Direct and interaction effects of formal and informal institutions on interorganizational conflicts: evidence from Chinese firms

Abstract

Purpose This study aims to examine the effects of formal and informal institutional factors (i.e. marketization and guanxi culture) on interorganizational conflicts (IOCs) and their interaction effects. Design/methodology/approach Drawing on IOC literature and an institution-based view, the authors use a sample of 12,022 Chinese firms from the World Bank’s Investment Climate Survey. A zero-inflated negative binomial regression was used to analyze the data. Findings The results suggest that guanxi culture has U-shaped effects, but marketization does not negatively affect IOCs. Furthermore, a low level of marketization weakens the U-shaped effect of guanxi culture on IOCs. A moderate level of guanxi culture can enable marketization to reduce IOCs. Practical implications This study provides a better understanding of the management of IOCs. Managers should fully understand the differential effects of the institutional environment in different regions and their interactions by adopting different response strategies. Originality/value This study enriches the literature on IOCs’ antecedents and contextual factors by examining the institutions’ direct and interaction effects on IOCs.

The interaction effect of trust and contract on dispute negotiation strategy: evidence from the Chinese construction industry

“…The results remind us of the contextual-dependency in conflict management. When it comes to other cultural contexts, the broader formal and informal institutions would possibly help to understand conflict management (Wang and Liu, 2022).…”

“…It is a human factor at inter-personal level, and is empirically tested to influence inter-organizational relationships and behaviors (Qian et al , 2019). Exchange partners are more likely to turn to Guanxi for solution rather than contractual coordination provisions because Guanxi may provide more flexibility in terms of time and costs (Wang and Liu, 2022). Guanxi is a typical example of inter-personal factor that influence inter-organizational relationships in this specific research context.…”

“…Second, the formal institutions in China are relatively underdeveloped, which result in the incompleteness and imperfection of contractual governance. Simultaneously, the informally relational governance, such as trust and relational norms, plays an important role in Chinese people's social life, especially in dealing with inter-personal and inter-organizational relationships (Wang and Liu, 2022). Therefore, the particular context can provide sufficient data and allows for in-depth analysis, which would possibly shed new light on the understanding of the interaction of governance mechanisms.…”

The effect of NPD complexity on NPD performance via inter-organizational collaboration and conflict

“…Examining inter-organizational conflict within the realm of new product development (NPD) is imperative due to several compelling reasons. Frist, inter-organizational conflicts arise in NPD projects as collaborations between diverse organizations introduce complexities stemming from divergent goals, priorities, and work methodologies (Oliveira and Lumineau, 2018; Um and Kim, 2018b; Um and Oh, 2021; Wang and Liu, 2022). Addressing these conflicts is pivotal to sustaining effective collaboration and ensuring project success (Bai et al ., 2016; Palmatier et al ., 2006).…”

“…Conflict is known to have a negative impact on team performance, productivity, and organizational satisfaction (Li et al, 2022;Oliveira and Lumineau, 2018;Razinskas et al, 2022;Todorova et al, 2022;Um and Oh, 2021;Wang and Liu, 2022;Zhang et al, 2023). From a resourcebased view, inter-organizational conflict is regarded as detrimental to the performance of new product development (NPD) initiatives because it leads to inefficient resource allocation, suboptimal resource utilization, and the depletion of critical resources necessary for successful NPD outcomes (Fredericks, 2005;Yan and Wagner, 2017).…”