslims typically begin an activity by

invoking the formula of consecration, the Basmalah (Bismillahi-r-Rahmani-r-Rahim—in the

name of God, Most Compassionate, Most Merciful). Often, depending on the magnitude of

the event, an extended version of this formula may be cited, which can prolong the

proceedings. As Alon & Brett (2007) have suggested, this may create confusion and agitation

among many negotiators coming from certain Western cultures, where time is often seen as a

scarce resource that should not be used up with reference to matters that, in their eyes, may be

considered to be unrelated to the negotiation. Of course, for the Muslim who understands and

is committed to the doctrine of tawhid, this dichotomy between a “secular” and “religious”

realm is simply non-existent and therefore there is, for him/her, no disconnect between the

negotiation and religious matters.

The Quran alludes to negotiation etiquette in several verses, each time emphasising

the importance of discussing matters in a “good way2”. For instance, Muslims are advised to

reason with others “in the better way” (16:125), and to not argue “unless it be in (a way) that

is better” (29:46). “Speak words straight to the point,” instructs the Quran (33:70), thus

commanding Muslims to also be truthful and direct during negotiation (Rice, 1999). In

essence, Islamic principles of communication encourage kindness, politeness, honesty, clarity,

two-way communication, while simultaneously discouraging backbiting, ridicule, vanity,

negative emotions (e.g. anger), secret talk in small groups, frequent interruption, manipulation,

and being two-faced (Ahmad, 2006; Imam Birgivi, 2005).

Interestingly, adab is also, from the Islamic perspective, inseparable from “justice”

(‘adl), which, for Muslims, means “to put things in their proper places”. The concept of

justice represents one of the most significant principles in Islam. In fact, among the divine

names (attributes) of God in the Islamic tradition are al-’Adil, al-’Adl, al-Muqsit, and al-

Hakam, meaning the Just as well as Justice Itself, the Equitable, and the Bringer of Justice



(Nasr, 2002). Al Attas (1985: 99), for example, writes that “Loss of adab implies loss of

justice.” Historically, Muslims have understood justice as incorporating not just corrective

and regulatory justice but also one’s character and personality (Kamali, 2007). In other words,

adab and justice are seen as inseparable and complementary. In the context of business

negotiation, one might highlight the importance of justice by pointing to the Prophet

Muhammad’s proclamations that if buyers and sellers “conceal and tell lies, the blessing of

their transaction shall be obliterated” and that “The truthful, honest merchant is with the

prophets” (Ali, 2005, 2011). Statements such as these compel observant Muslims to disclose

any product or service defects of which they are aware and to ensure exactness in the

promised product’s specifications (Graafland, Mazereeuw, and Yahia, 2006; Rice, 1999.).

2.2.3 Relations between men and women

Prohibitions also exist in terms of the relationship between unrelated/unmarried men and

women in Islam. Generally speaking, where negotiations involve both men and women,

conservative Muslims may prefer to limit the negotiation to office settings or a formal meal at

most. Socialising in bars is unlikely to be very popular due to the Islamic position on

consuming alcohol, but even in cafes, for example, some might feel uncomfortable if they are

expected to mingle informally with members of the opposite sex. Richardson (2014), for

instance, reported one incident of a female Muslim engaged in a negotiation in South Korea.

As a gesture of hospitality, her local counterparts brought her to a karaoke bar—a relatively

common business practice in the country (Cha, 2012)—which made her feel somewhat ill at

ease. In fact, the incident was regarded as the turning point in discussions between the two

firms, leading ultimately to the failure to reach any agreement. To be sure, there is some

variation across the Muslim world with respect to the role of women in public life. For

example, the current Prime Minister of Bangladesh is female, but in Saudi Arabia, women

face prohibitions when it comes to the every-day activity of driving a car. Nevertheless,



gender differences are a hugely important feature of human life as seen from the Islamic

perspective (Nasr, 1980) and cross-gender relationships among more conservative Muslims

tend to abide by certain rules.

