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Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Virtual Negotiations: Intended and Unintended Interactions with Incentive Schemes

Virtual Negotiations: Intended and Unintended Interactions with Incentive Schemes
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Author(s): Ralph H. Greenberg (Temple University, USA), Penelope Sue Greenberg (Widener University, USA) and Sakthi Mahenthiran (Butler University, USA)
Copyright: 2007
Pages: 2
Source title: Managing Worldwide Operations and Communications with Information Technology
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59904-929-8.ch354
ISBN13: 9781599049298
EISBN13: 9781466665378

Abstract

Despite a substantial literature concerning the impact of computer-mediated communication (CMC) on decision-making, the potential interaction with an organization’s management control system has received little attention. In this study, we use social presence, media richness and media naturalness theories to develop hypotheses concerning the interactions of communication medium with the incentive schemes, a ubiquitous aspect of management control systems. Hypotheses concerning the intended interactions of increased profit and unintended interaction of reduced cooperation will be presented. The results of a laboratory experiment examining the effects of using face-to-face negotiations versus virtual negotiations where buyer-seller dyads determine the price and quantity of transferred goods will be presented. Preliminary results indicate that there is a significant interaction between communication medium and incentive scheme on the measured outcomes.

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