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Full-Text Articles in Business
Why Employees Accept Lower Pay At Mission-Oriented Companies, Insiya Hussain, Marko Pitesa, Stefan Thau, Michael Schaerer
Why Employees Accept Lower Pay At Mission-Oriented Companies, Insiya Hussain, Marko Pitesa, Stefan Thau, Michael Schaerer
Research Collection Lee Kong Chian School Of Business
Today’s companies are likely to tout how their work benefits human welfare or “makes the world a better place.” Recent research suggests that this may come with a potential financial drawback for workers, as it can inhibit them from negotiating for higher pay. Over five studies, job candidates consistently reported that they worried asking for higher pay from these companies would be seen as greedy or inappropriate. This suggests they are aware of a common bias, known as motivation purity bias, where managers believe employees interested in material rewards of work (such as pay) are less motivated than those motivated …
Pay Suppression In Social Impact Contexts: How Framing Work Around The Greater Good Inhibits Job Candidate Compensation Demands, Insiya Hussain, Marko Pitesa, Stefan Thau, Michael Schaerer
Pay Suppression In Social Impact Contexts: How Framing Work Around The Greater Good Inhibits Job Candidate Compensation Demands, Insiya Hussain, Marko Pitesa, Stefan Thau, Michael Schaerer
Research Collection Lee Kong Chian School Of Business
Past research suggests that when organizations communicate the benefits of their work for human welfare—that is, use a social impact framing for work—job candidates are willing to accept lower wages because they expect the work to be personally meaningful. We argue that this explanation overlooks a less socially desirable mechanism by which social impact framing leads to lower compensation demands: the perception among job candidates that requesting higher pay will breach organizational expectations to value work for its intrinsic (rather than extrinsic) rewards, or constitute a motivational norm violation. We find evidence for our theory across five studies: a qualitative …
Going Far Together By Being Here Now: Mindfulness Increases Cooperation In Negotiations, Theodore Charles Masters-Waage, Jared Nai, Jochen Reb, Samantha Sim, Jayanth Narayanan, Noriko Tan
Going Far Together By Being Here Now: Mindfulness Increases Cooperation In Negotiations, Theodore Charles Masters-Waage, Jared Nai, Jochen Reb, Samantha Sim, Jayanth Narayanan, Noriko Tan
Research Collection Lee Kong Chian School Of Business
Integrating theorizing across the mindfulness and negotiation literatures, we hypothesize that mindfulness increases cooperation in negotiations. We further propose that processes of self-transcendence, self-regulation, and self-awareness mediate this effect. We test these hypotheses in five studies across different forms of cooperation, in both distributive and integrative negotiation contexts, and for both measured and experimentally induced mindfulness. In Study 1a, individuals higher on measured state mindfulness displayed greater cooperative orientation measured as preference for pareto-optimal agreements. In Study 1b, experimentally induced mindfulness led to greater cooperative orientation measured as the recall of cooperative heuristics. In Study 2, a distributive (fixed-sum) negotiation, …
Power And Negotiation: Review Of Current Evidence And Future Directions, Michael Schaerer, Laurel Teo, Nikhil Madan, Roderick I. Swaab
Power And Negotiation: Review Of Current Evidence And Future Directions, Michael Schaerer, Laurel Teo, Nikhil Madan, Roderick I. Swaab
Research Collection Lee Kong Chian School Of Business
This review synthesizes the impact of power on individual and joint negotiation performance. Although power generally has positive effects on negotiators’ individual performance (value claiming), recent work suggests that more power is not always beneficial. Taking a dyadic perspective, we also find mixed evidence for how power affects joint performance (value creation); some studies show that equal-power dyads create more value than unequal-power dyads, but others find the opposite. We identify the source of power, power distribution, and competitiveness as critical moderators of this relationship. Finally, we suggest that future research should move beyond studying alternatives in dyadic deal-making, identify …
Win-Win In Distributive Negotiations: The Economic And Relational Benefits Of Strategic Offer Framing, Michael Schaerer, Martin Schweinsberg, Nico Thornley, Roderick I. Swaab
Win-Win In Distributive Negotiations: The Economic And Relational Benefits Of Strategic Offer Framing, Michael Schaerer, Martin Schweinsberg, Nico Thornley, Roderick I. Swaab
Research Collection Lee Kong Chian School Of Business
In distributive negotiations, people often feel that they have to choose between maximizing their economic outcomes (claiming more value) or improving their relational outcomes (having a satisfied opponent). The present research proposes a conversational strategy that can help negotiators achieve both. Specifically, we show that using an offer framing strategy that shifts offer recipients’ attention to their reservation price (e.g., “How does my offer compare to your minimum price?”) leads to both (a) an assimilation effect whereby recipients make more favorable counteroffers (economic benefit) as well as (b) a contrast effect whereby recipients feel more satisfied with the negotiation (relational …
