ANALYSIS OF INFLUENCES ON BUYER-SUPPLIER NEGOTIATION

• Main Authors: Božidar Lenarčič, Franc Brcar
• Format: Article
• Language: English
• Published: CEOs Ltd. 2014-05-01
• Series: Innovative Issues and Approaches in Social Sciences
• Subjects: Supply Chain; Buyer; Supplier; Negotiation
• Online Access: http://www.iiass.com/pdf/IIASS-2014-no2-art05.pdf

The purpose of the article is to analyze negotiation between buyers and suppliers and to identify factors that influence the direction and result of negotiation. It is important that buyers and suppliers preserve the partnership despite negotiations. In the theoretical part of the study relevant literature is examined. The empirical part contains two methods (1) a qualitative method: three interviews with buyers (purchasing agents in one organization) and three interviews with suppliers, and (2) a quantitative method: a survey with twenty buyers and twenty suppliers. The result of the qualitative analysis was the basis for creating the questionnaire, which was used for quantitative analysis. Results of the quantitative analysis were factors that influence buyer-supplier negotiation. Results were calculated using chi-square tests and Wilcoxon rank-sum tests. Negotiation is an interactive process between two or more parties wishing to obtain a favorable outcome. The entire society can obtain a great deal regarding mutual understanding and conflicts resolutions as well as achieving the objectives in negotiation at the same time. The research is unique in terms of the combination of methods used and obtaining balanced data between buyers and suppliers.