Goal orientation and negotiation strategies: an empirical analysis

Abstract

PurposeThis study aims to examine how negotiators’ goal orientations may affect their negotiation strategy and consequently the negotiation outcomes.Design/methodology/approachUsing cross-sectional data collected from a Fortune 500 Global firm based in France, this study empirically examines how goal orientations of negotiators may affect their value creation (win-win) and value-claiming (win-lose) negotiation behavior reflecting their desired outcome in a given sales negotiation. In so doing, this study proposes a conceptual model and tests a number of hypotheses using partial least squares structural equation modeling.FindingsThis study shows that learning and performance goal orientations (PGO) are indeed related with two commonly used negotiation strategies: win-win (integrative) and win-lose strategies (distributive) strategies, respectively. The results indicate that while the learning orientation has a positive relationship with a win-win strategy and a negative relationship with a win-lose negotiation strategy, just the opposite is true with the PGO, which is positively related to win-lose strategy and negatively related to win-win strategy.Originality/valueTo the best of the authors’ knowledge, this research represents one of the first attempts to connect goal orientations with negotiations strategies to achieve desired negotiation outcome using data from salespeople with negotiation experience.