Financial Vulnerability And The Reproduction Of Disadvantage In Economic Exchanges, Tianyu He, Rellie Derfler-Rozin, Marko Pitesa
Financial Vulnerability And The Reproduction Of Disadvantage In Economic Exchanges, Tianyu He, Rellie Derfler-Rozin, Marko Pitesa
Research Collection Lee Kong Chian School Of Business
Integrative value generation through negotiated business deals is a fundamental way in which organizations and economic systems attain economic benefits. It is also an important way in which individuals can improve their financial situation. We propose that individuals most in need of improving their financial standing, those in a financially vulnerable situation, are least likely to reap the benefits of integrative value generation. We theorize that financial vulnerability induces a more zero-sum construal of success, or a view that success for one person must come at another person’s success. A more zero-sum construal of success, in turn, hampers negotiators’ ability …
Imaginary Alternatives: The Impact Of Mental Simulation On Powerless Negotiators, Michael Schaerer, Martin Schweinsberg, Roderick I. Swaab
Imaginary Alternatives: The Impact Of Mental Simulation On Powerless Negotiators, Michael Schaerer, Martin Schweinsberg, Roderick I. Swaab
Research Collection Lee Kong Chian School Of Business
The present research demonstrates that negotiators can act powerfully without having power.Researchers and practitioners advise people to obtain strong alternatives prior to negotiating toenhance their power. However, alternatives are not always readily available, often forcingnegotiators to negotiate without much, or any, power. Building on research suggesting thatsubjective feelings of power and objective outcomes are disconnected and that mental simulationcan increase individuals’ aspirations, we hypothesized that the mental imagery of a strongalternative could provide similar psychological benefits to having an actual alternative. Ourstudies demonstrate that imagining strong alternatives causes individuals to negotiate moreambitiously and provides them with a distributive advantage: negotiators …
What Are The Determinants Of Interpersonal Trust In Dyadic Negotiations? Meta-Analytic Evidence And Implications For Future Research, Serena Changhong Lu, Dejun Tony Kong, Donald Lee Ferrin, Kurt T. Dirks
What Are The Determinants Of Interpersonal Trust In Dyadic Negotiations? Meta-Analytic Evidence And Implications For Future Research, Serena Changhong Lu, Dejun Tony Kong, Donald Lee Ferrin, Kurt T. Dirks
Research Collection Lee Kong Chian School Of Business
Given the practical importance of interpersonal trust in dyadic negotiations, scholars have increasingly turned their attention to the study of determinants of trust in negotiations. However, research in this area has not been well connected or integrated, which limits the ability of scholars and practitioners to ascertain the state of current scientific knowledge and identify questions for future research. Based on attribution theory and social exchange theory, we present a conceptual framework for understanding how a variety of factors combine to influence the development of interpersonal trust in dyadic negotiations. Then, to verify the conceptual framework, we identified and meta-analysed …
The Too-Much Precision Effect: When And Why Precise Anchors Backfire With Experts, David D. Loschelder, Malte Friese, Michael Schaerer, Adam D. Galinsky
The Too-Much Precision Effect: When And Why Precise Anchors Backfire With Experts, David D. Loschelder, Malte Friese, Michael Schaerer, Adam D. Galinsky
Research Collection Lee Kong Chian School Of Business
Past research has suggested a fundamental principle of price precision: The more precise an opening price, the more it anchors counteroffers. The present research challenges this principle by demonstrating a too-much-precision effect. Five experiments (involving 1,320 experts and amateurs in real-estate, jewelry, car, and human-resources negotiations) showed that increasing the precision of an opening offer had positive linear effects for amateurs but inverted-U-shaped effects for experts. Anchor precision backfired because experts saw too much precision as reflecting a lack of competence. This negative effect held unless first movers gave rationales that boosted experts’ perception of their competence. Statistical mediation and …
Self-Esteem And Women’S Performance In Mixed-Gender Negotiations, Serena Changhong Lu, Elizabeth Layne Paddock, Jochen Reb
Self-Esteem And Women’S Performance In Mixed-Gender Negotiations, Serena Changhong Lu, Elizabeth Layne Paddock, Jochen Reb
Research Collection Lee Kong Chian School Of Business
Past research shows gender stereotype threat effect negatively affects women's economic negotiation outcomes, but little is known about moderators of this effect. The present research investigated self-esteem (SE) level and social contingent self-esteem (SCSE) as potential buffers to the gender stereotype threat effect. Based on the contingencies of self-worth model (Crocker & Wolfe, 2001), we hypothesized that SE level interacts with SCSE to determine women's outcomes at the bargaining table such that high SE women with low SCSE do not confirm gender stereotypes and achieve higher performance in mixed-gender negotiations. Drawing on the integrated process model of stereotype threat effects …
