An Analysis of the Integration of Strategic Sourcing and Negotiation Planning

Abstract

SUMMARYInitially, strategic sourcing is defined as an integrated, seven‐step process that includes the negotiation plan. Research questions are then proposed to determine the extent to which negotiation is part of the integrated sourcing process. To answer the research questions, the strategic sourcing process and negotiation plan are evaluated in 29 cases. In 14 of the 29 cases, strategic sourcing was completed and integrated into the negotiation plan. This is just under half of the cases, which led to the general conclusion that negotiation is not well integrated with the other strategic sourcing processes. Additional findings indicated the appropriate negotiation style was used in only 64 percent of the cases, with most mismatches occurring when an integrative style was used instead of the more appropriate distributive style. Managerial and research implications of the findings are presented and discussed.