Application of Equity Sensitivity Theory to Problem-Solving Approaches in Construction Dispute Negotiation

Abstract

This study applies equity sensitivity theory to investigate how the sensitivity of negotiators to perceived equity or inequity varies with their perception of the adoption of problem-solving approaches (PSAs) in negotiation in the construction industry. Drawing upon this theory, we identify three classes of negotiators: benevolents (known as “givers”), equity sensitives, and entitleds (known as “takers”). Our results suggest that most of the negotiators in our sample are entitleds. The study also provides statistical evidence that the perception of the adoption of PSAs appears to be associated with the degree of equity sensitivity of negotiators. For instance, benevolents demonstrate a significantly stronger preference for the adoption of PSAs and are thus able to obtain a higher level of negotiation satisfaction compared to the other types of negotiators. These findings are particularly relevant to the corporate managers of construction organizations, who may want to consider the inherent equity sensitivity traits of their negotiators before sending them to the negotiating table.