A Critical Exploration of Bargaining in Purchasing and Supply Management: A Systematic Literature Review

Abstract

Bargaining with suppliers is a key Purchasing and Supply Management (PSM) activity but there is considerable ambiguity over what bargaining entails and the concept currently lacks a systematic treatment, despite its significant interest to PSM professionals. The literature shows that bargaining can be seen as an adversarial approach to negotiation (in contrast to more integrative/collaborative ones) and also the back-and-forth discussion over price and other variables between buying and supplying organisations to reach an agreement. In addition, many will move between fundamentally distributive and integrative approaches as the discussions play out. A systematic literature review of the Scopus, ProQuest, ScienceDirect, JSTOR and Web of Science databases was undertaken to address this gap, identifying 427 relevant journal papers that were systematically analysed. First, descriptive techniques identified the trajectory of published papers, methods, theories and their industrial context. Second, content analysis identified the key constructs and associated operational measures/variables of bargaining. Third, the constructs have then been ordered temporally and by areas of location (organisational/departmental and individual levels) to generate a model and inform a series of practice-based recommendations at different stages of the bargaining process. The findings will allow future researchers to use the constructs either directly in developing focused hypotheses to test relationships or as a basis for refinement and extension in cumulative theory building and testing. In addition, a series of focused research gaps have been identified, such as addressing the current contradictory findings of the effect of purchasing volume or organisational size on bargaining power.