Supplier satisfaction and negotiation behaviour

Negotiation is a fundamental part of business relationships. Negotiation strategies will have different effects on the relation between buyer and supplier. This paper investigates the satisfaction of suppliers with their buyers in relation to their use of negotiation styles and tactics. It shows that the accommodating and collaborating negotiation styles are being used when a supplier is satisfied with the customer. It also indicates that integrative negotiation tactics are used when the supplier is satisfied with the customer. Furthermore, it was found that distributive tactics are used when suppliers are not satisfied with customers. Nevertheless, no significant relationships were found for the avoiding, competing and compromising negotiation styles.