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Article
Publication date: 13 June 2023

Omar Shehryar

The purpose of this study is to understand how the degree of congruence between buyers’ and sellers’ intentions to negotiate impacts buyers’ postpurchase emotions and attitudes…

Abstract

Purpose

The purpose of this study is to understand how the degree of congruence between buyers’ and sellers’ intentions to negotiate impacts buyers’ postpurchase emotions and attitudes. In addition, the study examines whether buyers’ self-confidence and negotiation expertise can increase buyers’ perceptions of control and regret, as well as buyers’ postpurchase satisfaction and enjoyment with the purchase. Traditionally, marketplace exchanges have been classified as either fixed price or negotiated. The present research treats marketplace exchanges along a continuum of intention congruence to test the relationships between intention congruence and outcome variables of control, regret, satisfaction and enjoyment with the purchase.

Design/methodology/approach

The authors studied the perceived difference between buyers' and sellers' intentions to negotiate and how the difference impacts buyers' postpurchase attitudinal and emotional outcomes. A mail survey of automobile buyers resulted in a sample of 291 respondents. An automobile is a significant and irreversible purchase for a buyer. Thus, automobile markets often host transactions that evoke dissonance and regret for buyers if things go awry. In addition, buyers and sellers vary considerably in their desire to negotiate, thus reflecting a range of intention congruence in negotiation. Therefore, a survey of automobile buyers was considered appropriate for testing the effects of intention congruence on buyers’ postpurchase outcomes.

Findings

Results indicate that when buyers are willing to negotiate but sellers do not reciprocate equally, buyers feel less in control of a transaction. Contrarily, buyers experienced greater control and lesser regret when buyers’ perceptions of sellers’ intention to negotiate exceeded buyers’ own intentions to negotiate. Results also suggest that when buyers’ intentions to negotiate were congruent with buyers’ perception of sellers’ intention to negotiate, greater dyadic levels of negotiation marginally lowered buyers’ perceived regret. Overall, an intention-congruence perspective adds to the current understanding of negotiated exchanges and is a meaningful approach for improving postpurchase outcomes for buyers.

Research limitations/implications

The study used only the consumers’ perspective of negotiation. Although this is supported by studies in power and dependence because the consumers’ perspective is valuable and valid, a true dyadic measurement of the negotiation process can only be obtained if the sellers’ view is also incorporated. This remains a key limitation of this study.

Practical implications

The results suggest that sellers may be better off honoring buyers’ intentions to negotiate. Intention incongruence negatively impacted buyer satisfaction when buyers perceived sellers to be less eager to negotiate. However, where sellers seem more eager to negotiate, incongruity favored buyers and positively impacted buyers’ postpurchase outcomes. Thus, for sellers, it is worthwhile to consider adding policies that honor negotiation.

Originality/value

Past research classifies marketplaces exchanges as either fixed price or negotiated. The present study uses intention congruence as a continuum between transaction partners. The intention congruence approach allows a closer examination of both the symmetry and strength of intentions to negotiate in a dyadic exchange. Given that markets are comprised of buyers and sellers who display considerable variability in intentions to negotiate, examining intention congruence allows for a more realistic study of negotiation behavior in business-to-consumer marketplaces.

Details

Journal of Consumer Marketing, vol. 40 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 11 April 2023

Zahide Karakitapoğlu-Aygün, Berrin Erdogan, David E. Caughlin and Talya N. Bauer

Transformational leadership (TFL) has been suggested to create positive changes in employees with the goal of developing them into leaders. The authors integrate this…

Abstract

Purpose

Transformational leadership (TFL) has been suggested to create positive changes in employees with the goal of developing them into leaders. The authors integrate this well-established leadership style with recent research on idiosyncratic deals (i-deals). The authors suggest TFL as a predictor of task and development-based i-deals, and propose i-deals as a mediating mechanism linking TFL to employee outcomes (job satisfaction, job stress and manager-rated performance).

Design/methodology/approach

The authors used a time-lagged research design, and collected four waves of data from 140 employees and 78 leaders.

Findings

TFL was found to be an important predictor of i-deals. I-deals predicted job satisfaction and job stress; and it mediated the relationship between TFL and these two employee outcomes. Yet, i-deals were not associated with employee performance and did not mediate the relationship.

Originality/value

First, it shows that transformational leaders who consider employees' unique skills and support their professional growth are more likely to grant personalized arrangements. Second, drawing from social exchange theory, it illustrates that i-deals may act as a linkage between TFL and employee outcomes. The paper bridges leadership and i-deals literature to identify key leverage points through which leaders can enhance employee satisfaction, well-being and performance.

