Building Negotiator Trust Through Social Presence - Effects of Communication Media and Information Reprocessability on Trust in Negotiations

Despite growing prevalence of digital communication, computer -mediated negotiations have a negative reputation in scientific research. However, extant studies focused predominantly on lean communication technologies (e.g., email). We examined effects of communication media on trust and negotiation outcomes considering current-state technologies with rich information transmission (i.e., videoconferencing). Based on communication and trust theories, we expected that video-based as compared to face-to-face negotiations lead to lower trust due to perceptions of lower social presence, higher psychological distance, and higher risk in video conferences. However, we expected information reprocessability as technological feature to reduce risk perceptions and thereby the negative effect of communication medium. In a preregistered experimental study (n = 320), dyads negotiated a work contract. Communication medium (face-to-face - video conference) and information reprocessability (not videotaped - videotaped) were manipulated in a between-subject design with time (pre-negotiation - post-negotiation) as additional within -subject factor. Perceived risk, psychological distance, and social presence were measured as mediating processes. Consistent with our hypotheses, communication medium affected trust indirectly via social presence. However, the overall differences between communication media regarding trust, economic outcomes, and negotiation time were not significant. Together, the findings suggest that face-to-face and computer-mediated negotiations can yield quite similar results when using rich communication media.