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The effect of Variable Pay on negotiation Behaviour in B2B Market in Saudi Arabia

Mahayri, Mohamad (2019) The effect of Variable Pay on negotiation Behaviour in B2B Market in Saudi Arabia.

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Abstract:The concept of negotiation has been a vital tool in all business affairs dating back centuries. The concept has evolved over time and incorporated many features such as variable pay. The focus of the research is to look at how variable pay impacts negotiation behavior in Saudi Arabia, which aims to better understand the effect of variable pay on reaching agreements between companies. The research was designed in a manner that incorporated the use of semi-structured interviews and cross cases analysis to better facilitate the explorative nature of the research. The analysis has revealed three crucial factors that have an impact on the use of variable pay. These factors are as follow, leverage held by one of the parties, negotiators with integrative behavior are more willing to accept the use of variable pay. The last finding shows, that in most cases B2B negotiators value long-term relationships rather than variable pay approach. The literature review aligns with most of the findings. However, the literature focused mostly on the principal agent problem without including external factors which were shown to have a major impact on the adoption of variable pay between companies in Saudi Arabia. Our research was limited by the number of participants which can be increased in future related studies, and the time constraint. In addition, these findings advance our understandings of how variable pay can be used to enhance B2B negotiation process in Saudi Arabia.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
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