Abstract

This paper investigates the potentially reciprocal relationship between negotiation and
corporate strategy, with the aim to start answering the following two questions: how does the
strategic positioning of a firm impact its negotiation practices and how does negotiation
influence strategy implementation? We assemble literature in strategy with research in
negotiation, focusing on the concepts of the integrated approach to negotiation and dynamic
capabilities. To unveil the intricate relationship between our two fields of interest, we use
Ryanair as a case study, as this company has built a unique negotiation approach, based on its
market power, which stands at the roots of its competitive advantage. This has implications
for both practice and research, as an integrated study of negotiation and strategy could lead to
a better understanding of the strategy making process and its foundations for success.