Negotiations in the Digital Age – Effects of Communication Media and Information Reprocessability on Negotiator Trust

In spite of the growing prevalence of digital communication, online negotiations have a negative reputation. Revisiting this pessimistic view, we address effects of communication media and information reprocessability on interpersonal trust in dyadic negotiations. In doing so, we consider perceived risk, psychological distance, and social presence as mediating processes. Using an experimental study design with 320 participants, dyads were instructed to negotiate a work contract. Communication medium (face-to-face – video-conference) and information reprocessability (not videotaped – videotaped) were manipulated in a 2 x 2 between subject design with time (pre-negotiation trust – post-negotiation trust) as additional within subject factor. Contrary to previous research, negotiator trust did not differ as a function of communication media or information reprocessability. However, consistent with our hypotheses, results showed an indirect effect of communication medium on trust via social presence. Our findings suggest that online negotiations are possible without sacrificing interpersonal trust.