Rookies as Risk – The Relationship between Professional Experience and Ethically Questionable Bargaining Tactics

Keywords: Negotiation, reputational risks, unethical bargaining tactics, professional experience

Abstract: Ethically questionable negotiation tactics can lead to short-term success, but, at the same time, pose high risks for long-term beneficial business relationships. We propose that experiences of relationships may shape parties’ risk perceptions of unethical bargaining tactics. In this sense, we argue that the extent of parties’ professional experience is highly relevant for how parties perceive reputational risks and, thus, ethical behavior at the bargaining table. The present research investigates the relationship of parties’ professional experience and their willingness to take the risks of ethically questionable tactics. Beyond that, we provide new insights in how professional experience moderates the positive link between individualism and questionable bargaining tactics. We analyze a dataset of 207 individuals with professional experiences ranging from 1 to 50 years. Our findings highlight the key role that professional experience plays in reducing reputational risks. We discuss managerial implications.