In summary, Islam serves as the supreme ethical guide for observant Muslims, even in

today’s fast-modernising and increasingly secular world. Its emphasis on the principle of

tawhid means that all human activity should always be connected to the religion, with

business transactions being no exception. In this study, I seek to explore the ways in which

observant Muslims are influenced by their religious tradition during IB negotiation.

3. METHODOLOGY

Given the exploratory nature of this work-in-progress study, I adopted a qualitative

methodological approach (Daniels & Cannice, 2004). Although IB, like many other fields of

management, has been dominated by quantitative research (Jack & Westwood, 2006;

Sinkovics, Penz, & Ghauri, 2008), IB scholars have not been silent when it comes to

championing the merits of qualitative methods (Birkinshaw, Brannen, & Tung, 2011; Doz,

2011). In particular, it is argued that qualitative research is suited to exploring contextual

phenomena in which reality is considered subjective in nature (Bluhm, Harman, Lee, &

Mitchell, 2011; Morgan & Smircich, 1980), which is the case with the present study.

Furthermore, since religion is often a somewhat delicate subject, I felt that respondents

may not have been forthcoming in responding to a survey questionnaire with minimal, if any,

contact with the researcher. With face-to-face interviews however, I have been able to

develop a deeper rapport with the respondents, thus enhancing trust and, ultimately,

generating more accurate responses (Daniels & Cannice, 2004).

Semi-structured interviews have thus far been conducted with nine Malaysian Muslim

business managers, who were identified based on a combination of purposive and snowball



sampling. The criteria for selecting managers included their religiosity and their experience in

IB negotiations. Small and medium-sized enterprises (SMEs) were preferred to larger

organisations because, in Malaysia, SMEs tend to be less ethnically/religiously diverse. That

is, they are usually either entirely Malay (Muslim), Chinese, or Indian. Since the study’s

scope is centred on the experience of Muslim negotiators, firms that have non-Muslim

workers and negotiators were excluded. Respondents include chief executive officers (CEOs)

and senior managers in private companies. All but one of the respondents has more than a

decade’s worth of experience in IB negotiations—the remaining respondent is relatively

young and first started negotiating internationally five years ago. In all cases, respondents

have had experience in negotiating with non-Muslims and with other Muslims—‘inter-

religious’ and ‘intra-religious’ negotiations, so to speak—in countries such as the UK, US,

Australia, Japan, Singapore, Indonesia, and much of the Arab world, among others. This

enabled the respondents to discuss their negotiation experience with non-Muslims and with

fellow Muslims.

Interview questions were inspired from existing literature, including Khakhar &

Rammal (2013) and Brett & Gelfand (2005). In particular, the latter’s cultural analysis of

negotiation theory, which describes how people, including from non-Western cultures, cope

with problems that arise during negotiations, served as a valuable source of inspiration for the

interview guide. Interview questions also drew on Ghauri’s (2003) framework for IB

negotiations, which covers, among other things, background factors and cultural factors (e.g.

perception of time, pattern of communication), and which describes the negotiation process in

a holistic manner.

The structure of the interviews was as follows. Each interview began with general

questions concerning the respondent’s educational and professional backgrounds. The

respondents were then asked about their experience in IB negotiations, before we discussed



their religious beliefs, including what being Muslim meant to them, and how they balance

their professional careers with their religious beliefs. Given that the present study seeks to

understand the Islamic perspective on business negotiations, it was imperative that

respondents were practicing Muslims. In order ensure this, during my interviews, I drew on

various studies that attempt to capture or measure religiosity (e.g. Lewis & Kashyap 2013;

Mazereeuw-van der Duijn Schouten, Graafland, & Kaptein, 2014; Tiliouine, Cummins, &

Davern, 2009). ‘Religiosity’ basically refers to the importance of religion in one’s life

(Tiliouine et al., 2009) and is a rather holistic concept, covering more than just ‘what one

believes’. (Mazereeuw-van der Duijn et al. 2014). Therefore, questions concerned not just

cognitive aspects of religiosity (e.g. “Do you believe that your actions at work will influence

your eternal destiny?”) but also intrinsic (e.g. “Do you enjoy reading about your religion?”),

extrinsic (e.g. “Why do you go to the mosque?”), and behavioural (e.g. “How often do you

attend talks/events on Islam?”) aspects of religiosity (Mazereeuw-van der Duijn et al., 2014).