Details

Personnel Review, vol. 53 no. 2
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 5 September 2023

Yan Liu, Miaodi Zhou, Lingyan Hu and Kimberly S. Jaussi

This study aims to identify when and why receiving i-deals will result in an increase in affective commitment rather than continuance commitment. As affective commitment yields…

Abstract

Purpose

This study aims to identify when and why receiving i-deals will result in an increase in affective commitment rather than continuance commitment. As affective commitment yields long-term benefits for organizations than continuance commitment, this work will help organizations accrue maximum benefits from granting i-deals.

Design/methodology/approach

This study develops a cognitive model delineating the process between i-deal receipt and the variation in i-dealers’ continuance or affective commitment.

Findings

After receiving i-deals, i-dealers’ perceived valence may change with i-dealers’ evaluations of i-deal resources under the condition of coworkers' negative reactions or organizational investment. The i-deal valence changes trigger i-dealers’ internal or external attributions of coworkers' negative reactions or organizational investment, which leads to the variation in continuance or affective commitment. The changes of affective commitment also affect the variation in continuance commitment.

Originality/value

Integrating expectancy theory and attribution theory, this research addresses inconsistent findings about i-deals’ effect on continuance or affective commitment by revealing the critical factors that lead to the variation in the two types of commitment. The proposed model offers new theoretical rationale for why i-dealers may not reciprocate the goodwill of i-deals to their organizations. This study suggests i-dealers will engage in attributions rather than being passive recipients of their coworkers' negative reactions, which challenges previous view that the effectiveness of i-deals is ultimately determined by coworkers' acceptance. This research also extends the i-deal dynamics literature by depicting how i-deal valence changes arise and influence continuance or affective commitment.

Details

Baltic Journal of Management, vol. 18 no. 5
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 30 June 2023

Ying Huang, Xiankui Hu, Kenneth Hunsader and Steven Xiaofan Zheng

The authors of this study aim to investigate possible explanations of the prevalence of price clustering in the final offer prices of mergers and acquisitions (M&A).

Abstract

Purpose

The authors of this study aim to investigate possible explanations of the prevalence of price clustering in the final offer prices of mergers and acquisitions (M&A).

Design/methodology/approach

The authors use final offer price in M&A deals to investigate the price clustering phenomena. The authors used regressions and logistic regressions to examine potential factors that might affect pricing strategy by looking into one-time acquirers and experienced serial acquirers.

Findings

Price clustering increases with negotiation uncertainties characterized as competitive bidding, number of bidders, challenged deals and duration. Moreover, the authors find persistent price clustering in experienced serial acquirers that are more experienced and better equipped with handling uncertainties, suggesting a preference of using round numbers regardless of levels of uncertainties. The authors' evidence shows that price clustering results from a combination of Harris' (1991) costly negotiation hypothesis where round prices may be used to lower search costs and psychological bias and preference.

Originality/value

The authors appear to be the first to investigate alternative theories that support M&A offer price clustering behavior, finding that both the costly negotiation and psychological bias and preference theories apply to M&A final price formation. Thus, the authors' major contribution, specific to the M&A process, is a clarification of physical and psychological factors associated with bidding and negotiation behavior. The authors are confident that the authors' study impacts conventional knowledge regarding M&A deal negotiation strategies, including bidding behavior, contract negotiation, financial analysis, management practices and risk management.

Details

Managerial Finance, vol. 49 no. 12
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 13 February 2024

Anne-Sophie Thelisson and Olivier Meier

Organizational resilience, defined by a firm’s speed in reaching a dynamic equilibrium after a shock and after the shocks are absorbed, and crisis management are critical in a…

Abstract

Purpose

Organizational resilience, defined by a firm’s speed in reaching a dynamic equilibrium after a shock and after the shocks are absorbed, and crisis management are critical in a global crisis. The concept of resilience is increasingly used in the economic press; nevertheless, few studies demonstrate empirically how firms became resilient and the lessons to be learned from it. Traditionally, the concept of resilience is approached as resistance in the face of a crisis. The authors go further by showing three-loop learning, which is part of a logic of innovation and regeneration. This study aims to examine how a business can regenerate itself by effectively managing the external threats and disruptions caused by a crisis. Also, this study deepens knowledge on learning process. The double-loop learning process is known in the literature as enabling firms to learn from unexpected events and react accordingly. The findings point out a third loop implying the co-invention of a new business model and a collective mindfulness of changes made.

Design/methodology/approach

Using longitudinal data, the authors investigate how the global crisis affects merger negotiations between two companies. This study analyzes the period of dialogue (negotiation) between the two entities with a view to carrying out a merger and then their withdrawal from the project during the pandemic, reshuffling the cards for each company. The negotiation period is not normally disclosed because of its highly confidential and strategic nature and it is therefore difficult for researchers to access merger operations at the negotiation stage. From this viewpoint, this case study was chosen because of the availability of generally inaccessible documentation.

