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Demographic faultlines (i.e., potential subgroup splits based on demographic attributes) have been argued to have effects over and above those of diversity. Yet, faultlines, much like diversity, do not seem to have positive or negative effects on performance per se, but to be affected by contextual variables as well as intermediate outcomes, such as relationship conflict. Relationship conflicts, a major threat to teamwork, are particularly likely to arise between subgroups. Thus, with the objective to shed some light on why and how exactly faultlines impact group outcome, we investigate the effect of faultline strength and distance on performance through relationship conflict as well as the effect of faultline strength on performance via relationship conflict, contingent on the level of faultline distance. To test our hypotheses we used data gathered in a laboratory setting with 267 graduate students. Results provide strong support for the extension of the faultline model.

In a study of conflict in organizations, Lindenberg’s relational signaling theory is used to develop hypotheses on the impact of relationship strength, network embeddedness, and organizational change on social escalation. Social escalation is defined as the involvement of one or more third parties in a conflict. An empirical test is conducted with data on 67 conflicts involving 22 managers, gathered during three years of ethnographic fieldwork and a longitudinal network study in a management team of a German paper factory. Multilevel analysis indicates that strong ties between conflicting parties decrease the level of social escalation, whereas informal power advantage of one party increases the chances for social escalation. Both effects disappear over time. It is argued that the dissolving impact of relationships and networks is due to the disappearance of so-called solidarity frame-stabilizing activities in the firm. The results highlight the context-dependence of network effects and escalation processes.

We demonstrate the role of regulatory fit and moral emotions, that is, contempt and anger, in influencing conflict resolution between the headquarters and subsidiary boundary spanners. We develop a theoretical framework, which integrates literature on international business and headquarters-subsidiary relationships with regulatory focus, moral emotions, and conflict resolution. The chapter outlines the relationships between the regulatory focus of a headquarters’ boundary spanner, and his or her manner of engagement, conflict sensitivity, violation of code, moral emotions, and the way conflicts are resolved. The theoretical framework developed here provides a starting point for future research on bargaining processes between boundary spanners of a multinational corporation (MNC). This chapter is the first one to discuss regulatory focus, and moral emotions, in the contexts of a MNC headquarters-subsidiary relationship.

Purpose – This study draws on conflict management literature to examine service recovery by service organizations and its effect on the important marketing outcomes of customer perceptions of service quality (satisfaction, trust, attribution/praise, and value) which influences customer retention rate (loyalty) and thus firm profitability.Design/methodology – Data from 412 banking customers are first employed to test the study’s model, and the results are subsequently cross-validated using a sample of 421 health-care customers.Findings – In services marked by moderate to low customer contact (i.e., task oriented) such as banking, effective conflict management tends to increase customer satisfaction, trust, and perceived customer value. It also has a positive effect on customer loyalty, albeit mediated by the above three variables. However, in high contact service contexts (i.e., personal oriented) like health care, conflict management seems to have relatively weak direct and indirect effects on customer loyalty.Research limitations/implications – The single country (Malaysian) origin of the present study’s data suggests the need for corresponding research in a Western context, where customers likely have different service expectations. Additionally, the research scope could be extended to focus on the relational nature of conflict management (the way in which a conflict is framed and resolved) in service recovery and how this moderates the relationship between perceived service quality and customer loyalty. The bi-industry approach taken in this research could also be extended to other low- and high-contact service sectors.Practical implications – Service organizations may benefit from training their employees on conflict management, honing skills in sensing and halting potential customer conflicts, and instituting a rapid and procedurally robust conflict resolution mechanism.Value/originality – This research is the first to examine firm’s conflict management across two service sectors. It contributes to theory by situating conflict management at the crux of the service failure/recovery relationship quality debate and underlining its relevance for a range of desired outcomes namely, customer satisfaction, customer trust, customer value attribution or customer praise, and customer loyalty.

This chapter provides an updated review of research examining the relationship between occupational stressors and job performance. We begin by presenting an eight-category taxonomy of workplace stressors and we then review theories that explain the relationships between workplace stressors and job performance. The subsequent literature review is divided into two sections. In the first section, we present a summary of Jex's (1998) review of research on the job stress–job performance relationship. In the second section, we provide an updated review of the literature, which includes studies that have been published since 1998. In this review, we evaluate how well the contemporary research has dealt with weaknesses and limitations previously identified in the literature, we identify and evaluate current trends, and we offer recommendations and directions for future research.

This chapter combines quantitative studies of the connections between stressors and performance in accounting settings and identifies the mediators and moderators of stressors–performance relationships. Using meta-analyses and path analyses, this research compiles 72 studies to investigate the relationships of stressors with accountant and auditor performance. As hypothesized, bivariate meta-analyses results indicate that work-related stressors negatively affect performance, and burnout and stress are negatively related to performance, whereas motivation is positively related to performance. Moreover, a meta-analytical structural equation modeling indicates that role stressors have significant direct and indirect effects (through burnout and stress) on job performance. Accumulation of multiple samples through meta-analysis bolsters statistical power compared to single-sample studies and thus reveals the sign of residual direct effects of role stressors on job performance in accounting settings.

In this chapter, we attempt to better understand the mechanisms underlying the effects of process conflict on team performance by exploring the role of negative affect in explaining the negative effects of process conflict on performance. Our findings show that negative affect does fully mediate the relationship between process conflict and group performance. Additionally, we investigate a set of conditions relating to fairness concerns and group context, which may have an influence on the relationship between process conflict and negative affect. We find that when voice is high and perceived goal obstruction and subgroup existence are low, the relationship between process conflict and negative affect is ameliorated, thus allowing for more positive effects of process conflict to emerge.

In this chapter we discuss attitudinal and affective factors in the context of science teams. We review some of the key findings on conflict, trust, and cohesion in teams and discuss the differentiation between team-related and task-related definitions of each. In so doing, we discuss their relevance to team effectiveness in science teams and provide guidance on notional areas of research for understanding how these are related to effectiveness in science teams.