Negotiating Municipal Merger

Abstract

This article contributes to organizational research by describing the format and space of negotiation arenas – temporary arenas with diverse social order characteristics. The article also contributes to our understanding of the dynamics of different logics of negotiation. We compare two cases from the Norwegian Local Government Reform. The empirical phenomena of a negotiation arena, where municipalities negotiate potential mergers, provides relevant knowledge. Results from the study show that, despite similar conditional factors, we find significant differences in how the municipalities approach and organize the process, how it evolves and how it ends. We argue that the motivation and design of the negotiation arena not only affect the dominating logic of negotiation through the processes, but also the foundation for any potential mergers. Logics of negotiation are related to the initial characteristics of the negotiation arena, but also become an important variable in the development of this negotiation arena. In this way, the article illustrates a two‐way interaction between social order and logics of negotiation, and shows why negotiation arenas differ and change over time.