Abstract

This paper aims at investigating the reciprocal relationship between how a firm negotiates and its strategic positioning. We pose the following research question: how does the strategic positioning of a firm impact its negotiation practices and how does negotiation influence strategy implementation? We reviewed both the literature in strategy and negotiation, integrating our findings under the theoretical framework of dynamic capabilities. To unveil the intricate relationship between our two fields of interest, we use Ryanair as a case study, as it 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.