Negotiating at a distance: the impact of communication media and negotiator traits

Prior research has yet to provide a coherent theoretical framework explaining how communication media hinder or advance negotiation success, and many dated studies are unlikely to be relevant. This study aims to examine the impact of four communication media on negotiation outcomes. It also examines the potential moderating effects of the following negotiator characteristics: conflict management style, personality traits and indirect communication style. A total of 400 participants formed 200 dyads to negotiate a mixed-motive relational conflict through face-to-face (FTF) interaction, videoconferencing, audio call or synchronous text messaging. Linear mixed regression was used to assess the impact of communication media on non-economic outcomes of the individual negotiator and the moderating effect of negotiator traits. One-way and two-way analyses of variance were used to examine the impact of economic outcomes, as well as the moderating effect of negotiator traits, on negotiation dyads. The study found the synchronous text-based negotiations yielded poorer negotiation outcomes than other media. However, there were no significant differences in negotiation outcomes across FTF, video and audio negotiations, except for higher trust levels in FTF negotiations than video and audio negotiations, and higher value creation in audio than FTF negotiations. Importantly, the study revealed the moderating effect of conflict management style, indirect communication style and the personality traits of extraversion, conscientiousness, agreeableness and emotional stability. Specifically, dyads in which both negotiators had high assertiveness achieved lower joint value creation in FTF than audio and video negotiations. Furthermore, for dyads characterized by mismatched levels of extraversion, joint value creation was significantly lower in FTF negotiations than video and audio negotiations. Greater statistical power for negotiator traits’ effects on economic outcomes could have been achieved with a higher number of dyads. When choosing the most appropriate medium for negotiating a complex matter with no prior familiarity with one's counterpart, it is prudent to rely on FTF interaction if it is crucial to establish trust. On the other hand, synchronous text messaging is a poor fit in terms of both economic and non-economic outcomes. When economic outcomes such as joint value creation are important, audio communication may surpass FTF communication due to the potential for negotiators to focus better on the content of their negotiation. With regard to other economic and non-economic outcomes, FTF, video and audio modes are likely to lead to comparable outcomes. The choice of communication mode does matter for certain outcomes, but the most optimal mode may differ across negotiators. It is more crucial to understand the characteristics of the negotiators as they have been shown by this study to influence the impact of communication media on negotiation success. For instance, the FTF setting, while conducive for trust-building, may not lead to positive economic outcomes if the negotiators have mismatched extraversion levels or are both assertive in their conflict management styles. Leaner media, such as video or audio communication, may be more appropriate in this regard. The overall findings cast doubt on conventional media attributes frameworks such as media richness and task-media fit theories. These theories may have limited application only to synchronous text communication, which had significantly worse outcomes than the other three media. Social presence theory could explain FTF communication's positive effect on perceived trustworthiness of the counterpart. Unlike audio and video media, the in-person setting probably provides a unique environment to assess the counterpart using one's full range of senses. Crucially, the study has shed light on the unexplored moderating effect of negotiator traits. Notably, the prejudicial effect of assertive negotiation dyads on joint value creation in FTF negotiations adds further insights to earlier research on the communication orientation model.