Two decades of business negotiation research: an overview and suggestions for future studies

Abstract

Purpose This paper aims to present a review of articles on business negotiation published between 1995 and 2015. Design/methodology/approach This literature review is based on 490 articles on business negotiation. Findings When analyzing the conceptual underpinnings of this field, two paradigms emerge as dominant. The most prominent paradigm is a cognitive, psychological approach, typically relying on experiments and statistical testing of findings. The second dominating paradigm is a behavioral one, largely concerned with mathematical modeling and game-theoretical models. Practical implications Besides offering a description of the characteristics adhered to the business negotiation field, this paper will also suggest recommendations for further research and specify areas in which the research field needs further conceptual and empirical development. Originality/value This literature review serves to be the first representation of the characteristics adhered to the budding research field of business negotiation.

Alternatives vs. Time – Measuring the Force of Distinct Sources of Bargaining Power

“…This is confirmed by Agndal et al [2] who list only six (1.2%) relevant studies in a meta-analysis of 490 studies on business negotiations. Moreover, the studies do not shed light on the drivers of bargaining power but rather on the effects of having power [2]. Unfortunately, there is not even a reliable framework to measure negotiation power or compare the force of different sources of power.…”

“…The fact that only the study of Moore [52] simultaneously imposed time costs and deadlines is especially troublesome. The lack of systematic research is also documented by the study of Agndal et al [2] which shows that only nine out of 490 studies involved time pressure in negotiation. The research gap is widened when one considers the limited use of professionals and typical buyer-seller negotiation settings.…”

“…Still, they do not answer the question as to whether and to what extent alternatives are a main driver of bargaining power. Additionally, in the review of Agndal et al [2] alternatives are neither directly related to power in negotiation nor covered in a separate chapter, which indicates that little attention is paid to alternatives as a source of bargaining power.…”

“…Still beside the most prominent source of negotiation power, alternatives, limited attention has been paid to other power sources and their interaction. That said, there is still a lack of systematic research into the drivers of bargaining power, which is reflected by Agndal et al [2] who state: "A few studies address the issue of power […]." [2, p. 11].…”

“…The obvious appeal of this concept has resulted in a certain lack of empirical studies that examine power drivers beyond the BATNA concept, thereby hampering the assessment of the strength of individual power drivers [42,46]. This is confirmed by Agndal et al [2] who list only six (1.2%) relevant studies in a meta-analysis of 490 studies on business negotiations. Moreover, the studies do not shed light on the drivers of bargaining power but rather on the effects of having power [2].…”