Abstract
Prior studies on buyer-supplier negotiations show that refined accounting information can enhance negotiation processes and outcomes. We extend these studies by considering the influence of payoff uncertainty, which is commonly present in negotiations. Payoff uncertainty can increase friction between negotiators when it induces them to take different reference points, exacerbating the level of conflict. We theorize that refined accounting information, even when unrelated to the source of uncertainty, can help to limit the adversarial effects of payoff uncertainty on negotiation behavior and outcomes by enabling negotiators to identify mutually beneficial tradeoffs. We conduct an experiment in which 89 dyads of buyers and suppliers participate to test our expectations. Results show that payoff uncertainty reduces negotiators’ use of integrative tactics relative to distributive tactics, which in turn negatively influences joint profit. Refined accounting information, however, weakens the negative impact of payoff uncertainty on behavior, mitigating the negative impact on joint profit.
| Language | English |
|---|---|
| Pages | 20-42 |
| Number of pages | 23 |
| Journal | Management Accounting Research |
| Volume | 41 |
| Issue number | December |
| DOIs | |
| Publication status | Published - 2018 |
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Keywords
- Accounting information
- Buyer-supplier negotiations
- Negotiation outcomes
- Negotiation tactics
- Payoff uncertainty
Cite this
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Your gain my pain? The effects of accounting information in uncertain negotiations. / Essa, Samy A.G.; Dekker, Henri C.; Groot, Tom L.C.M.
In: Management Accounting Research, Vol. 41, No. December, 2018, p. 20-42.Research output: Contribution to Journal › Article › Academic › peer-review
TY - JOUR
T1 - Your gain my pain? The effects of accounting information in uncertain negotiations
AU - Essa, Samy A.G.
AU - Dekker, Henri C.
AU - Groot, Tom L.C.M.
PY - 2018
Y1 - 2018
N2 - Prior studies on buyer-supplier negotiations show that refined accounting information can enhance negotiation processes and outcomes. We extend these studies by considering the influence of payoff uncertainty, which is commonly present in negotiations. Payoff uncertainty can increase friction between negotiators when it induces them to take different reference points, exacerbating the level of conflict. We theorize that refined accounting information, even when unrelated to the source of uncertainty, can help to limit the adversarial effects of payoff uncertainty on negotiation behavior and outcomes by enabling negotiators to identify mutually beneficial tradeoffs. We conduct an experiment in which 89 dyads of buyers and suppliers participate to test our expectations. Results show that payoff uncertainty reduces negotiators’ use of integrative tactics relative to distributive tactics, which in turn negatively influences joint profit. Refined accounting information, however, weakens the negative impact of payoff uncertainty on behavior, mitigating the negative impact on joint profit.
AB - Prior studies on buyer-supplier negotiations show that refined accounting information can enhance negotiation processes and outcomes. We extend these studies by considering the influence of payoff uncertainty, which is commonly present in negotiations. Payoff uncertainty can increase friction between negotiators when it induces them to take different reference points, exacerbating the level of conflict. We theorize that refined accounting information, even when unrelated to the source of uncertainty, can help to limit the adversarial effects of payoff uncertainty on negotiation behavior and outcomes by enabling negotiators to identify mutually beneficial tradeoffs. We conduct an experiment in which 89 dyads of buyers and suppliers participate to test our expectations. Results show that payoff uncertainty reduces negotiators’ use of integrative tactics relative to distributive tactics, which in turn negatively influences joint profit. Refined accounting information, however, weakens the negative impact of payoff uncertainty on behavior, mitigating the negative impact on joint profit.
KW - Accounting information
KW - Buyer-supplier negotiations
KW - Negotiation outcomes
KW - Negotiation tactics
KW - Payoff uncertainty
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UR - http://www.scopus.com/inward/citedby.url?scp=85045455176&partnerID=8YFLogxK
U2 - 10.1016/j.mar.2018.02.002
DO - 10.1016/j.mar.2018.02.002
M3 - Article
VL - 41
SP - 20
EP - 42
JO - Management Accounting Research
T2 - Management Accounting Research
JF - Management Accounting Research
SN - 1044-5005
IS - December
ER -