This paper aims to develop and test an integrative model of the relationship between affective conflict and firm performance considering the control effects of four contextual variables, namely, decision motive, firm size, type of ownership and environmental hostility.
This paper focuses on empirical data gathered from the Egyptian manufacturing sector. The measures of this study enjoy a significant degree of reliability and validity.
The results suggest that affective conflict is a significant predictor of firm performance.
The most serious limitation of the study is that data on the study variables are collected from one respondent in each firm. Another important limitation is that different kinds of conflict are not examined in order to explain the different roles which they can play in strategic decision making (SDM).
The paper contributes to knowledge in the area of SDM by developing a richer model of affective conflict in a region, i.e. Africa and the Arab world, where little research can be found.
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