An experimental test of negotiation strategy effects on knowledge sharing intentions in buyer-supplier relationships
Negotiations are an essential element of buyer-supplier relationships that form the foundation of modern supply chains. Research has identified two common types of negotiation strategies that are used in buyer-supplier negotiations. A win-win negotiation strategy attempts to maximize mutual gain while a win-lose strategy focuses on obtaining a disproportionate share of benefits. This study investigates the relational costs of adopting a negotiation strategy in terms of adverse effects on knowledge sharing intentions in interdependent buyer-supplier relationships. A between-subjects scenario-based experiment is used to test hypotheses developed from applicable literature and social exchange theory. Results of the experiment indicate that employing a win-lose negotiation strategy may decrease future intentions toward information exchange, communication quality and operational knowledge transfer between buyers and suppliers. The findings inform managerial aspects of supply chain relationship management, extend the negotiation literature to consider longer-term effects of common negotiation strategies and provide insights into social exchange theory. © 2013 Institute for Supply Management, Inc.