Too Much Adaptability? How Strategic Adaptability Shapes Negotiation Performance

Abstract: Strategic adaptability, a negotiator’s competence to shift strategies in response to informational cues, is considered key to successful performance. Empirical evidence on when and for whom such adaptations are beneficial remains limited. This preregistered study examined the relationship between strategy adaptations and individual outcomes using data from 134 dyadic, multi-issue negotiations. We hypothesized a too-much-of-a-good-thing effect, suggesting that adaptations are beneficial for individual outcomes up to a certain tipping point. To test this, we used APIM to examine actor and partner effects on individual performance. The results revealed a positive linear association between negotiators’ own adaptations and their performance, with no evidence of a curvilinear effect. Adaptations were generally reciprocal, as they coincided with increased adaptation by the opponent. However, this reciprocity could backfire as partner adaptability was negatively associated with individual performance. Additionally, content-based adaptations were associated with improved negotiation performance, whereas opponent-based adaptations were not.

Keywords: Negotiation Process; Negotiation Outcome; Negotiation Effectiveness; Strategic Adaptability; Integrative Strategies; Distributive Strategies; Too-Much-of-a-Good-Thing Effect