the social effects of anger in international negotiations

147 Pages·2017·1.57 MB·English

by  Steffen Bertram

THE SOCIAL EFFECTS OF ANGER IN INTERNATIONAL NEGOTIATIONS:
THE ROLE OF SELF-REGULATION AND BARGAINING POWER

BY

STEFFEN BERTRAM

A thesis
submitted to the Victoria University of Wellington
in fulfilment of the requirements for the degree of
Doctor of Philosophy

Victoria University of Wellington
2018

To my wife:
it took a strong and special person
to be my wife during this journey.

Abstract

This thesis addresses recent calls to investigate the influence of individual differences in a
negotiation context. Specifically, I investigate the impact of the personality difference, action
orientation versus state orientation, on concessionary behaviour in international negotiations.
This personality difference was chosen because it measures a negotiator’s capacity to self-
regulate (control their behaviour) in a cognitively demanding situation like an international
negotiation. I propose that action oriented negotiators will display superior self-regulation
ability, compared to state oriented negotiators. Specifically, action oriented negotiators will
be able to adapt their response and concede less than state oriented negotiators, when a
foreign counterpart displays anger.
In two online studies, I measure how action oriented and state oriented negotiators respond to
a display of anger from a foreign counterpart in an international negotiation. The first study
of 159 negotiators showed that action oriented individuals conceded fewer points than state
oriented individuals, regardless of whether the counterpart displayed anger. The second study
of 260 negotiators showed that action oriented individuals can adapt their behaviour
according to their level of power in an international negotiation when facing an angry
counterpart.
As far as I am aware, this research is one of the first to propose and test the salience of action
orientation versus state orientation on displays of anger in international negotiations. My
findings highlight the value of incorporating individual differences in negotiation studies and
I propose their inclusion into the dominant theoretical framework of how negotiators respond
to anger. In addition to extending the model, I discuss how understanding these personality
differences can be useful for multinational companies and their international negotiators.

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Acknowledgements
Cheryl, you believed in me before this journey even began. For that I will forever be
indebted. You have pushed me to academic limits I could not have dreamed of achieving. I
am grateful for the teaching opportunities and support you gave me. Revti, your expertise and
calm demeanour kept me from insanity many a time throughout this journey. I consider
myself extremely honoured to have had such a supervisory team: expert comments, rapid
feedback, patience and personal connections. Dr Cheryl Rivers and Dr Revti Raman, thank
you.
I would like to extend my thanks to all other academics who have supported me through the
last three years, in particular Associate Professor John McDowall for his statistical advice and
encouragement. I would also like to thank Dr James Richard for his methodological
guidance, being the program director and the many helpful chats. Further I would like to
thank Dr Chris Eichbaum for his inspiring and encouraging words. Dr Micael-Lee Johnstone,
for being program director, it was a pleasure to start the day with you at 6am these past few
months. Associate Professor Wolfgang Steinel for giving me advice, especially during the
start of this journey – meeting you in North America and Europe is a particularly fond
memory.
I am grateful to Helen Hynes who gave me teaching opportunities in a wide range of courses,
you have contributed a lot to my experience. Mary and Hannah, your support and
encouragement were appreciated. Katrina, thanks for proofreading and advice on various
issues.
I am grateful for all my colleagues who made this journey so much better, our Friday lunches
were the weekly highlight. I must specifically thank those whom I have had the privilege to
share an office with and make many memories with: Farhana, Naghmeh, Umar, Martyn,
Hoang and René. Naghmeh, my journey was never the same after our two years together,
thanks for your help and support. Martyn, I always appreciated and will miss our deep
philosophical chats that often diverged into politics. René, I doubt our political banter will
stop here. Richa, the random coffees left on my desk, your chocolate cache, 24/7 statistical
support and the many chats, your friendship made this journey so much better.
My rail family, working with you guys over the last two and half years has regularly been the
highlight of my day. Thanks for putting up with my absent mindedness and always
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supporting me. Tangiwai, Jen, Richard, Darren and Ivan, our late-night support groups were
always very much appreciated and needed. Levi and Tim, our many morning breakfasts kept
my sanity.
My heartfelt gratitude to my brothers and sisters, family, and Jos and Hester. This journey
simply could not have happened without you. From babysitting to providing loads of
firewood, from buying train tickets to taking me out on fishing trips, cooking meals and
always being there for me and Jeannette, your all-encompassing support made it possible.
Ma en Arjen, bedankt voor het geven van een huis voor ons voor twee jaar, je financiele en
emotionele steun heeft dit mogelijk gemaakt. Pa en Elisangela, o seu apoio financeira quando
precisávamos a mais foi mais apreciado. Dando-nos o feriados surpreendente foi sempre um
ponto alto. Finalmente, obrigado pelo novo irmãozinho.
Mum, a special thanks goes to you for opening your house, providing years of train tickets
and giving me the self-advocacy to be able to study while having a family. Dad, your endless
babysitting, unconditional love and support, your care and roof made it all possible. We look
forward to the opportunity of returning the favor. All those early mornings when you kicked
me out at the train station are destined to become a fond memory. Making you proud, Mum
and Dad, was a driving focus.
To my wife and children, your daily sacrifice and support made the difference. Yulia, you are
now nine, your unconditional smiles through the entire eight and a half years of this journey
were the best motivation anyone could ask for – you made it possible and I promise I will be
a proper dad now ☺. Jay, your first smiles progressed into cheeky sentences throughout the
last few years. Xander, your first smiles turned into your first word “Daddy” and quickly
progressed into “Daddy, you ca ca”. The two of you coming into the world made the last
three years unforgettable. The hourly reminders for me to check if I set my alarm were
appreciated ☺. You three will grow up to do amazing things!
Finally, my wife, thank you for not making the D stand for divorce. Jeannette, you picked
Ph
me up when I was down, you kicked me when I quit, you took the pen out of my hands when
I needed a break, you were my much-needed psychologist and stats consultant. Thank you for
every one of the 3,000 days when I have woken to your encouraging words and smile. You
are a true blessing, being able to share every step with you is beyond words – I love you.

