Is stress good for negotiation outcomes? The moderating effect of social value orientation

Abstract

Purpose: Negotiations are often conducted under stress. Previous studies show that stress can help or hurt negotiation outcomes. This study suggests that individual differences explain these effects, and the purpose of this study is to examine the effect of social value orientation (SVO) and stress on negotiation outcomes. Design/methodology/approach: Two experimental studies and a pilot investigate the influence of stress and SVO (prosocial vs proself) on negotiation offers and outcomes. The authors’ studies are grounded on social interdependence theory and arousal literatures to explain the effects of stress on negotiation. Findings: Stress has a positive influence on integrative offers (S1) and joint outcomes (S2). SVO moderates the effect of stress on joint negotiation outcomes (S2), such that, under stress, prosocials fare better than proselfs. Research limitations/implications: Managers negotiating under stress should pay attention to their own as well as the others’ SVOs. Managers could also build their negotiation teams considering this individual difference and favor the presence of prosocials in stressful negotiations. Practical implications: The findings have practical implications for managers who are under stress on a daily basis. Social implications: This research contributes to managers that need to understand how to reach integrative agreements under stress. This is especially important when negotiators are representatives of employees or companies, as the outcomes can affect many individuals. Originality/value: To the best of the authors’ knowledge, this is the first study examining the relationship between stress, SVO and negotiation offers and outcomes.