Managing Others’ Reactions in Strategic Network /Alliance Negotiations: Triumph of the Nerds

This paper presents recent reformulations or extensions of strategic negotiation and illustrates their application to network/alliance negotiations via a documentary of the history of the personal computer: “Triumph of the Nerds” (Cringely 1996). Two core concepts are an overarching dual concerns model of strategic (style) choice and the three-pronged formula for changing mindsets during the process. The dual concerns are for the (1) substance of the deal (e.g., price, quality, or negotiator reputation) and (2) parties’ relationship (e.g., their interdependence or working relationship). The dual concerns help a strategic negotiator resolve the negotiator’s basic dilemma: the extent to which they should compete or force change versus jointly problem solve or foster change. Co mpeting or forcing tend to harm or destabilize relationships, while collaborating or fostering normally stabilize or improve them. A critical composite index of the parties’ working relationship comprises respect, trust, and commitment to uphold the deal. Key moderating variables may deflect from the style chosen via the standard dual concerns model. They include negotiator (1) control or influence over organizational decision making, (2) personality, and (3) reward structure, as well as (4) culture, (5) norms of professional conduct, and (6) negotiation dynamics (e.g., individual versus representative). Organizational influence often involves network analysis (Watkins 2002). Where negotiator influence is high, their personality or reward structure can shape negotiations and, of course, others’ reactions (Fisher 2007c ). The three-pronged formula involves (1) demonstrating a performance gap or major problem (to plant the seed of doubt), (2) threatening or actually using a sanction (to play on worst fears), and (3) providing incentives to change (to induce closure) (Fisher 2007a). I illustrate the application of such concepts to managing others’ reactions via Cringely’s (1996) documentary. The two segments concern the crucial strategic negotiations that made Microsoft what it is today and Apple’s proprietary graphical user interface. 1Edward George Fisher is at the University of Alberta: [email protected]. 2 Edward George Fisher