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The influence of variable pay on negotiation behaviour in B2B settings

Weidemann, J.M. (2019) The influence of variable pay on negotiation behaviour in B2B settings.

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Abstract:Variable pay and negotiation behaviour both have already received much attention in the literature. However, when looking at the relationship between these concepts, specifically how variable pay influences negotiation behaviour, specifically integrative and distributive behaviour, only limited research has been done. It is thus something of high theoretical value. As buyer-seller relationships also become more important in today’s business environment it is furthermore necessary to be aware of possible effects negotiation behaviour has on the relationship. Qualitative data for this was collected in a small case study, involving five buyers and four sellers in five different companies. Due to the small sample size of only nine interviewees, the findings cannot be generalized. The findings and previous literature indicate that there are multiple factors influencing negotiation behaviour. Variable Pay is only one of them. Although variable pay slightly increases the use of integrative tactics, no clear relationship can be observed. Distributive behaviour has no observable effect on the buyer-seller relationship but is linked towards a bad relationship. Since previous research to back these findings is limited, further research is required to generalize the findings for practical implications. The main practical implication of the findings of this study is that variable pay is not always an efficient concept in determining negotiation behaviour.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Keywords:B2B negotiations, Negotiation behaviour, Negotiation tactics, Integrative, Distributive, Variable pay, Buyer-seller relationship
Link to this item:http://purl.utwente.nl/essays/78506
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