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This study investigates the antecedents and outcomes of cognitive trust during the expansion phase in buyer–supplier relationships. It takes a global approach and examines cultural nuances between developed nation and emerging market firms by including participants from the United States, China, and Brazil. The results demonstrate the importance of trust in building social capital and the central role which trust plays in shaping business relationships in all studied cultural contexts. There are similarities and differences across countries. Results support relationship marketing theory by demonstrating the importance of conflict resolution, communication frequency, and social bond in building buyer–supplier relationships in the United States, which in turn increase cooperation between partners. Results also indicate that in China, social bond plays a much greater role in building trust, which in turn increases cooperation only to the extent that it serves as a mechanism to secure committed relationships. In Brazil, results show that conflict resolution is the most important factor in building trust. It also mediates the relationship between communication frequency and trust, as well as drives cooperation positively. Overall, trust is found to influence exchange of confidential communication and increases commitment between partners in all three countries.

The study aims to contribute to the literature on board behavior and performance in public sector organizations, by investigating conflicts as a fundamental and inevitable part of interactions between board members. Despite impressive advances in studying the behavioral dimensions of governing bodies, several gaps still remain in our knowledge, especially for public sector boards. These face specific challenges related to multiple, conflicting, and ambiguous goals.

Earlier studies identified four different types of conflict (affective, cognitive, interest, and authority conflicts). These were used to guide a systematic literature review considering the source and the nature of conflicts to classify and describe the state of knowledge on the topic.

Most academic contributions emphasized cognitive and interest conflicts, suggesting that solving them was essential to improve board performance and enable boards to create value. The results suggest the utility of broadening the perspective of the governing board role, moving beyond agency and institutional theory, taking into consideration resource dependence theory as an alternative perspective to investigate board roles and task expectations.

Understanding conflicts within public boards is an interesting challenge from several perspectives. First, it provides a deep look inside board decision-making processes using a behavioral perspective. Second, analyzing the nature and sources of conflict places boards in a better position to address complex political issues. Finally, resolving conflicts may lead boards to channel their energies into collaborative activities that stimulate best practices, facilitate mutual awareness, and generate commitment to cooperation inside and outside the boardroom.

Purpose – This chapter proposes a theoretical framework – the Conflict Templates Model – that depicts how people conceptualize their outcome interdependence in conflict and negotiation situations. We focus on perceptions of outcome interdependence in dyadic conflicts, with a particular emphasis on intergroup interactions.

Approach – Integrating ideas and concepts from game theory with social psychological principles, we propose that: (a) people's mental representations of interdependence are predictably constrained to a small set of mixed-motive games; (b) different motivational goals often lead group members to endorse different games to describe the same intergroup conflict; and (c) these interdependence perceptions influence parties' strategic behavior, and ultimately, their outcomes.

Findings – We review empirical evidence that provides initial support for each of these propositions and discuss future directions for research on the mental representation of conflict and negotiation.

Originality/value – We generate a number of novel predictions concerning the mental representation of conflict. We also discuss how identifying disputants' mental representations can help conflict managers devise effective strategies for managing and resolving conflicts.

Purpose – There are a number of ongoing debates in the organizational literature about conflict in groups and teams. We investigate two “conflicts about conflict” (i.e., two meta-conflicts) in the literature: we examine whether and under what conditions conflict in workgroups might be beneficial and we also explore the idea that group members may not always perceive the same levels of conflict.

Design/approach – We bring together the research and theorizing of the past 15 years to inform the current state of literature and move forward research on these conflicts about conflict. We examine and develop the two meta-conflicts to illustrate the importance of studying these ideas and to provide guidance for future research.

Findings – These two meta-conflicts in the conflict literature are important to investigate as conflict is a multifaceted construct that contains many dimensions that may influence group outcomes. We explore these two issues by briefly reviewing the literature on conflict and then highlighting some of the recent research on the conflict debate (i.e., is conflict constructive or destructive?) and conflict asymmetry in workgroups.

Originality/value – We identify interesting areas that future researchers could explore with respect to team conflict and conflict asymmetry.

