scholarly journals International Business Negotiations: Search of the Balance and the Equilibrium of Negotiating Powers, under Distorting Market Conditions of Competition (Monopsony, Oligopsony and Monopoly Cases)

2017 ◽  
Author(s):  
Kęstutis Peleckis ◽  
Valentina Peleckienė ◽  
Kęstutis Peleckis
Keyword(s):  
International Business ◽  
Negative Impact ◽  
Market Competition ◽  
Theory And Practice ◽  
Negotiation Strategy ◽  
Business Negotiation ◽  
Negotiation Theory ◽  
Market Participants ◽  
Business Units ◽  
Business Negotiations

Certain challenges arise in business negotiations when competition in the market is more or less distorted. This can take place in various markets conditions. In such situations great possibilities open up to the development of international business relations as overclocking new market participants can provide additional alternatives for companies and organizations or other business units, by reducing the negative impact of competition distortions for the balance of negotiating power of participants in negotiations. In the development and implementation of effective international business negotiation strategy, it is important to identify the balance of negotiating power of major participants in negotiations in order to make more efficient use of the potential of business negotiations – the negotiating powers. The aim of this article is to analyze in complex the unfolding theory and practice of development and implementation of international business negotiations and negotiating strategies under distorting market competition conditions, to reveal opportunities on development and implementing improvements of these strategies in cases of monopsony, oligopsony and monopoly. Object of the research is the search of balance on negotiating powers in international business negotiations under conditions of distorted competition in the market. The scientific problem - negotiation theory lacks measures for assessment and balancing the negotiating powers of negotiation’s participants under distorted market competition.

scholarly journals International Business Negotiation Strategies: Cases of Discrimination in Public Procurements

2019 ◽  
pp. 54-64
Author(s):  
Kęstutis Peleckis ◽  
Valentina Peleckienė ◽  
Kęstutis Peleckis ◽  
Edita Leonavičienė
Keyword(s):  
International Business ◽  
Price Discrimination ◽  
Negative Impact ◽  
Market Competition ◽  
Consumer Welfare ◽  
Theory And Practice ◽  
Negative Consequences ◽  
Negotiation Strategy ◽  
Negotiation Strategies ◽  
Different Levels

In the absence of competition, allowing monopolists to discriminate on prices, sales volumes may increase by adopting lower prices for certain groups of consumers who would not otherwise have purchased. If price discrimination is not perfect, it increases consumer welfare - that is, if the price does not correspond to the evaluation of each product by the consumer, then discrimination allows for additional consumers to buy the product at a price, which is lower than the one they would have liked to pay for it. This often results in negative consequences for both consumers and sellers. In this case opportunities for international business are opening, as intervention from other markets can provide additional alternatives to buyers by reducing the negative impact of distorted competition for the balance of negotiating power of negotiators. But there is another problem here in assessing the concentration of market participants, their impact on price discrimination. The aim of the article is to analyze the existing theory and practice of negotiation strategy in a complex way, at different levels of competition, to reveal possibilities to develop and implement these strategies, taking into account the problems of price discrimination. The object of the article is the preparation of negotiation strategies at different levels of competition, taking into account the problems of price discrimination. The article deals with the problem - there are not enough tools in the negotiation theory to help develop negotiation strategies with different levels of competition and price discrimination problems. The paper analyzes the mathematical model of oligopoly. This model explores the feasibility and effectiveness of negotiation strategy preparation in the face of distorted market competition.

scholarly journals Multi-criteria assessment tools for achieving balance between negotiating powers under distorted conditions of competition in construction sector’s market

2021 ◽  
Vol 129 ◽  
pp. 12003
Author(s):  
Kęstutis Peleckis
Keyword(s):  
Market Power ◽  
Market Competition ◽  
Value Added ◽  
Assessment Tools ◽  
Key Factors ◽  
Negotiation Strategy ◽  
Business Negotiation ◽  
Negotiation Strategies ◽  
Business Negotiations ◽  
Business Entities

Research background: this study identified which factors influence other factors and how they have a greater impact on the value of a business entity’s HHI index. By knowing the key factors, they can be used to model possible mergers and their impact on the HHI index and possible changes in the market power balance. Purpose of the article: to present the concept of business negotiation system, enabling to model and effectively manage the process of development and implementation of negotiation strategies, assessing the negotiating power of negotiating parties and selecting multi-criteria assessment tools to balance them in the conditions of distorted construction sector market competition. Methods: multi-criteria assessment is used to assess the market power of business entities in business negotiations in order to select effective strategic solutions for construction sector’s business negotiations. Findings & Value added: a developed algorithm for the development of construction sector’s business negotiation strategy based on evaluations of bargaining power is presented.