Anchors Weigh More Than Power: Why Absolute Powerlessness Liberates Negotiators To Achieve Better Outcomes, Michael Schaerer, Roderick I. Swaab, Adam D. Galinsky
Anchors Weigh More Than Power: Why Absolute Powerlessness Liberates Negotiators To Achieve Better Outcomes, Michael Schaerer, Roderick I. Swaab, Adam D. Galinsky
Research Collection Lee Kong Chian School Of Business
The current research shows that having no power can be better than having a little power. Negotiators prefer having some power (weak negotiation alternatives) to having no power (no alternatives). We challenge this belief that having any alternative is beneficial by demonstrating that weak alternatives create low anchors that reduce the value of first offers. In contrast, having no alternatives is liberating because there is no anchor to weigh down first offers. In our experiments, negotiators with no alternatives felt less powerful but made higher first offers and secured superior outcomes compared with negotiators who had weak alternatives. We established …
Hazards To Effective Due Diligence, Michael Benoliel
Hazards To Effective Due Diligence, Michael Benoliel
Research Collection Lee Kong Chian School Of Business
It is not surprising that many business deals fail to realize their expected future value because some deal makers fail to perform effective due diligence. Successful deal makers, however, know that due diligence is one of the most important tasks in successful deal making. Thus, they avoid the psychological and contextual traps that cause poor due diligence. In this article, I describe the hazards – the psychological biases and contextual factors – that might affect the due diligence task. These hazards include information availability bias; confirmation bias; overconfidence bias; time pressure; self-interested agents; deal fever; narrow focus; and complexity. Following …
Interpersonal Trust Within Negotiations: Meta-Analytic Evidence, Critical Contingencies, And Directions For Future Research, Dejun Tony Kong, Kurt T. Dirks, Donald L. Ferrin
Interpersonal Trust Within Negotiations: Meta-Analytic Evidence, Critical Contingencies, And Directions For Future Research, Dejun Tony Kong, Kurt T. Dirks, Donald L. Ferrin
Research Collection Lee Kong Chian School Of Business
Trust has long been recognized by scholars and practitioners alike as an important factor for negotiation success. However, there has been little effort to date to empirically review or theoretically synthesize the research on trust in the context of negotiations. We present a social exchange framework that describes the processes through which trust influences negotiation behaviors and outcomes. We identified three critical contingencies that modified the effects of trust on negotiation behaviors and outcomes. A meta-analysis on a sample of 38 independent studies provided considerable support for the model and also confirmed the importance of the three contingencies for understanding …
The Role Of Simmelian Friendship Ties On Retaliation Within Triads, Kenneth T. Goh, David Krackhardt, Laurie R. Weingart, Tat Koon Koh
The Role Of Simmelian Friendship Ties On Retaliation Within Triads, Kenneth T. Goh, David Krackhardt, Laurie R. Weingart, Tat Koon Koh
Research Collection Lee Kong Chian School Of Business
We examine the effect of friendship in triads on retaliatory responses to unfair outcomes that originate from a group member. Drawing on Simmel's classic discussion of relationships in social triads versus dyads, we hypothesized that the effect of unfairness on retaliation between friends is stronger when the third party in the triad is a mutual friend, rather than a stranger. We also draw on social categorization theory to hypothesize that the effect of unfairness on retaliation between strangers is stronger when the third party is a friend of that stranger than when the triad consists of all strangers. Hypotheses were …
The Influence Of Mindful Attention On Value Claiming In Distributive Negotiations: Evidence From Four Laboratory Experiments, Jochen Reb, Jayanth Narayanan
The Influence Of Mindful Attention On Value Claiming In Distributive Negotiations: Evidence From Four Laboratory Experiments, Jochen Reb, Jayanth Narayanan
Research Collection Lee Kong Chian School Of Business
We examined the effect of mindful attention on negotiation outcomes in distributive negotiations across four experiments. In Studies 1 and 2, participants who performed a short mindful attention exercise prior to the negotiation claimed a larger share of the bargaining zone than the control condition participants they negotiated with. Study 3 replicated this finding using a different manipulation of mindful attention. Study 4 again replicated this result and also found that mindful negotiators were more satisfied with both the outcome and the process of the negotiation. We discuss theoretical and practical implications, limitations, and future directions.