In this chapter, we present a model for the process of value creation in power-differentiated groups and identify affect as a key moderator. We divide the value creation process into two key steps: information sharing and information processing. Further, we propose that high- and low-power group members each play a critical, albeit different, role in these processes. High-power group members are instrumental in establishing an environment that encourages all group members to share their unique information. Once that information is available, low-power group members use it to formulate solutions that create value. Further, we propose that the affective experience of each of these determines the extent to which they fulfill their role. If high-power group members are happy, they are more likely to create an open and sharing environment. If angry, they will likely squelch broad participation in information sharing. While low-power group members are naturally prone to effortful cognition, we propose that the more suspicious they are regarding the motives of those around them, the more carefully they will process available information.

We live in the Age of Knowledge, which is impelling us towards the Age of Imagination. The technological wave rises and with it rises a wave of change that will affect both the economy and society. When these two waves will reach the coast where knowledge meets ignorance, and how to ride them, are questions that require us to imagine the future. We must, therefore, embark on the vessel of imagination, leaving behind us the baggage of what we know and understand. Imagination is not just the springboard for ideas; it also acts to connect ideas in different ways that may blossom in the garden of an entrepreneurial renaissance. Symbols, metaphors and concepts that belong to our tacit knowledge come to light in our memory. It is from here that the imagination draws its lifeblood, broadening our horizons, inducing us to interact with others who may be the bearers of other cultures. Are we ready to engage in an imaginative learning process to join business with innovation and art? Are we prepared to design a wide-open white space where the actors of entrepreneurship, innovation and art can generate a constructive tension that will sweep away what appears to be mutual antagonism or incompatibility?

In this paper, we review the literature on pay variation (e.g., pay dispersion, pay compression, pay range) in organizations. Pay variation research has increased markedly in the past two decades and much progress has been made in terms of understanding its consequences for individual, team, and organizational outcomes. Our review of this research exposes several levels-related assumptions that have limited theoretical and empirical progress. We isolate the issues that deserve attention, develop an illustrative multilevel model, and offer a number of testable propositions to guide future research on pay structures.

Purpose – This chapter addresses the nature, formalization, and neural bases of (affective) social ties and discusses the relevance of ties for health economics. A social tie is defined as an affective weight attached by an individual to the well-being of another individual (‘utility interdependence’). Ties can be positive or negative, and symmetric or asymmetric between individuals. Characteristic of a social tie, as conceived of here, is that it develops over time under the influence of interaction, in contrast with a trait like altruism. Moreover, a tie is not related to strategic behavior such as reputation formation but seen as generated by affective responses.

Methodology/approach – A formalization is presented together with some supportive evidence from behavioral experiments. This is followed by a discussion of related psychological constructs and the presentation of suggestive existing neural findings. To help prepare the grounds for a model-based neural analysis some speculations on the neural networks involved are provided, together with suggestions for future research.

Findings – Social ties are not only found to be important from an economic viewpoint, it is also shown that they can be modeled and related to neural substrates.

Originality/value of the chapter – By providing an overview of the economic research on social ties and connecting it with the broader behavioral and neuroeconomics literature, the chapter may contribute to the development of a neuroeconomics of social ties.

Affective phenomena have become increasingly visible in the organizational behavior literature. Definitions and differentiation between affect, mood, and emotion are provided, based on psychological research in the affective sciences. Yet, both theoretically and empirically, these three constructs are still treated interchangeably. Given the operationalization confusion, there may be more findings on discrete emotions than actually reported. The body of knowledge on discrete emotions, namely their specific functions, could be better integrated and would enrich organizational research. Consequently, the challenge of achieving clarity in defining and operationalizing affect, mood and emotion is discussed.

Purpose – We apply theories of physical distance to better understand behavior and judgment in intragroup and intergroup negotiations.

Approach – By applying theories of physical distance to the domain of intragroup and intergroup negotiations we develop predictions about how large magnitudes of physical distance from in-group and out-group members should affect individuals' trust, interpretation of behavior, and willingness to use negotiation to resolve conflict.

Findings – Based on the current application of physical distance theories, several predictions are made for how increased distance should differentially impact the negotiation process when negotiating with in-group versus out-group members. Notably, it is predicted that because of increased schema-reliance associated with increased physical distance, negotiations with out-groups should have increased challenges.

Implications – The current chapter yields several interesting avenues for future empirical research. Moreover, we propose specific strategies that may be of use in reducing the potential harmful impact of increased physical distance in intergroup negotiations.

Value of the paper – We integrate several theories of physical distance to generate novel predictions for group negotiation.