How BATNAs perception impacts JVs negotiations

Purpose – In light of the inconclusive findings in literature, the aim of this paper is to answer the question: how can negotiation behavior be explained in a situation of power imbalance?Design/methodology/approach – Based on Kim et al., the paper proposes a theoretical model that is empirically studied through a case study.Findings – Power relationship is a key contextual factor in determining negotiation behavior in joint ventures (JVs), but it has to be defined more in terms of the perceived value of the alternatives rather than the amount of available better alternatives to a negotiation agreement (BATNAs). Thus, when a partner looks to gain access to knowledge (market, technology, etc.) about the counterpart, although it has a greater number of BATNAs, they perceive a situation of mutual dependency.Practical implications – Understanding how the negotiating context affects behavior is crucial for firms to anticipate the reactions and behavior of their counterparts and thus display suitable behavior t...