Power and negotiation: Review of current evidence and future directions

Michael SCHAERER, Singapore Management University
Laurel TEO
Nikhil MADAN
Roderick I. SWAAB

Abstract

This review synthesizes the impact of power on individual and joint negotiationperformance. Although power generally has positive effects on negotiators’individual performance (value claiming), recent work suggests that more power isnot always beneficial. Taking a dyadic perspective, we also find mixed evidencefor how power affects joint performance (value creation); some studies showthat equal-power dyads create more value than unequal-power dyads, but othersfind the opposite. We identify the source of power, power distribution, andcompetitiveness as critical moderators of this relationship. Finally, wesuggest that future research should move beyond studying alternatives in dyadicdeal-making, identify strategies to overcome a lack of power, increaseempirical realism, and take a more dynamic view of power in negotiations.