The Effects of Previous Negotiators’ Performance, Negotiation Self-Efficacy, Cognitive Style, and Goal Orientation on Negotiators’ Risk Taking

Abstract

While risk is an integral part of our lives, little is known about the factors that affect risk- taking behaviors in negotiations. To address this deficiency we designed an experiment to examine the effect of information about previous negotiators’ performance, negotiator self-efficacy, negotiator goal orientation, and negotiator cognitive style, upon negotiators’ risk-taking behaviors. We found that negotiators who were given information that past negotiators were roughly divided to two-those who achieved a high outcome and those who achieved a low outcome, took more risks that those who were given information that past negotiators achieved a moderate outcome. We also found that negotiators with lower negotiation self-efficacy, a performance-approach goal orientation, and an intuitive cognitive style, took more risks in the negotiation compared to other negotiators. We hope that this study gives direction for future research in this field that would help scholars to better understand what influences negotiators’ risk taking. The results may also assist negotiators in making better decisions about taking risks in negotiations.