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| Author: | Abbeele, A. van den Roodhooft, F. Warlop, L. |
| Title: | The effect of cost information on buyer-supplier negotiations in different power settings |
| Journal: | Accounting, Organizations and Society
2009 : FEB, VOL. 34:2 p.245-266 |
| Index terms: | negotiation power information problem solving bargaining |
| Language: | eng |
| Abstract: | The paper investigates the influence of total cost of ownership (hereafter as: TCO) information on buyer-supplier negotiations in different power settings. It is expected, based on social exchange theory and recent literature on information processing, that buyers with detailed TCO information and less power than their negotiation partners may try to (re)gain contol over their own outcomes by sharing infomation. The results indicate that the performance disadvantages of less powerful buyers is less prononunced when the buyer has detailed TCO information, whereas more powerful buyers do not seem to be able to profit from TCO information. Findings are explained through detailed analysis of the buyer's negotiation behavior. It is concluded that power can motivate a failure to share TCO information, which results in less effective interfirm negotiation outcomes. |
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