The impact of different communication modes on trust and satisfaction in international business negotiation

COVID-19 has brought several disruptions in international business negotiations where different parties across borders must reconsider how they communicate with their counterparts. Firms involved in international business practices have adapted to such disruption and engaged with different practices to develop trust and negotiation satisfaction. Though prior research has widely investigated the impact of culture on international business negotiations, there is no prior understanding of the role of communication modes in developing trust and negotiation satisfaction. Therefore, the purpose of this research is to investigate the varying roles of different communication modes, that is, face to face and video conferencing on mutual trust and negotiation satisfaction. Empirical data collected through the web survey of 124 respondents involved in international business negotiations confirms significant differences in the level of trust and negotiation satisfaction. More specifically, we find that the level of trust and satisfaction was higher in face-to-face negotiations than in video negotiations. These findings have important implications for managers involved in international business negotiations.