Conflicts

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IJCMA 20,3

Conflicts in top management teams and team/firm outcomes

The moderating effects of conflict-handling approaches

Jun Liu

School of Business, Renmin University of China, Beijing, PR China

228

Received 24 March 2008 Accepted 2 September 2008

Pingping Fu

Department of Management, Chinese University of Hong Kong, Hong Kong, PR China, and

Songbo Liu

School of Labor & Human Resources, Renmin University of China, Beijing, PR China

Abstract

Purpose – The purpose of this paper is to examine how different conflict-handling approaches moderate the relationship between conflicts and TMT as well as firm performance by adopting the Thomas terminology. Design/methodology/approach – CEOs, TMT members, and lower-level employees of 200 firms in the telecommunication industry in Mainland China were surveyed. Survey data collected from 123 CEOs, 442 TMT members, and 894 employees and archival data of firm performance were matched for hierarchical regression modeling (HRM) analyses. Findings – Results show relationship conflict reduces team cohesiveness and both relationship and task conflicts are negatively related to firm performance. With relationship conflict, the results show using compromising approach could help reduce its negative effects on TMT cohesiveness and firm performance; but avoiding either type of conflict will undermine both team and firm outcomes. Accommodating approach does not have significant moderating effect on conflict-outcome relationships. Research limitations/implications – The study reveals some interesting insights, but it does not include any contextual variables such as firm culture or team norms or climate which are shown to relate to both conflict types and conflict management approaches. Originality/value – By examining the interplay between conflict types and conflict management approaches, the paper offers interesting insights...