Improving negotiation success in B2B sales organizations: is structured negotiation management a success factor?

Abstract

AbstractResearchers and practitioners alike recognize the necessity to manage salespeople before, during, and after negotiations. Literature identifies four approaches that companies use to manage salespeople in and around negotiations. However, it has never been researched which of these approaches help companies implement negotiation management successfully. The present study examines which management approach or combination of approaches lead to a consistently high level of negotiation success. The authors use a fuzzy-set qualitative comparative analysis to identify the conditions explaining negotiation success. The findings indicate that any effort to actively manage negotiations as a corporate capability supports sales in achieving a higher level of negotiation success. While the study was not able to identify any necessary conditions, the sufficient solution formula to reach a high level of negotiation success comprises two paths in its most parsimonious form. Following this solution formula, companies should either enable salespeople to solve complex situations autonomously and provide guidance along the negotiation process or define clear objectives, manage salespeople against deviations from the objectives, and monitor them closely throughout the negotiation process. This suggests, that successful negotiation management either empowers salespeople to act autonomously or focuses on a control management style. The latter should comprise both aspects of outcome and behavior control.