Explaining the gender gap in negotiation performance: Social network ties outweigh internal barriers

Abstract

AbstractGender disparities in negotiation outcomes contribute to inequality in the workplace and beyond. Explanations of gender gaps in negotiation often focus on internal barriers women face as a consequence of contending with stigma in the workplace and other historically male‐dominated environments, such as stereotype threat and apprehension about negotiating. However, stigma is also associated with relational consequences that may influence success in negotiations. This research compared internal and relational mechanisms for gender disparities in negotiation performance. Seventy‐seven MBA executives reported their apprehension about negotiating, stereotype threat in negotiations, mindset about negotiation‐related stress, and class social networks. Participants were then randomly paired to complete a series of one‐on‐one negotiations based on real‐world scenarios. Overall, men outperformed women in negotiations. Significant gender differences emerged in stereotype threat, stress mindset, and social network centrality. However, only network centrality—specifically number and strength of ties—significantly mediated the relationship between gender and negotiation performance. Position in informal social networks may play an important role in negotiation outcomes, particularly in a shared social environment like the workplace. Although efforts to explain the gender gap in negotiation performance often center internal psychological mechanisms, this research suggests that relational explanations, such as disparities in social networks, merit further attention. Limitations and recommendations for future research and policy are discussed.