Abstract

This paper aims at answering the following research questions: How does the strategic positioning of a firm impact its negotiation practices? And, how do negotiation skills, behaviors and abilities impact the strategy of a firm? Such questions have been overlooked by the two relevant bodies of literature: strategy and negotiation. By taking a cross-field approach, we combine concepts from both literatures in a theoretical framework based on the integrated approach to negotiation and dynamic capabilities. By presenting and analyzing the case of Ryanair, in terms of its strategy and its negotiation approach, we argue that a negotiation capability of the firm plays a major role for competitive advantage. Our findings show how Ryanair employs an idiosyncratic approach to all its negotiations. Such approach is intertwined with its strategy and the consequent strategic positioning in the market. We conclude the paper with implications for both practice and research; particularly we call for an integrated study of negotiation and strategy to better understand the strategy making process and its foundations for success.