Negotiating across languages: how self-efficacy shifts from native ease to foreign insights

Abstract

Purpose Extending dual-process theory to negotiation contexts, this study aims to examine how using a foreign versus native language influences negotiators’ self-efficacy, strategy use and negotiation outcomes. Design/methodology/approach The authors used one face-to-face negotiation and two experimental scenarios studies (n = 650) with German and French dual-language speakers. Analyses included both individual-level and dyadic modeling (actor-partner interdependence models) to examine intra- and interpersonal processes. Findings Across studies, negotiators reported higher self-efficacy in their native language but achieved better joint outcomes in their foreign language. Lower self-efficacy in the foreign language condition predicted superior joint outcomes, greater insight into counterpart priorities and increased use of cooperative strategies (problem-solving and compromising) by both actors and partners. Mediation analyses supported that foreign language use improved joint outcomes via enhanced insight. Research limitations/implications Findings are based on controlled simulations; future work should examine high-stakes, real-world negotiations and other language combinations. Practical implications Training negotiators to strategically use foreign languages can enhance perspective-taking and analytical engagement, promoting cooperation, mutual gains and more equitable agreements in multilingual and diverse workplace settings. Originality/value To the best of the authors’ knowledge, no prior research has jointly examined self-efficacy and negotiation outcomes while distinguishing between native and foreign language use. This study addresses that gap by isolating the psychological effects of language, holding culture constant and applying dual-process theory to explain how foreign versus native language use shapes self-efficacy, cognitive processing and negotiation behavior.