Hostile behavior and profit in virtual negotiation: A meta-analysis

Virtual negotiations are expected to differ from face-to-face negotiations in terms of both negotiator behavior and outcomes. Nonetheless, competing theories and mixed results characterize this literature. This paper meta-analytically reviews studies that compared face-to-face negotiation with virtual negotiation (e.g., audio, email/text, video-conferencing). Competing predictions from psychological distance theory and the barrier effect perspective were tested. Overall, results supported the psychological distance theory in that face-to-face negotiations were less hostile and resulted in higher profit than virtual negotiations. Three moderators (negotiation mode, anonymity in virtual negotiation, and further interaction within the experiment) were hypothesized to impact virtual negotiation. While some moderators were significant, they did not completely account for findings across all studies. Results and discussion provide a note of caution for individuals embracing e-business and conducting Internet negotiations as well as suggestions for future research.