International business negotiation tendencies of Finnish negotiators: A comparative study of face-to-face negotiation versus video negotiation

It is well understood that more companies are entering international business due to increased globalization and fierce competition. All companies worldwide have had restricted face-to-face contact and negotiation since the beginning of the COVID-19 pandemic. Various online tools have emerged that facilitate business-to-business video conferencing to conduct international business, filling a need and perhaps contributing to a globally accelerated transition from face-to-face to video conferencing. Previous studies have analyzed the impact of different countries' cultures on negotiators' behavior. However, there is no prior understanding of the impact of communication mode (face-to-face vs. video) on the behavior of negotiators involved in international business negotiations (IBNs). Thus, this study aimed to investigate the role of communication mode in the negotiation elements of Finnish negotiators involved in IBNs. To achieve this goal, a theoretical framework for the research was developed by combining face-to-face and video communication modes with Salacuse's (1998) ten-element negotiation model. These elements include negotiation goals, attitudes, personal style, communication style, time sensitivity, emotionalism, agreement form, agreement building, team organization, and risk-taking. For this study, four new elements were developed as complementary to the Salacuse model; information sharing, negotiation speed, trust, and negotiation satisfaction. This thesis applied a methodological philosophy of positivism and hence a deductive approach. The developed framework was tested using web-survey quantitative data collected from twenty-eight Finnish companies executives involved in face-to-face and online IBNs. Confirmatory factor analysis (CFA) was run to ensure that constructs measures were reliable and valid, followed by an independent t-test to determine the effect on Finnish negotiators' behavior in IBNs. The results revealed a statistically significant difference between face-to-face and video IBNs across seven of fourteen negotiation elements. There was an extremely strong significant difference in personal style, negotiation speed, and negotiation satisfaction. In addition, a very strong significant difference was observed in: goal, risk-taking, and trust. Finally, a strong significant difference was observed in emotionalism behavior. No statistically significant difference was observed in the remaining elements. Based on the findings, the study's practical implications suggest that the mode of communication should be taken into account in business negotiations and how it may affect the negotiating behavior of negotiators. The results emphasize the importance of considering business negotiation communication modes when examining different negotiation behavior elements.