Findings

This in-depth case study provides new insights on organizational resilience and the recovery capacity of a firm. The results underline four main triggers that a firm should develop in facing a major crisis: skills; credits; previous and historical relationships; and corporate culture. Recovery capacity depends on reactivity, flexibility, learning and regeneration. Finally, this study points out a three-loop learning experience that can be understood as a learning process in two steps to generate lasting and adaptive changes.

Research limitations/implications

The limitations are those concerning a single case study.

Practical implications

This study highlights the ability to deal with unexpected events. First, this work identifies concrete items that can be perceived by managers as elements enabling a firm to develop resilience. Second, the results show main elements enabling this capacity as reactivity – both companies react quickly and effectively to disturbances to limit the impact on their performance; or flexibility – firms adapt their business model to deal with disruptions. Third, this work underlines a learning capacity process in three steps to recover capacity. This process stimulates creativity and innovation by the teams and stakeholders by placing them at the heart of the change.

Originality/value

This case provides a vivid illustration of firms’ adaptation to a rapidly evolving context because of a global crisis. Theoretical concepts and empirical findings from the literature are combined to present a single consistent picture.

Details

Journal of Business Strategy, vol. 45 no. 3
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 7 December 2023

Mohammad Fuad and Ajith Venugopal

Mergers and acquisitions (M&As) are important strategic actions undertaken by firms to access resources and markets. However, firms face substantial challenges in M&As during deal…

Abstract

Purpose

Mergers and acquisitions (M&As) are important strategic actions undertaken by firms to access resources and markets. However, firms face substantial challenges in M&As during deal completion. While prior literature reviews synthesize the studies on the post-merger consequences of M&As, the literature on deal completion is largely fragmented. In this paper, the authors synthesize prior literature on deal completion into the antecedents and consequences framework and map various studies across the international business and management, finance and accounting literature at the macro-, meso- and micro-levels.

Design/methodology/approach

The authors adopt a content analysis-based methodology to conduct the review. First, the authors identify existing literature on deal completion based on keyword searches. Next, the authors propose a framework that integrates the extant literature from a multi-theoretic perspective across four broad themes: concepts, antecedents, implications and moderators. In this study, the authors consider not only empirical but also conceptual papers to strengthen the theoretical foundations of M&A literature. Finally, after synthesizing various studies, the authors highlight a future research agenda on deal completion.

Findings

Based on the review, this study provides important avenues for future research on M&A deal completion.

Originality/value

This study theoretically integrates multi-disciplinary and multi-country research on acquisition completion.

Details

Cross Cultural & Strategic Management, vol. 31 no. 1
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 1 September 2023

Jung Hyun Lee, Hillary Anger Elfenbein and William P. Bottom

This study aims to test negotiation outcomes when bilinguals negotiate in a foreign rather than their native language. Decision research on the foreign language effect indicates…

Abstract

Purpose

This study aims to test negotiation outcomes when bilinguals negotiate in a foreign rather than their native language. Decision research on the foreign language effect indicates that bilingual individuals may be less susceptible to framing bias when using a foreign language because they make less emotional and biased choices. With increasing international business activity, there is a pressing need to examine the effect of language on bilingual negotiators.

Design/methodology/approach

The authors tested the hypotheses using a two (task frame: gain vs loss) × 2 (language: foreign vs native) factorial design recruiting 246 Korean–English bilinguals. A negotiation simulation with three issues was used, and participants exchanged offers with a preprogrammed computer they believed to be a real counterpart.

Findings

There was no significant interaction effect between framing and language on the offers made, but the framing effect was mitigated and nonsignificant for negotiators who used their foreign language. The interaction between framing and language conditions significantly affected negotiators’ positive emotions and satisfaction with the negotiation.

Originality/value

The uniqueness of this paper is related to its effort to investigate the effect of negotiation language on a negotiator’s decision-making. Considering globalization and the increasing prevalence of international negotiations, this paper has implications for researchers and practitioners.

Details

International Journal of Conflict Management, vol. 35 no. 2
Type: Research Article
ISSN: 1044-4068

Keywords

Article
Publication date: 21 March 2024

Sugandh Ahuja, Shveta Singh and Surendra Singh Yadav

The purpose of this study is to examine the differential impact of qualitative and quantitative informational signals within the merger and acquisition (M&A) press releases on…

Abstract

Purpose

The purpose of this study is to examine the differential impact of qualitative and quantitative informational signals within the merger and acquisition (M&A) press releases on deal completion and duration. A significant percentage of deals by emerging market acquirers get abandoned before completion, and those that are completed have a longer duration. The limited information about the operations of acquirers from emerging markets creates suspicion among the stakeholders involved in deal resolution, hindering the completion of deals. Thus, using the signal-feedback paradigm, authors investigate how informational signals in the M&A press release impact the deal resolution.