In line with Brett & Gelfand (2005), the interviews also covered key attributes of cross-

cultural business negotiations: judgment and concession-making, negotiator motivations,

attributions, communication style, approach to confrontation, and how the religious teachings

of the respondents influenced these attributes.

Data analysis was undertaken simultaneously with data collection. More precisely,

rather than waiting for all interviews to be completed before commencing with the

transcription process, I transcribed each interview shortly after it took place. This approach

enables the researcher to review data in the light of his/her research questions and to revise

his/her approach for subsequent interviews (Silverman, 2011, 2013). Moreover, immediately

after each interview, I noted down various field notes in the research setting based on my

observation of the respondent’s surroundings which were not captured in the interview

(Daniels & Cannice, 2004; Miles, Huberman, & Saldana, 2014), but which appeared to be



meaningful for the study (Bazeley, 2013). For instance, my field notes would describe the

extent to which the respondent’s office decorations were ‘Islamic’ in nature (e.g. Quranic

calligraphy, Islamic art), how the respondent dressed (e.g. if she was a woman, was she

covering her hair?), and the passion with which he/she discussed religious matters. This was

important in helping to better understand the position and significance of Islam in the

respondent’s life.

The interviews conducted so far all lasted between 80 and 100 minutes. The interview

guide developed from the literature review discussed earlier helped in identifying key themes

for analysis, although these were complemented by additional themes that arose during the

interviews (Rivas, 2012; Strauss, 1987). Each theme was then linked to a code (category)

before more passages on the same theme were identified. Coding is simply a process that

makes the data more manageable for researchers by dividing them up into themes or patterns,

thus enabling them to retrieve and compare data marked with the same code (Gibbs, 2007;

Grbich, 2013; Seale, 2012).

4. FINDINGS

4.1 Religiosity of respondents

Based on their responses to the interview questions discussed above, all respondents

demonstrated a high degree of religiosity. For example, all prayed regularly, all the male

respondents attended Friday prayers, and so on. Two of the respondents even served as

religious teachers in their local community, delivering regular talks in the evenings and at

weekends. In addition to the interviews, I also used my observations of the respondents’

office environments, as well as their usage of Islamic terms (e.g. Insha’Allah (if God wills),

alhamdulillah (all praise is due to God), etc.) during the interviews to support their religiosity

claims. With no exception, all respondents’ offices contained Islamic-themed ‘art’, including



Quranic calligraphy, pictures of Mecca’s holy sites, and copies of the Quran placed high on

their shelves as a mark of respect. Some of the offices I visited also had special adhan (call to

prayer) clocks on the walls that alert those present to the beginning of the time for prayer. In

all cases, respondents also regularly inserted Islamic expressions, such as those highlighted

above, in their sentences. Furthermore, most of the male respondents had grown some form of

facial hair (in accordance with the Prophetic tradition), while all female respondents donned

headscarves and modest (loose-fitting, full-length) clothing. The female respondents I

interviewed also took additional steps, such as leaving their office door slightly ajar during

our interview or requesting the interview take place in a public space (e.g. library), given that

close proximity between unrelated/unmarried men and women in a private space is typically

discouraged in Islamic societies. In summary, all respondents were relatively devout Muslims

who were familiar with the teachings of their religion.

4.2 Spiritual significance of business negotiations

All respondents here concurred that what they do in their business life is guided and inspired

by their religion. One respondent even pointed out that one of his future ambitions is to

establish a “Muslim identity” for his firm, including basing the company’s logo on Islamic art.