Negotiating Successfully In Asia, Michael Benoliel
Negotiating Successfully In Asia, Michael Benoliel
Research Collection Lee Kong Chian School Of Business
Cross-cultural negotiations are complex, challenging, and difficult to navigate because much of the Asian culture is unstated, implicit, and internalized in subtle behavioral patterns. It is like an iceberg; more is invisible and less is visible. To understand how the Asian negotiation values and practices are different from those in the West, I describe briefly the Asian cultural roots, highlight the major dimensions that differentiate cultures, explore the factors that influence the Asian negotiation processes and outcomes, and provide a list of practical suggestions for negotiating successful deals with Asian negotiators.
Trust Building, Diagnosis, And Repair In The Context Of Negotiation, Donald L. Ferrin, Dejun Tony Kong, Kurt T. Dirks
Trust Building, Diagnosis, And Repair In The Context Of Negotiation, Donald L. Ferrin, Dejun Tony Kong, Kurt T. Dirks
Research Collection Lee Kong Chian School Of Business
The following sections are included in this chapter: What is Trust and How is it Manifested in Negotiations?; What Makes a Negotiation Party Trustworthy?; Ability; Integrity; Benevolence; Perceived ability, integrity, and benevolence in combination; How Can I Gain Others' Trust?; How Can I Assess Another's Trustworthiness?; Repairing Trust After a Violation.
Reading Your Counterpart: The Benefit Of Emotion Recognition Accuracy For Effectiveness In Negotiation, Hillary Anger Elferbein, Maw Der Foo, Judith White, Hwee Hoon Tan, Voon Chuan Aik
Reading Your Counterpart: The Benefit Of Emotion Recognition Accuracy For Effectiveness In Negotiation, Hillary Anger Elferbein, Maw Der Foo, Judith White, Hwee Hoon Tan, Voon Chuan Aik
Research Collection Lee Kong Chian School Of Business
Using meta-analysis, we find a consistent positive correlation between emotion recognition accuracy (ERA) and goal-oriented performance. However, this existing research relies primarily on subjective perceptions of performance. The current study tested the impact of ERA on objective performance in a mixed-motive buyer-seller negotiation exercise. Greater recognition of posed facial expressions predicted better objective outcomes for participants from Singapore playing the role of seller, both in terms of creating value and claiming a greater share for themselves. The present study is distinct from past research on the effects of individual differences on negotiation outcomes in that it uses a performance-based test …
The Influence Of Past Negotiations On Negotiation Counterpart Preferences, Jochen Reb
The Influence Of Past Negotiations On Negotiation Counterpart Preferences, Jochen Reb
Research Collection Lee Kong Chian School Of Business
Choosing the right counterpart can have a significant impact on negotiation success. Unfortunately, little research has studied such negotiation counterpart decisions. Three studies examined the influence of past negotiations on preferences to negotiate again with a counterpart. Study 1 found that the more favorable a past negotiated agreement the stronger the preference to negotiate with the counterpart in the future. Moreover, this relation was mediated through liking of the counterpart. Study 2 manipulated the difficulty of achieving a favorable agreement in the negotiation and found a significant effect of this situational factor such that subsequent counterpart preferences were less favorable …
Emotional Intelligence And Negotiation: The Tension Between Creating And Claiming Value, Maw Der Foo, Hillary Anger Elfenbein, Hwee Hoon Tan, Voon Chuan Aik
Emotional Intelligence And Negotiation: The Tension Between Creating And Claiming Value, Maw Der Foo, Hillary Anger Elfenbein, Hwee Hoon Tan, Voon Chuan Aik
Research Collection Lee Kong Chian School Of Business
As a departure from past research on emotional intelligence (EI), which generally examines the influence of an individual's level of EI on that individual's consequences, we examined relationships between the emotional intelligence (EI) of both members of dyads involved in a negotiation in order to explain objective and subjective outcomes. As expected, individuals high in EI reported a more positive experience. However, surprisingly, such individuals also achieved significantly lower objective scores than their counterparts. By contrast, having a partner high in El predicted greater objective gain, and a more positive negotiating experience. Thus, high EI individuals appeared to benefit in …