The Effects of Interaction Goals on Negotiation Tactics and Outcomes: A Dyad-Level Analysis Across Two Cultures

Abstract

This study investigates how negotiators’ interaction goals influence their own and their counterparts’ negotiation tactics and outcomes across two cultures using a simulated employment contract negotiation. Results show that when negotiators placed greater importance on competitive goals, they used more distributive persuasion and fewer priority information exchange tactics, which reduced their counterparts’ profit; negotiators’ competitive goals also caused their counterparts to use fewer priority information exchange tactics, which in turn hurt their own profit. Dyad members’ competitive goals have an indirect, negative impact on joint profit. In addition, Chinese negotiators placed greater importance on competitive goals and used more distributive and fewer integrative tactics than Americans, but the associations between goals and tactics did not differ across cultures. Nevertheless, members of the two cultures took different paths to improve joint profit; as a result, Chinese dyads achieved no less joint profit than American dyads. The study sheds light on culture’s effect on the interactive processes by which goals impact negotiation performance.