Another respondent had already achieved this, giving his company an Arabic name that has

religious connotations. When discussing their approach to negotiations, the respondents were

unanimous in their insistence that, for them, business negotiations were not cut off from their

religious beliefs. According to one respondent:

Everything I do at work is a form of ibadah [worship], including negotiations. Even though

our business negotiations involve matters that aren’t really explicitly religious—price, terms

& conditions, and so on—I still try to base the way I negotiate, my objectives, my manners,



everything, on what my religion teaches me. I may not always succeed at this, but it’s always

my intention to please God in all my actions.

Another respondent pointed out that a Muslim should never lose sight of the life beyond this

world. In other words, what one earns in this life, and how he/she earns it, has implications

for one’s soul in the hereafter:

What is the point of negotiations? To improve what we already have, right? In business, this

usually means improving our revenues in some way. Now, as a Muslim, the money I take

home at the end of the day must be acceptable to God; it must be halal [permissible]. If,

through my negotiations, I have made money in non-halal ways, this money might help me in

this life, but what about the next life? I will be questioned on the Day of Judgment how I made

each and every cent that I made in my work. How could I face God if I had knowingly made

money in haram [prohibited] ways?...I’d rather make a little honest money than a lot of

haram money!

4.3 Influence of Islam on approach to negotiation

For observant Muslims, religion occupies a central place in all domains of life, with business

negotiations being no exception. As one interviewee put it, “When I enter a negotiation, I do

not leave my religion at the door”. Since this is the case, it is important to understand the

ways in which adherents of Islam are inspired and guided by their religion during business

negotiations.

4.3.1 Adab

In a sense, the Islamic perspective on negotiations can be summed up in one rather broad term:

adab. As noted earlier, adab usually refers to manners and customs, but also encompasses



consciousness of one’s responsibilities towards God. The respondents here were all well

acquainted with the concept and discussed freely how they understood adab, and the role

adab played in their approach to negotiations. One theme that was common across all

interviews was the significance attached to polite language. Certainly, all cultures promote the

use of polite language, but what is quite unique from the Islamic perspective is its ‘divine

connotations’, as opposed to just being a set of unwritten ‘secular’ social rules on how to

communicate. According to one female respondent, Muslims should avoid the use of strong

language when negotiating:

One of my counterparts told me that one of the reasons they want to meet and do business

with me regularly is because I never use harsh words. This is a very important part of Islamic

adab. We are taught to describe things until our counterparts understand, without using

strong language. We have to try and explain gently and politely.

She added that cross-cultural negotiations also offer an opportunity for her and other Muslims

to “set the record the straight” and show that Muslims are not aggressive, uncompromising

people, which, she believes, is the way they are often portrayed in popular media:

I think many people around the world today unfortunately see Muslims as hostile people. So I

also see international [business] negotiations as a chance to present a more peaceful picture

of my religion…I see my role as being almost like an ambassador for my religion. So there’s

extra incentive for me to ensure I negotiate in line with adab.



When asked why Muslims placed such emphasis on polite language, another respondent

explained that Muslims are often taught in school to recite the Quran in a very soft, even

melodic tone, which may have wider consequences on their general communicative pattern:

In religious classes at school, when we learn to recite the Quran, we are instructed to do so in

a very soothing way. We don’t simply read out the verses as if we are reading a regular

book…To me, language is sacred, and we should always do it justice when we use it…I guess

this value got instilled in my mind and I never use strong language, even when negotiations

are getting rough. Even when someone else swears or curses, I feel very uncomfortable!

Several respondents also saw relations between men and women as a core part of adab.

For some of the interviewees, however, this was one of the most challenging aspects of IB

negotiations, as it sometimes placed them in an uncomfortable situation. In other cultures,

something like shaking hands with someone of the opposite gender may be a relatively trivial

act, but for some religious Muslims, even the slightest of physical contact can make them

somewhat uneasy. Interpretations vary though—for example, some of the respondents did not

regard this type of action to be of much consequence, while others felt more uncomfortable.

