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A Multiple Case Study on How SMEs Negotiate
Linköping University, Department of Management and Engineering, Industrial Economics. Linköping University, Faculty of Science & Engineering.
Linköping University, Department of Management and Engineering, Industrial Economics. Linköping University, Faculty of Science & Engineering.
2016 (English)Conference paper, Oral presentation only (Other academic)
Abstract [en]

Purpose – The objective of this paper is to explore buyer-seller negotiations in Small and Medium Enterprises (SMEs) and highlight patterns and differences within the studied group of companies. Design/methodology/approach – This is a multiple case study based on 12 cases. Each case represents an SME in the Östergötland county of Sweden. Representatives from each case company were interviewed. A cross case analysis informs the discussion. Findings – Results indicate that SMEs’ bargaining power is highly dependent on external factors such as competition, and the negotiation strategies of SMEs are influenced by their strong relationship focus. Negotiation preparation is given low priority in favor of informal information gathering during encounters with customers. The negotiation process of SMEs is embedded and influenced by the relational context. Strong SME negotiation areas include the understanding of customer value. Weak areas include the use of negotiation teams, and negotiation performance evaluation. Research limitations/implications – SMEs have previously been treated without special attention in research concerning business negotiations. However, this study identifies multiple aspects in which SMEs approach negotiations with customers differently. Most importantly, future research concerning SME negotiations should consider the relationship aspect of negotiations. Practical implications – Practitioners in SMEs should consider how their market affects their bargaining power, possible use of negotiation teams, alignment of company ethics and negotiation strategies, and spending more time on negotiation preparation and evaluation. Social implications – Originality/value – The study contributes through its exploration and identification of patterns of SMEs’ negotiations with customers. It adds critical areas to consider, to the developing literatures on SMEs and on business negotiations.

Place, publisher, year, edition, pages
2016.
Keyword [en]
Negotiation, SMEs, Relationship marketing, Business-to-business marketing
National Category
Business Administration
Identifiers
URN: urn:nbn:se:liu:diva-142299OAI: oai:DiVA.org:liu-142299DiVA: diva2:1152493
Conference
2016 CBIM Academic Workshop, June 29th to July 1st, 2016, Bilbao, Spain
Available from: 2017-10-25 Created: 2017-10-25 Last updated: 2017-11-28

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Hoshi Larsson & Rehme 2016

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf