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To what extent do monetary incentives influence the negotiation behavior in business- to-business (B2B) settings?

Bala, Alexandru-Eugen (2019) To what extent do monetary incentives influence the negotiation behavior in business- to-business (B2B) settings?

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Abstract:This paper aims at a better understanding of the negotiation between buyers and sellers in business-to-business settings. More precisely, this research puts a strong emphasis on the extent to which the variable payment affects negotiation behavior of agents involved in the negotiation process. Furthermore, as the relationship between the two variables did not receive too much attention in the scientific literature, this research contributes to further understanding between the extent to which negotiation behavior of agents is affected by monetary incentives in business-to- business settings. Qualitative data were collected through interviews with various principals and agents from different European countries, and then analyzed. The results suggest that the negotiation behavior of agents is indeed affected by the variable payment to some extent. However, there are limitations that come up with this study, as the sample size is very small, and the respondents were agents and principals from European countries only. This research tries to fill the gap in the scientific literature by answering the research question. The practical implications consist in the attempt of getting better deals for the company by providing monetary incentives to influence negotiation behavior when necessary. Furthermore, future research should consider the process of negotiation on a much larger scale, as more cultures and companies operating in different parts of the world should be analyzed. The originality of this research lies in its consideration regarding the use of monetary incentives and the effect they have on negotiation behavior in B2B settings.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Keywords:Negotiation process, Buyer-seller negotiations, Negotiation behavior, Monetary incentives, Principal-agent relationship, Organizational performance, Business-to-business settings
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