scholarly journals Negotiating strategy: importance of the market definition

2019 ◽  
Author(s):  
Kęstutis Peleckis ◽  
Valentina Peleckienė ◽  
Kestutis Peleckis ◽  
Edita Leonavičienė
Keyword(s):  
Market Competition ◽  
Theory And Practice ◽  
Business Strategies ◽  
Market Definition ◽  
Negative Consequences ◽  
Negotiation Strategies ◽  
Market Participants ◽  
The Face ◽  
Business Negotiations ◽  
Practical Implications

Purpose – the purpose of the article is to examine how the extent of competition in the market affects the balance of bargaining powers of market participants. This often results in negative consequences for both buyers and suppliers. This study has important theoretical and practical implications. The authors made an analysis of existing theory and practice on negotiation strategies in a complex way, in accordance with levels of competition. Paper reveals the opportunities to develop and implement these strategies, taking into account market definition options. Research methodology – the paper examines the application of Nash equilibrium to the preparation of negotiation strategies, looking at the function for the best result. The study would help to prepare business strategies for different competition levels. Findings – the ways of preparation of negotiation strategies with different levels of competition, focusing on market definition opportunities. Research limitations – there are not enough measures in international business negotiation theory helping to develop negotiation strategies in the face of distorted market competition and difficulties to define the market. Practical implications – findings of the article will give opportunities for policymakers to develop and implement strategies for business negotiations. Originality – the article consists presentation of new tools for negotiators in preparing negotiating strategies.

scholarly journals Assessment of Bargaining Power in Preparation of International Business Negotiations Strategies: Case of Wholesale Trade

2015 ◽  
Vol 65 ◽  
pp. 1-15
Author(s):  
Kęstutis Peleckis
Keyword(s):  
International Business ◽  
Bargaining Power ◽  
Global Scale ◽  
Business Strategies ◽  
Strategy Development ◽  
Negotiation Strategy ◽  
Business Negotiation ◽  
Negotiation Strategies ◽  
Business Negotiations ◽  
New Challenges

Recently businesses need to find the new ways to ensure business growth and competitiveness in the international market. Cultural diversity of international business brings new challenges in the development and implementation of negotiation strategies of businesses, in cooperation with foreign partners. At present business solutions are used for development and implementation of negotiating strategies for international business, which are not universally suitable for business development in all situations in context of globalization, with current challenges, which are characterized by increasing risk, uncertainty and cultural differences. New challenges in international business negotiations are caused by formation of common cultural and information space in a global scale, the new demands for information technology progress in development of international competition and accelerating innovation processes. International business negotiation strategy development and implementation are setting the essential features and causal relations and is relevant in practice by creating in each negotiation case the unique negotiation strategy, focused on maximizing the effectiveness of the international business with the aim of more efficient use of business negotiation potential – the negotiating power. In scientific problem solving it is necessary to offer such instruments, which would take into account bargaining power of participants in negotiations, and would allow real implementation of business strategies and constitute an appropriate contribution to their development. The article aims - to design a theoretical model for preparing and implementing strategies of international business negotiations, based on evaluations of bargaining powers and to verify experimentally its relevance and applicability.

PELANGGARAN EKSPEKTASI KOMUNIKASI DALAM NEGOSIASI BISNIS INTERNASIONAL DI INDONESIA

2016 ◽  
Vol 4 (1) ◽  
pp. 1-18
Author(s):  
Surti Sunanto
Keyword(s):  
Interpersonal Communication ◽  
International Business ◽  
Evaluation Process ◽  
Expectancy Violations ◽  
Communication Behaviors ◽  
Social Motives ◽  
Business Negotiation ◽  
Expectancy Violation ◽  
Key Words Communication ◽  
Business Negotiations

