The Effect of Level of Negotiation Support Systems and Cultural Diversity on Coalition Formation: A Content Analysis

Abstract

This article is an attempt to investigate the role of negotiation support systems (NSSs) in supporting inter-team negotiations, which have become commonplace for today’s business negotiations. Inter-team negotiations differ from simple dyadic negotiations, and are associated with enormous complexity introduced by the negotiating team dynamics. When there are three or more members in a negotiating team, coalition formation by team members stands out as an intriguing phenomenon, of which cultural diversity is a primary antecedent. NSSs through altering coalition formation dynamics have important impacts on various negotiation outcomes. An experiment was conducted to test our research model and hypotheses. A content analysis was undertaken to measure the extent of coalition formation. Besides the quantitative approach, a qualitative analysis was also conducted to further enhance our exploratory efforts in examining the phenomenon. The results provide initial evidence of the usefulness of NSSs in supporting inter-team negotiations and have both theoretical and practical implications.