Negotiating in Professional Relationships: The Impact of High-Quality Relationships on Negotiation Behaviours and Outcomes

This dissertation draws on the concept of High-Quality Relationships (Dutton & Heaphy, 2003) to explore how professional relationships impact negotiations. Most negotiation research on relationships has focused on relationship type (e.g., strangers versus friends) without considering the quality of the relationship. Only two studies have examined relationship quality and its effects on negotiations (Bagarozzi, 1982; Greenhalgh & Chapman, 1998). I aim to explore how relationship quality impacts negotiation behaviours and outcomes. I propose and test a theoretical model in which (1) the effects of High-Quality Relationships on Integrative Bargaining Behaviours are mediated by Psychological Safety and Integrity Trust, and (2) the effects of High-Quality Relationships on negotiation outcomes (economic and subjective value outcomes) are mediated by Psychological Safety, Integrity Trust, and Integrative Bargaining Behaviours. In Study 1, professionals recalled a work situation where they needed to reach an agreement with a colleague. In Study 2, graduate-level students were assigned to High and Low-Quality Relationship dyads based on their existing class relationships. One week later, dyads engaged in a face-to-face negotiation simulation. Results from both studies showed that High-Quality Relationships has implications for negotiation bargaining behaviours and subjective value outcomes. Study 2 found no association between High-Quality Relationships and economic outcomes. This dissertation sheds light on the High-Quality Relationship construct by (1) highlighting its relevance to the negotiations that occur within on-going professional relationships, and (2) identifying two novel mediators, Integrative Bargaining Behaviours and Integrity Trust, and a novel serial mediating path through Psychological Safety and Integrity Trust. The research also contributes to the literature on negotiations and professional relationships by (1) showing that relationship quality has a direct effect on negotiation bargaining behaviours, (2) identifying the direct and indirect effects of High-Quality Relationships on subjective value outcomes, and finally, (3) identifying relationship quality as a novel relational antecedent of subjective value outcomes. The broader theoretical and managerial implications for a relational-based understanding of negotiations and positive workplace relationships are discussed.