The Effect of Negotiation Practices on the Relationship between Suppliers and Customers

This article examines the effects of negotiation practices, such as coercion and contract formality, on how suppliers and customers perceived the resulting business relationship. We conducted a purchasing negotiation simulation with students in a classroom setting in which participants competed for resources in a mock supply-chain context. The participants were surveyed at key stages of the ongoing negotiation in order to measure their behaviors as a customer–supplier relationship developed. The data were used to test several hypotheses developed from the marketing and purchasing literature. The hypotheses were analyzed using structural equation modeling.
Results demonstrated that the use of coercive techniques by negotiators during negotiation had a negative effect on satisfaction. In addition, the findings showed that, as expected, negotiators entering a negotiation with a cooperative orientation would tend to avoid the use of coercive practices during negotiation. The cooperative orientation also exhibited an unexpected positive effect on the formalization of the design of the contract between the parties. This study contributes to the current knowledge base focusing on the creation of agreements between companies and will, we hope, encourage the integration of suppliers and customers in an operating context within a supply-chain setting.     

The British Police Experience

[Editor's note] The following is the text Sir Eric St. Johnston delivered before the members of the Wichita Crime Commission at their 24th Annual dinner meeting on October 19, 1977. Sir Eric St. Johnston is formerly of the Chief of Scotland Yard and Chief Inspector of Constabulary for England and Wales. Among others, he is a Knight of the Order of the Thistle, holder of the Commander Order of the British Empire, the Queen's Police Medal and the French Legion of Honour and Croix de Guerre. In his text, Sir Eric mentions various similarities and and dissimilarities regarding the police practices of two countries. He is of the opinion that there are a great deal of advantages in a centralized police system as contrasted to the American counterpart. This statement is similar to the Editor's assertion made some ten years ago. [Re: “Police Reorganization As A Deterrent to Crime,” Police, Vol. 12, No. 14, March-April, 1978, pp. 73–79. See also Crime and Delinquency Abstracts, Vol. 16, National Clearinghouse for Mental Health Information of the U.S. Department of HEW, Public Service, 1969, p. 589] Readers will find Sir Eric's text not only timely, stimulating and provocative, but also insightful through his comparison of his long career in English police with that of the United States' police. Certainly his remarks provide police planners and policy makers with what should be most pressing needs for combating the ever-increasing crime in England, the United States, and the world as a whole. The permission to reprint was obtained from Sir Eric by the Editor personally. The Editor wishes to take this opportunity to thank Mr. Maurice W. Corcoran, Managing Director, and his colleagues Mr. Will G. Price, Jr., President; Mr. Jay W. Swanson, Chairman of the Board; Mr. J. A. Mull, Jr., Past President; and Mr. William L. Connelly, Chairman, Annual Dinner Committee; all of the Wichita Crime Commission for their efforts and cooperation.