Influence of Benevolence and Credibility on Conduct of Integrative Negotiation Behaviours

Abstract

This paper aims to determine the influence of benevolence and credibility on cooperative negotiation in the B2B markets between manufacturers and distributors using the dyadic methodology. The Principal Component Analysis (PCA) emphasizes the bi-dimensionality of trust, credibility, and benevolence by surveying 253 manufacturers and 53 distributors. Analyzing the perceptions of Producers and Retailers revealed the existence of a “perceptual convergence” between them. Moreover, the results from the dyadic analysis of the representative sample of the study showed a significant and positive impact of credibility on integrative and cooperative negotiation behavior. However, it also revealed an insignificant relation between cause and effect between benevolence and integrative and cooperative negotiation behavior. After using regression, benevolence as a dimension of trust positively impacts the integrative and cooperative negotiation behavior estimates reject. This research created a retailer and manufacturer integrative and cooperative negotiation behavior model for the B2B markets, adding to the greater knowledge of Marketing and Management. The proposed model shall aid manufacturers and retailers in effective integrative business negotiation. Retailers, who are more powerful than producers, benefit more from utilizing negotiation as a tool to exercise a better influence over producers/suppliers and, thus, reach better results. Nevertheless, the findings revealed that Trust impacts positively and directly integrative negotiation. Hence, it suggests building integrative and cooperative negotiations between producers and retailers depending on the degree of trust between them. Finally, the findings can be considered an evident aid for managers to accomplish effective negotiations better. It is worth mentioning that the results of the PCA of producers’ and retailers’ perceptions designate the insignificant relationship between benevolence and integrative negotiation.