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A Negotiation-Oriented Model of Auditor-Client Relationships

Author

Listed:
  • Gary Kleinman

    (New Jersey Institute of Technology)

  • Dan Palmon

    (Rutgers University)

Abstract

The increasing frequency and complexity of inter-organizational relationships suggests that inter-organizational negotiations should represent an area of increasing concern to management and academicians. Unfortunately, there is little theorizing about, nor study of, these negotiations. The few extant models are heavily influenced by models of individual negotiating styles that are then raised to the inter-organizational level with minimal change. The model developed here attempts to provide a framework for understanding the context of these inter-organizational negotiations by identifying and illuminating factors that influence the outcome of interactions in various long-term supplier relationships. Factors discussed include dynamic and stable environments, organizational cultures, role involvement, previous interactions between the individuals and organizations, and the unique characteristics of the decision-making processes that characterize the specific parties. As a framework for our presentation, we draw upon Kleinman and Palmon's (1999) theory of audit firm-client firm relationships, which is based on Kahn et al.'s (1964) Role Episode Model and Merton's (1966) Role Set Model. This paper incorporates Shakun's (1988) theory of evolutionary system design. The inclusion of the latter improves upon Kleinman and Palmon's work by first providing a better motive for the interaction between the parties, and second by shedding further light on the dynamics of the negotiation process.

Suggested Citation

  • Gary Kleinman & Dan Palmon, 2000. "A Negotiation-Oriented Model of Auditor-Client Relationships," Group Decision and Negotiation, Springer, vol. 9(1), pages 17-45, January.
    • Handle: RePEc:spr:grdene:v:9:y:2000:i:1:d:10.1023_a:1008785122946
    DOI: 10.1023/A:1008785122946
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    References listed on IDEAS

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    1. Dean Tjosvold, 1998. "Using and Valuing Accounting Information: Joint Decision Making Between Accountants and Retail Managers," Group Decision and Negotiation, Springer, vol. 7(4), pages 327-345, July.
    2. Levinthal, D.A. & Fichman, M., 1991. "Honeymoons and the Liability of Adolescence : A New Perspective on Duration Dependence in Social Organizational Relationships," GSIA Working Papers 1991-34, Carnegie Mellon University, Tepper School of Business.
    3. Fogarty, Timothy J., 1996. "The imagery and reality of peer review in the U.S.: Insights from institutional theory," Accounting, Organizations and Society, Elsevier, vol. 21(2-3), pages 243-267.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Anna Che Azmi & Yuen Hoong Voon, 2016. "The Effect of Clients’ Auditing Experience and Concession-Timing Strategies on Auditor-Client Negotiations," Group Decision and Negotiation, Springer, vol. 25(5), pages 1049-1069, September.
    2. Danielle E. Warren & Miguel Alzola, 2009. "Ensuring Independent Auditors: Increasing the Saliency of the Professional Identity," Group Decision and Negotiation, Springer, vol. 18(1), pages 41-56, January.
    3. Gary Kleinman & Pamela Strickland & Asokan Anandarajan, 2016. "The Accounting Court: Some Speculations on Why Not?," Group Decision and Negotiation, Springer, vol. 25(4), pages 845-871, July.
    4. Gary Kleinman & Betsy Beixin Lin, 2017. "Audit regulation in an international setting: Testing the impact of religion, culture, market factors, and legal code on national regulatory efforts," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 14(1), pages 62-94, February.
    5. Waymond Rodgers & Andrés Guiral & José A. Gonzalo, 2019. "Trusting/Distrusting Auditors’ Opinions," Sustainability, MDPI, vol. 11(6), pages 1-16, March.
    6. Gary Kleinman & Dan Palmon, 2023. "A Values-based Approach to Understanding Corporate- Stakeholder Interactions," Group Decision and Negotiation, Springer, vol. 32(2), pages 301-326, April.

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