Time pressure in acquisition negotiations: Its determinants and effects on parties’ negotiation behaviour choice

Although negotiation literature suggests that time pressure influences negotiation behaviour, and in strategy literature, time appears as a key factor in acquisition formation, its impact on negotiation behaviour choice has not been the subject of a great deal of in-depth research. This paper focuses on the determinants of the amount of time pressure perceived by negotiation parties during acquisition negotiations and the impact on communication. The effect of cultural differences in both relationships is also analysed. The theoretical model proposed is explored by examining three acquisition negotiation cases involving Spanish firms. The evidence suggests that, contrary to expectations from a review of the literature, time pressure is not always associated with competitive negotiation behaviour. Experience, preparation and a concern for the post-negotiation atmosphere (a basis for value creation) are all moderating factors. In addition, in acquisition negotiations time pressure seems to be mainly determined by two factors: the need for secrecy and the perception of time availability. Negotiation time and time pressure appear as different concepts. Several issues to be analysed and contrasted empirically in future research are also proposed.