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Small Business Economics

, Volume 44, Issue 4, pp 737–757 | Cite as

Entrepreneurs’ negotiation behavior

  • Sabrina ArtingerEmail author
  • Nir Vulkan
  • Yotam Shem-Tov
Article

Abstract

This study provides first empirical results on entrepreneurs’ negotiation behavior. In a series of negotiation tasks, we compare persuasive behaviors and negotiation outcomes of entrepreneurs and non-entrepreneurs. Our results show that entrepreneurs make extensive use of emotions and arguments as means of persuasion. Due to their assertive behavior, they close fewer deals; however, when they close a deal, they make higher profits than non-entrepreneurs. These results demonstrate the relevance of studying entrepreneurs’ interpersonal interactions as determinants of entrepreneurial success and highlight the role expressed emotions and arguments play in this context.

Keywords

Negotiation Persuasion Arguments Emotions Strategic uncertainty Stakeholder interaction 

JEL Classifications

L26 C70 C93 

Notes

Acknowledgments

We appreciate helpful comments and suggestions from Anna Abratis, Katrin Burmeister-Lamp, Philipp Koellinger, Christine Lauritzen, Maria Minniti, Mirjam van Praag, Christian D. Schade, Joeri Sol, Noam Wassermann and the participants at the ERIM research seminar at Erasmus University, the ACE research seminar in Amsterdam, the Humboldt Research Seminar on Entrepreneurship and Innovation Management and the Oxford Summer Residence Week for Entrepreneurship Scholars. We also wish to thank Joern Block and two anonymous reviewers for their feedback and suggestions on an earlier version of the paper.

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  1. 1.Said Business SchoolUniversity of OxfordOxfordUK
  2. 2.Max Planck Institute for Human DevelopmentBerlinGermany
  3. 3.Department of EconomicsUniversity of California, BerkeleyBerkeleyUSA

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