This study aims to understand the evaluation of communication expectancy violations in international business negotiations in Indonesia. By utilizing the Expectancy Violation Theory (EVT) coined by Judee K. Burgoon (1976) as the primary theoretical reference, this study will explore the forming of communication expectancy as well as the evaluation process undertaken when those communication expectancies are violated within the context of international business negotiations. This study was conducted using a qualitative approach to understand the formation of expectancies and the process of evaluating expectancy violations within the business negotiation context through the lenses of experiences of Indonesian negotiators of the same industry. This strategy is hoped to provide details of the aforementioned process so then this phenomenon can be understood and new arising factors can be identified. The findings of the research indicate that the goal of negotiation and the negotiator’s social motives have become the main moderator in the evaluation of expectancy violations in the negotiation context, both in the event of ambiguous communication behaviors and when an expectation is negatively violated. This differs to EVT’s proposition stating that communicator reward valence is the main moderator in the evaluation process. This study also proposed a model of expectancy violation evaluation within the negotiation context that was never discussed before in previous literature.   Key words: communication expectancy, expectancy violations, interpersonal communication, negotiation, international business negotiations   Penelitian ini bertujuan untuk memahami proses evaluasi pelanggaran ekspektasi komunikasi dalam negosiasi bisnis internasional di Indonesia. Dengan menggunakan Expectancy Violation Theory (EVT) oleh Judee K. Burgoon (1976) sebagai rujukan teoritis utama akan dieksplorasi bagaimana proses pembentukan ekspektasi komunikasi negosiator serta proses evaluasi yang dilakukan pada saat ekspektasi komunikasi tersebut dilanggar dalam konteks negosiasi bisnis internasional. Penelitian dilakukan dengan menggunakan pendekatan kualitatif untuk memahami pembentukan ekspektasi dan proses evaluasi pelanggaran ekspektasi dalam konteks negosiasi melalui pengalaman para negosiator berkebangsaan Indonesia yang telah berpengalaman melakukan negosiasi bisnis internasional. Dengan strategi ini diharapkan dapat terungkap detail proses tersebut, sehingga dapat dipahami dan diindentifikasi faktor-faktor baru yang muncul ketika proses evaluasi pelanggaran ekspektasi dilakukan dalam konteks tersebut. Temuan penelitian ini menunjukkan bahwa dalam konteks negosiasi bisnis, tujuan negosiasi menjadi moderator utama dalam proses evaluasi pelanggaran ekspektasi, baik pada saat terjadi prilaku komunikasi yang ambigu, maupun saat terjadi pelanggaran ekspektasi secara negatif. Hal ini berbeda dengan apa yang disebutkan dalam EVT bahwa kadar nilai komunikator menjadi moderator utama dalam proses evaluasi. Dari temuan hasil penelitian ini diajukan juga model evaluasi pelanggaran harapan dalam konteks negosiasi. Kata kunci: ekspektasi komunikasi, pelanggaran ekspektasi, komunikasi interpersonal, negosiasi, negosiasi bisnis internasional

scholarly journals Preparation of International Business Negotiation Strategies: Competitive Assessment Aspects in The Market Power System

2020 ◽  
Vol 74 ◽  
pp. 06024
Author(s):  
Kęstutis Peleckis ◽  
Valentina Peleckienė ◽  
Kęstutis K. Peleckis ◽  
Giedrė Lapinskienė ◽  
Zlatko Nedelko
Keyword(s):  
Market Power ◽  
International Business ◽  
Competition Policy ◽  
Research Problem ◽  
Natural Monopoly ◽  
Theory And Practice ◽  
Business Negotiation ◽  
Negotiation Strategies ◽  
The Subject ◽  
Regulatory Measures

The existence of exclusive rights to produce or supply services means a monopoly. Often it is called a natural monopoly. Exclusive rights are granted for a long period of time, which should encourage major investments in infrastructure, the development of which is unlikely to occur without a guaranteed market. But sometimes exclusive rights are used in situations where there is no natural monopoly. Exclusive rights are, in many respects, one of the main routes to market. Exclusive rights may allow monopoly pricing and other market power tools. Regulatory measures used by competition authorities alone do not make it possible to avoid such a situation, as they often show a very low success rate in preventing market power from being used to protect consumers. The purpose of this article is to analyze the theory and practice of preparing negotiating strategies in a complex way, to reveal opportunities to develop and implement these negotiating strategies, taking into account competition policy actions. The subject of the study is the preparation of negotiation strategies taking into account competition policy actions in the market. The research problem of the article there is not enough tools in the negotiation theory to help develop negotiation strategies in line with competition policy actions.

scholarly journals INTERNATIONAL BUSINESS NEGOTIATION STRATEGIES BASED ON BARGAINING POWER ASSESSMENT: THE CASE OF ATTRACTING INVESTMENTS

2016 ◽  
Vol 17 (6) ◽  
pp. 882-900 ◽  
Author(s):  
Kęstutis PELECKIS
Keyword(s):  
International Business ◽  
Bargaining Power ◽  
Scientific Literature ◽  
Negotiation Process ◽  
Business Negotiation ◽  
Negotiation Strategies ◽  
Analysis And Synthesis ◽  
Business Negotiations ◽  
Increasing Risk ◽  
Data Analysis Methods

