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Scholarly research provides few insights into how integrating the western values of individualism and low power distance with the eastern values of collectivism and high power distance may influence cross-cultural conflict management. Following the framework of the theory of cooperation and competition, the purpose of this paper is to directly examine the impacts of organization-level collectivism and individualism, as well as high and low power distance, to determine the interactive effects of these four factors on cross-cultural conflict management.

This is a 2×2 experiment study. Data were collected from a US laboratory experiment with 80 participants.

American managers working in a company embracing western low power distance and eastern collectivism values were able to manage conflict cooperatively with their Chinese workers. Moreover, American managers working in a company valuing collectivism developed more trust with Chinese workers, and those in a company culture with high power distance were more interested in their workers’ viewpoints and more able to reach integrated solutions.

This study is an interdisciplinary research applying the social psychology field’s theory of cooperation and competition to the research on employee-manager, cross-cultural conflict management (which are industrial relations and organizational behavior topics, respectively), with an eye to the role of cultural adaptation. Furthermore, this study included an experiment to directly investigate the interactions between American managers and Chinese workers discussing work distribution conflict in four different organizational cultures.

Given the susceptibility of cross‐cultural interaction to misunderstandings and disagreements, conflict management may be especially useful for helping employees develop quality leader relationships with their foreign managers. One hundred and eleven Chinese employees from various industries in Shanghai were interviewed on specific incidents where they had a conflict, defined as incompatible actions, with their Japanese manager or American manager. A qualitative analysis of the incidents and statistical tests of the data supported the hypotheses that a cooperative approach to conflict, rather than competitive or avoidance approaches, help Chinese employees and their foreign managers strengthen their relationship and improve their productivity. Cooperative conflict management may be an important way to overcome obstacles and develop an effective leader relationship across cultural boundaries.

This study seeks to empirically examine the impact of goal interdependence and leader‐member relationship on cross‐cultural leadership in joint ventures in China.

The research question is how to facilitate leader‐member relationships between foreign managers and Chinese employees in joint ventures in China. Two hypotheses were generated. This study applies the theory of cooperation and competition and the theory of LMX to develop responses to the research questions. Completed survey questionnaires were analyzed on a valid sample of 199.

Results supported the theorizing that cooperative goals between managers and employees can strengthen their leader‐member relationships, which in turn facilitate cross‐cultural leadership. The results also extended this theorizing to cross‐cultural settings.

Although the theory of cooperation and competition and the theory of LMX were developed in the West, they could be useful in Chinese contexts for understanding cross‐cultural leadership.

Foreign managers working in joint ventures in China who develop strongly cooperative goals may be able to develop high quality relationships that in turn promote employee commitment and performance.

This study provides overall support for the theory of cooperation and competition and the theory of LMX. Although developed in the West, they have been found useful for predicating behavior in Chinese contexts regarding cross‐cultural leadership.