For example, one male respondent noted that he would happily shake a female counterpart’s

hand “because it is not really a sexual gesture, just a business greeting”, while another

described how he “greet[s] them warmly, but from a distance, so as to avoid any awkward

misunderstandings”, but that this usually “makes things a bit difficult [because] they think I

don’t like them”. One of the female respondents revealed that she even wears skin-tight

gloves when negotiating abroad so as to avoid any direct physical contact from a cross-gender

handshake. As noted by one of the interviewees, Islamic adab requires one to show respect to



others and avoid causing them embarrassment. Therefore, if a woman offers her hand, he will

accept the gesture:

It [shaking hands with someone of the opposite gender] is not something Islam encourages,

but if a woman offers her hand, I will not decline because I don’t want to cause her

embarrassment. Our religion encourages us to respect other people, and shaking hands is one

way of doing this, even though, in Islam, this should only be between people of the same

gender. But since they are not Muslim, we cannot expect them to know every detail of our

religion.

Aside from shaking hands, some of the respondents discussed other ‘cross-gender’

challenges that sometimes emerge during negotiations, and how they respond. For example,

in some cases, negotiators often treat their visitors to dinner or take them to bars in their cities.

For Muslims who adhere to strict halal diets with no alcohol, this can sometimes cause

uneasiness, and, as one of the interviewees acknowledges, can affect relations between parties:

In some countries, it is customary to socialise with your business partners, which is fine. But

this sometimes takes place at night in bars, where alcohol is served…When invited, I usually

politely decline the offer, because I do not believe it is right for me to be in such an

environment, especially as a woman…Sometimes, you can see that the host is a little bit

disappointed or confused by this, and yes, it does make it difficult to break this ice, as it were,

and gain the other party’s trust, which can be very important when doing business.



Other aspects of adab that were raised included the importance attached to formal

dress, beginning negotiations with a brief prayer, and ensuring one’s visitors are provided

nice food and beverages.

4.4 Intra- versus inter-religious negotiations

Interestingly, most of the respondents here admitted to adjusting their negotiation style

according to the religion of their counterparts. For example, all the interviewees explained

that, when negotiating with Muslims, they will usually initiate proceedings with a prayer “in

order to remind ourselves that what we do and how we do it must be in line with our religion”,

as one respondent put it. However, when negotiating with non-Muslims, most of the

respondents actually admitted to omitting the prayer. According to one interviewee:

We try to make them [non-Muslim negotiators] feel comfortable. Since our prayers are

usually uttered in Arabic, we don’t want them sitting there not understanding us. Also, I don’t

want them thinking we are trying to ‘preach’ to them or something, even though the prayer is

usually just a simple supplication or something. If they’re Muslim, then they probably

wouldn’t mind, but for non-Muslims, I worry they may get the wrong idea, so I just say “Good

morning” or something like that.

They also tended to tone down their use of Islamic terms like ‘insha’Allah’, ‘alhamdulillah’,

and so on because “it feels a bit weird to use these expressions among people who don’t

understand them”, as one respondent elucidated. Some of the respondents also admitted to

resorting to greater emotional appeals when counterparts were Muslim. As one interviewee

explains:



Islam places a lot of importance on tawhid, unity. The Muslim ummah needs to be more

united. So, sometimes when negotiations are getting a bit rough, I remind my [Muslim]

counterpart of this, and how Muslim societies are lagging behind the more advanced

countries…I also tell them “if you work with me on this, part of what I get goes to zakat

[obligatory income tax for Muslims that goes to charity], but non-Muslims don’t have this

obligation, so it may not go to charity”…So, the importance of unity in our religion is

something that can help unite us during negotiations.