Yulia, Jay and Xander, this is for you.
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TABLE OF CONTENTS
ABSTRACT…………………………………………………………………………………………...i
ACKNOWLEDGEMENTS…………………………………………..……………………………..iii
CHAPTER 1: INTRODUCTION ........................................................................................................ 1
1.1. Why it is important to study anger in international negotiations ............................................. 1
1.2. Incorporating individual differences to inform negotiators’ responses to anger ...................... 2
1.3. Research methodology ............................................................................................................. 6
1.4. Findings and research contributions ......................................................................................... 6
1.5. Defining core constructs ........................................................................................................... 7
1.6. Outline of this thesis ................................................................................................................. 8
CHAPTER 2: LITERATURE REVIEW ....................................................................................... 9
2.1. Overview .................................................................................................................................. 9
2.2. Anger in negotiation research .................................................................................................. 9
2.3. The social effect of anger ....................................................................................................... 10
2.4. Emotions As Social Information model as a framework........................................................ 11
2.4.1. Moderator Category 1: Observer’s information processing .............................................. 13
The influence of bargaining power ......................................................................................................... 13
Epistemic Motivation and Time Pressure ............................................................................................... 18
2.4.2. Moderator Category 2: Social Relational Factors ............................................................ 19
Prevailing cultural norms ........................................................................................................................ 20
Authenticity ............................................................................................................................................ 27
Direction of the anger ............................................................................................................................. 27
2.5. Introducing individual differences ......................................................................................... 29
2.5.1. Theoretical framework of self-regulation ........................................................................... 31
2.5.2. Measuring self-regulation: Action orientation and State orientation ................................ 33
2.6. Hypothesis development ........................................................................................................ 44
2.6.1. Anger and concession size .................................................................................................. 44
2.6.2. The moderating role of self-regulation ability ................................................................... 46
2.6.3. The moderating role of bargaining power ......................................................................... 48
2.6.4. The joint influence of bargaining power and self-regulation ability ................................. 48
2.7. Chapter Summary ................................................................................................................... 50
CHAPTER 3: METHODOLOGY ................................................................................................ 51
3.1. Introduction ............................................................................................................................ 51
3.2. Appropriateness of the Research Design ................................................................................ 51
3.3. Data collection procedure ....................................................................................................... 53
3.3.1. Sample selection ................................................................................................................. 53
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