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The influence of negotiation behavior on supplier satisfaction: a case study

Jazbek, F.T. (2019) The influence of negotiation behavior on supplier satisfaction: a case study.

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Abstract:In the current business environment, suppliers became increasingly important due to their scarcity. It is therefore also important to keep a supplier’s satisfaction in mind. In buyer-supplier relationships negotiations often take place where buyers and suppliers both negotiate to get the best deal for themselves in a win-lose situation, showing distributive negotiation behavior, or in a win-win situation, showing integrative negotiation behavior. In this research, the main question will be how these negotiation behaviors affect supplier satisfaction, with distributive negotiation behavior arguably affecting it negatively and integrative negotiation behavior positively. Qualitative data was collected from five firms in the Netherlands, operating on different levels in the market and in different sectors and analyzed using case-oriented research and comparative analysis. Literature has shown integrative behavior to lead to more satisfactory outcomes and distributive to less, while a factor that increases a supplier’s satisfaction is relational behavior and showing openness. Findings have shown that integrative behavior to affect a supplier’s satisfaction positively, however, distributive behavior does not seem to affect it negatively which reinforces recent studies which showed buyers to prefer distributive and competitive negotiation styles. Limitations were small sample size and overall general findings, where future studies should focus more per sector or more on one of the behaviors. Findings also reinforce the negotiation continuum where distributive and integrative negotiation is interplayed.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/78438
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