5. DISCUSSION AND CONCLUSION

Conducting negotiations across countries is a common feature of IB. However, failure to

respond to local cultures often impedes successful outcomes. In order to improve their

chances of success, IB negotiators need to develop a better understanding of the prevailing

local value systems and worldviews in their host markets. Although the literature on cross-

cultural negotiations is fairly extensive, scholars have tended to overlook the role and

influence of religion. In several modern societies, this is understandable, given the marginal

role occupied by religion in public life, including in the domain of business. However, in

some parts of the world, religion continues to serve as a significant reference point for public

affairs, which is the case in much of the Islamic world (hence the use of the term ‘Islamic

world’). In order to better understand how religion can influence negotiation style, the

present study focused on observant Muslim negotiators, and how their religion guides them

during negotiations. As the findings suggest, in Muslim societies, religious values are often

central to the way observant Muslims approach negotiations. For them, business (and by

extension, business negotiations) is inseparable from religion. As they see it, all their actions

in this life have implications for their wellbeing in the next life. Therefore, they are careful to



ensure that their approach to business activities in general, and negotiations in particular, is

consistent with their religious beliefs.

The study has important managerial implications. As the Islamic world takes on more

importance in global business, IB negotiators will need to develop a better understanding of

Muslim-majority markets. When negotiating with pious Muslims, managers should

familiarise themselves with basic rulings on food, gender relations, prayer times, and so on.

For example, rather than inviting their Muslim counterparts to a bar, negotiators could seek

out restaurants that serve halal food. Also, when one’s counterpart is female, it may help to

include females on one’s team and to allow them a greater role, particularly if any socialising

is involved. Familiarity with and understanding of central Islamic beliefs such as tawhid

would also, I believe, go a long way to understanding the worldview and values of one’s

Muslim counterparts.

Conclusions and implications arising from this study should be viewed in light of two

important limitations. Firstly, the data are limited to managers based in northern Malaysia.

The Muslim world is varied and comprises such diverse countries as Senegal, Yemen,

Kazakhstan, and Indonesia, where languages, customs, and traditions are far from ubiquitous.

This is further complicated by the fact that there are two main denominations of Islam:

Sunnism, which accounts for around 85 to 90 percent of Muslims worldwide, and Shiism,

which is concentrated in Iran, Iraq, Azerbaijan, as well as parts of South Asia and is followed

by the remaining 10 to 15 percent of Muslims. Malaysia, which served as the context of the

present study, belongs to the Sunni world, and all respondents identified with this particular

denomination. Naturally, the diversity of the Muslim world, coupled with the Sunni-Shia

schism, restricts the generalizability of the findings.

Secondly, religiosity—and interpretations of religion—vary considerably across

individuals. While many Muslims around the world observe their daily prayers and other



rituals, others may only observe certain rites or none at all. Therefore, not all Muslims would

approach negotiations the way the respondents here do. For those of a more secular leaning,

the issues of pre-negotiation prayers and socialising in bars are unlikely to generate as much

concern or attention as they do for more conservative Muslims. However, by selecting only

‘religious’ Muslims, I believe this weakness has been somewhat mitigated. Given that the

study’s focus is on the influence of Islam, it was important to draw on the experience of

Muslims who adhere closely to the religion, rather than those for whom religion is largely a

‘private’ affair that has no place in public activities like business negotiations.



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1 The Quran is Islam’s sacred text, representing a collection of the divine revelations the Prophet Muhammad is

believed to have received during his lifetime. It comprises 114 chapters of varying lengths. In this paper,

references Quranic statements include both the chapter and particular verse within that chapter. Therefore,

“Quran (2:15)” refers to the fifteenth verse in the second chapter.

2 Islam places considerable emphasis on ihsan (‘to do what is beautiful’). Since human beings should strive to

follow the divine model, and because God is seen as being beautiful, all activity should thus be performed

‘beautifully.’ For an in-depth discussion of the place of ihsan in Islamic life, the reader is encouraged to consult

Murata & Chittick’s The Vision of Islam (2006: 265-312).



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