Design/methodology/approach

The study employs content analysis on M&A press releases announced by firms from five emerging economies: Brazil, Russia, India, China and South Africa. The technique is applied based on the exploration-exploitation framework developed by March (1991) to categorize the announced deal motives (qualitative information). Next, the authors identify the percentage of relevant quantitative information disclosed in the press release, following which results are obtained using logistic and ordinary least square regressions.

Findings

The study reports that deals with declared exploratory motives take longer to complete. Additionally, deals disclosing higher percentage of quantitative disclosure exhibit lower completion rate and increased deal duration.

Originality/value

This is the first study to provide evidence that familiarity bias impacts deal duration as relative to exploitation deals that are familiar to the stakeholders; exploratory deals take longer to conclude. Further, our analysis indicates that a greater percentage of quantitative disclosure may not always reduce information risk but rather be interpreted negatively in the form of the acquirer’s overconfidence in the deal’s potential.

Details

Review of Behavioral Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1940-5979

Keywords

Article
Publication date: 6 September 2022

Eun Kyung Lee, Woonki Hong and Deborah E. Rupp

Idiosyncratic deals (i-deals) have been shown to influence several employee outcomes positively. To extend the research, the authors examine the effect of i-deals on employees’…

Abstract

Purpose

Idiosyncratic deals (i-deals) have been shown to influence several employee outcomes positively. To extend the research, the authors examine the effect of i-deals on employees’ perceptions of organizational justice, in particular, how the relationship between employees’ own i-deals and organizational justice is affected by employees' job performance as well as their perceptions of coworkers’ i-deals.

Design/methodology/approach

The authors tested the theoretical model using survey data from 182 hotel employees.

Findings

Results show that i-deals are positively related to employees’ perceptions of organizational justice and that such effects are stronger among high performing employees. The effect of i-deals on organizational justice was also more pronounced among employees who viewed coworkers as having successfully negotiated i-deals.

Practical implications

The authors' findings suggest that organizations can benefit from providing i-deals through employees’ enhanced perceptions of organizational justice. The paper thus recommends that organizations understand the impact of providing more flexible human resources (HR) practices and customized work arrangements that are aligned with individual goals and needs. This may be particularly relevant to high performers. Furthermore, the findings suggest that organizations may want to make i-deals available to employees more widely than to just a few selected individuals.

Originality/value

This study is one of a few attempts that empirically investigate the relationship between i-deals and organizational justice. The findings of this study shed light on the possibility that employees develop positive justice perceptions toward employeesʼ organization based on the appreciation of the customized work arrangements granted to both themselves and others.

Details

Personnel Review, vol. 52 no. 9
Type: Research Article
ISSN: 0048-3486

Keywords

Open Access
Article
Publication date: 12 February 2020

Sabah Ahmd Farag

This theme will be addressed through main points: Special Nature of Investment Disputes and its methods of peaceful settlement. International legal framework governing Arbitration…

6559

Abstract

Purpose

This theme will be addressed through main points: Special Nature of Investment Disputes and its methods of peaceful settlement. International legal framework governing Arbitration in investment disputes: A. Multilateral legal framework. B. Bilateral legal framework/Investment promotion and protection agreementsTypes of arbitration in investment disputes. The Egyptian experience in investment disputes arbitration. The National legal framework. Egypt on the map of investment disputes in the world. A case study. Conclusion: Results related to the legal framework regulating investment disputes in Egypt. Results related to The arbitration cases against Egypt.

Design/methodology/approach

The researcher investigates the subject of international arbitration in investment disputes in the framework of voluntary theory, which is based on the premise that the satisfaction of people who are addressing the international legal norm is the basis of the same rule. In other words, the basis of international law is based on the satisfaction of the State and other international legal persons Both, and then express or implied consent.

Findings

Despite the availability of domestic and regional arbitration mechanisms in Egypt represented by a large number of cases.

Research limitations/implications

The theme for the study primarily on Egypt and the international arbitration of investment disputes, through theoretical and practical study of disputes arbitration which Egypt is a party defendant in which to focus on what was issued in which the provisions of the International Center for Settlement of Investment Disputes, in an attempt to find out the reasons for the verdicts image released it, where it came mostly against Egypt, and whether these judgments against them in investment disputes due to reasons related to the legal framework of the arbitration process, or for reasons of bodies of arbitration issued by those provisions, or to the defense, which represents the Egyptian party, or to the circumstances Economic and political (which represents the investment climate).

Originality/value

The proposed solutions to improve the conditions and factors surrounding the arbitration disputes that Egypt is waging against foreign investors, whether they are initially alleged or accused of drafting agreements and contracts, through amending the relevant legislation and laws, selecting arbitration bodies and defense bodies.

Details

Review of Economics and Political Science, vol. 8 no. 6
Type: Research Article
ISSN: 2356-9980

Keywords

1 – 10 of over 1000