THE RELEVANCE OF BUSINESS NEGOTIATION IN BUILDING COMPETITIVE ADVANTAGE FOR CROATIAN MICRO ENTERPRISES

Abstract

Although the term small and medium-sized enterprises (SMEs) originally include micro, small and medium enterprises, the majority of literature looks at this sector as a homogeneous group. In general, there is insufficient research on micro-enter prises and previous work has failed to address micro-enterprises in the negotiation context. As a result, the negotiating behavior of micro-entrepreneurs is still poorly understood. Therefore, the aim of this paper is twofold. Firstly, our aim is to examine if the managers of micro-enterprises perceive business negotiations as a source of competitive advantage. Secondly, we aim to identify the underlying predictors of such perception. To this end, the survey was conducted among 132 managers of micro-en-terprises in Croatia. The multiple linear regression results reveal that negotiating frequency, negotiation skills development, and willingness to change have a significant and positive influence on managers’ perception of business negotiations as a competitive advantage. Finally, the paper adds to the literature by providing insights into the negotiating behavior of micro-entrepreneurs in Croatia.