At present business solutions are used for development and implementation of negotiating strategies for international business, which are not universally suitable for business development in all situations in context of globalization, with current challenges, which are characterized by increasing risk, uncertainty and cultural differences. The purpose of the research is to provide a theoretical model for developing and implementing international business negotiation strategies, based on bargaining power assessment, as well as to conduct an experiment and test the suitability and adaptability of the developed model in an international business negotiation situation – in case of attracting investments. Research methods – scientific literature analysis, comparative, logical analysis and synthesis, comparative and generalisation methods, mathematical and statistic data analysis methods. According to the results, the developed model can be used to reinforce international business negotiations and electronic business negotiations, as an independent systemic unit of the negotiation process (a measure that is autonomous or requires only partial intervention of the negotiator).

scholarly journals Cultural Differences in Interaction Goals between Malaysia-China Business Negotiations

2021 ◽  
pp. 116-121
Author(s):  
Soo Hoo Pin Lick ◽  
Hassan Abu Bakar
Keyword(s):  
International Business ◽  
Cultural Awareness ◽  
Practical Implication ◽  
Cultural Dimensions ◽  
Future Research ◽  
Cultural Norms ◽  
Business Negotiation ◽  
Digital World ◽  
Business Negotiations ◽  
Interaction Goals

As the world is getting more globalized due to digital world, cross-cultural business negotiation is getting more in demand and challenging compared to those days where most business involved mostly in domestic business negotiations. With such situations and environments, cultural intelligence is important to be learned. As many Chinese and Malaysian companies seeking the role as importer-exporter, international business negotiation skills and cultural awareness are much needed skills to meet the interaction goals of both parties. A lack of cultural awareness will lead to miscommunication and rejection from the other party during negotiations. The participants in this studies involve Chinese and Malaysians who are involved in real negotiation world. This paper used GLOBE model to compare the cultural dimensions between Malaysians and Chinese business negotiators. Questionnaires were sent by emails and through WeChat Apps to the participants who are based in China and Malaysia. Based on analysis, we found that between Chinese and Malaysian business negotiators, cultural norms influence the interaction goals between the two groups. As to the future research, we suggest that future research be directed towards developing theories and also focus on the application of GLOBE model in different research fields across different cultures, such as halal business management, digital marketing and business entrepreneurship. This study has contributed in enriching the knowledge on international business negotiations between Malaysia and China business literature context. On practical implication, this study has strengthen the negotiators’ knowledge on cultural norms of both Malaysians and Chinese in order to build better relationships with their business partners

scholarly journals Competition assessment in business negotiations under distorting market conditions

2020 ◽  
Author(s):  
Kęstutis Peleckis ◽  
Valentina Peleckienė ◽  
Bahman Peyravi ◽  
Edita Leonavičienė
Keyword(s):  
Market Power ◽  
Analytical Framework ◽  
Theory And Practice ◽  
Assessment Process ◽  
Bargaining Theory ◽  
Market Conditions ◽  
Potential Harm ◽  
Business Negotiation ◽  
Business Negotiations ◽  
Competitive Rivalry

The competition assessment process provides an analytical framework for business negotiation entities to mitigate, or avoid potential competition problems. It helps to identify possible alternatives that may reduce, or eliminate potential harm to competition. Limiting the number of business negotiation enti-ties leads to the risk that market power will be created and competitive rivalry will be reduced. The aim of the article is to analyze the theory and practice of developing and implementing business negotiation strat-egies in a complex way, also to evaluate the level of competition in distorting market conditions. The ob-ject of the study is to strike a balance at the level of competition in business negotiations, under distorting market conditions. The scientific problem is that bargaining theory lacks tools to assess and balance the level of competition between participants in market conditions that distort competition.

The Application of Vague Language in International Business Negotiations from a Cross-cultural Perspective

2017 ◽  
Vol 7 (7) ◽  
pp. 585 ◽  
Author(s):  
Jing Zhang ◽  
Yeli Shi
Keyword(s):  
International Business ◽  
Economic Globalization ◽  
Cross Cultural ◽  
Cultural Perspective ◽  
Great Role ◽  
Appropriate Use ◽  
Business Negotiation ◽  
Negotiation Strategies ◽  
Business Negotiations ◽  
Vague Language

in the environment of economic globalization, business negotiation becomes more and more frequent than ever. International business negotiation has a significant role in international business trade. There are many factors that can affect the negotiation, including language, culture, negotiators, and negotiation strategies. Language as an important tool plays a great role in the negotiation strategies. It is commonly held that precise language should be used in business negotiations in order to avoid misunderstanding. However, people ignore the fact that language itself is vague in essence. Negotiators unavoidably use vague language in business negotiations, for vague language can be used as a kind of politeness strategy. Appropriate use of vague language will make the negotiation go smoothly, and avoid the conflict of business negotiation so as to achieve the purpose of cooperation.

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