Pattern’s negotiations and bargaining in the supply chain based on the Nash Bargaining Solution

Document Type : Research Paper

Authors

1 Assistant Professor, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Mazandaran, Iran

2 P.h.D Student, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Mazandaran, Iran

10.22034/jbar.2024.21202.4399

Abstract

EXTENDED ABSTRACT
Introduction
In the bargaining process, most people follow their usual procedures when faced with issues and disputes and seek to find a solution that satisfies the interests of the parties. But in this process, problems such as lack of effective interaction, instability of decisions, lack of clarity in the understanding of parties and specialties are often seen. Bargaining and negotiation in the supply chain are essential components of decision-making processes that have wide-ranging implications for various individuals engaged in the global business landscape. With increasing emphasis on achieving fair outcomes and efficient allocation of resources, the application of game theory, especially the Nash negotiation solution, has attracted more attention in the field of supply chain negotiations. As global markets become more complex and intertwined, understanding the dynamics of supply chain negotiations is essential for organizations to optimize their operations. In dealing with complex issues and a large number of people and different aspects, Nash negotiations allow the parties to reach agreements that satisfy all parties in the shortest possible time. The Nash negotiation solution developed by Nash (1950) provides a powerful framework for analyzing negotiations and incorporates the concept of "fair sharing" between the parties involved. This tool has proven to be valuable for modeling and understanding negotiation processes in supply chains. By considering individual preferences, relative negotiation power and feasible agreements, Nash's negotiation solution tries to establish optimal and fair results. Understanding the application and implications of the Nash negotiation solution in supply chain negotiations can provide valuable insights in reaching mutually beneficial agreements and enhancing cooperation between supply chain partners. However, in the field of negotiations and bargaining, there have not been enough studies and researches regarding the use of the "Nash" negotiation solution; Therefore, the main purpose of this research is to use the solution of "Nash" negotiations to improve the bargaining process, so that by examining the effects of "Nash" negotiations on the quality of decision-making, the psychology of people and the agreements reached, a pattern of improvement and improvement in the bargaining process in the supply chain can be obtained.
Methodology
From the perspective of the research strategy, this research is a qualitative method, and from the perspective of the paradigm, it is classified as an interpretive paradigm. In this method, the researcher uses the method of qualitative data analysis, which is specifically used in this research, to make patterns. The meta-synthesis research method is one of the types of meta-study methods and is considered a qualitative research method. In fact, meta-synthesis is a type of qualitative study that uses the information of findings extracted from other studies in the field of a related topic. In the meta-synthesis method, the researcher combines the secondary data of the results of other studies to respond to the results of his study and obtains new results. The current research includes two primary stages: initial planning and implementation of a systematic review, followed by reporting and publication of findings, and finally a model that shows the improvements that can be made in the supply chain bargaining process by adopting Nash's approaches with the meta-synthesis is presented. In order to achieve the goal of the research, the seven-step method of Sandelowski and Barroso was used. Sandelowski and Barroso's method is a structured model for qualitative text analysis and extracting concepts. This method uses a seven-step model for document analysis. The main method of data collection is also library studies.
 Result and discussion
In order to evaluate the reliability of the interview, the within-subject agreement method was used with a two-pass code, in which a researcher colleague (coder) who was a PhD student registered. Collaboratively, the researcher and research associate coded the four articles and subsequently calculated the percentage of within-theme agreement, indicating the agreement between the two transfer codes. To facilitate the coding process and save time, a checklist containing two values (yes/no) was used to cover the entire task or all necessary items. When the opinions were obtained through the formula presented below, the kappa coefficient of agreement was calculated, a numerical value between 1 and +1. A rate close to 1 indicates high reliability, while a rate close to -1 indicates disagreement and a rate close to zero indicates no reliability. A kappa coefficient between 0.6 and 0.8 indicates good reliability. In the context of the current research, a part of the article was presented to two professors and based on their evaluation and comments, the kappa coefficient (K) was calculated using the P0-PE formula divided by P0-1, and its value was 0.84. The results showed that there was a total of 6 dimensions, 18 components and 90 indicators that showed changes in terms of repetition and frequency.
Conclusion
The findings of this study showed that Nash negotiations are effectively able to form agreements that support a fair balance between the negotiating parties. This equality resulting from Nash solutions, in addition to strengthening long-term cooperation, also plays a role in reducing potential negotiation tensions. Structuring the negotiation based on the theoretical framework of Nash negotiations paves the way for the development of more favorable and insightful relations between the parties. Psychologically, Nash techniques can help reduce negative emotions and increase mutual trust. Negotiators who feel their interests are properly understood and established are more willing to cooperate and enter into long-term contracts. This issue not only affects the individual relationships between experts, but also has an effect on the entire structure and performance of the supply chain. Nash solutions also improve the quality of decisions. By focusing on sustainable and win-win outcomes, parties are more motivated to explore innovative and progressive solutions. Innovative perspectives can lead to improved processes, reduced costs, and increased efficiency and effectiveness. At the theoretical level, the application of Nash solutions in this study has benefited from the realistic simulated dynamics that we have achieved a more accurate understanding of the complex dynamics of supply chains. Understanding these complexities has enabled researchers and managers to implement more insightful strategies to guide negotiations and find efficient and successful agreements

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