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Building theory on the negotiation capability of the firm: evidence from Ryanair

Andrea Caputo (Lincoln International Business School, University of Lincoln, Lincoln, UK)
Adrian Borbely (Négocier – Résoudre – Initier – Accompagner, Nice, France)
Marina Dabic (University of Zagreb, Faculty of Economics and Business, J.F. Kennedy 6 10000 Zagreb, Croatia, and Nottingham Trent University, UK)

Journal of Knowledge Management

ISSN: 1367-3270

Article publication date: 13 September 2018

Issue publication date: 18 April 2019

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Abstract

Purpose

In an attempt to build upon existing theory, this paper aims to investigate the potentially reciprocal relationship between negotiation and strategy, and strive to contribute toward a better understanding of the ways in which organizations negotiate.

Design/methodology/approach

Built upon the integration of two different bodies of literature, negotiation and strategy, and on the analysis of the case of Ryanair, this paper argues for an integrated approach to negotiation and organizational capabilities.

Findings

The case study allows for a clearer understanding of how negotiation capability can play a significant role in supporting the creation and sustainment of competitive advantage, even under unfavorable industry settings.

Originality/value

This paper contributes to theoretical development by offering new and insightful explanations of firms’ behavior, moving beyond the classic interpretation of industry dynamics, such as bargaining power. This study has implications for both practice and research, as it offers a better and more holistic understanding of the strategy-making process and the foundations of its success.

Keywords

Acknowledgements

The author thanks the Editor Prof Del Giudice and the anonymous reviewers for their insightful comments. A special thanks goes also to the participants and reviewers of the Academy of Management 2016, the European Academy of Management 2016, and the British Academy of Management 2016, who provided important feedback on earlier ideas who led to this manuscript.

Citation

Caputo, A., Borbely, A. and Dabic, M. (2019), "Building theory on the negotiation capability of the firm: evidence from Ryanair", Journal of Knowledge Management, Vol. 23 No. 2, pp. 240-262. https://doi.org/10.1108/JKM-02-2018-0117

Publisher

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Emerald Publishing Limited

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