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A Behavioral Perspective on Negotiating International Alliance

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Abstract

This study examines the influence tactics of senior U.S. executives in negotiating international business alliances. The strategy literature on alliances and the behavioral literature on negotiations were incorporated into a behavioral model of alliance negotiations. Constructs identified from transaction cost, power dependence and game theories were integrated and linked to hypotheses describing negotiators' influence tactics in alliance negotiations. In examining eighty-three alliance negotiations, negotiator trust, perception of a partner firm's alternatives, conflict frame, time horizon, and cultural distance were found to affect negotiators' tactics.

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*Asha Rao is Assistant Professor of Organizational Management at the Faculty of Management, Rutgers University. Her research interests are in the areas of international negotiations and cross-cultural management.

**Stuart M. Schmidt is Professor of Human Resource Administration and Organizational Behavior at Temple University. His research interests are in issues of social influence, cross-cultural behavior and international business alliance negotiations. He has published in Administrative Science Quarterly, Human Relations and Journal of Applied Psychology.

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Rao, A., Schmidt, S. A Behavioral Perspective on Negotiating International Alliance. J Int Bus Stud 29, 665–694 (1998). https://doi.org/10.1057/palgrave.jibs.8490047

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  • DOI: https://doi.org/10.1057/palgrave.jibs.8490047

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