Conflict Management for Justice,Innovation, and Strategic Advantage in Organizational Relationships

This study proposed that conflict management affects organizations’ beliefs that they have an effective voice (procedural justice), have shared their benefits fairly (distributive justice), and are treated respectfully (interactional justice). Structural equation analysis results suggest that a cooperative approach to conflict facilitates justice in its 3 forms in organizational relationships, and that justice, in turn, results in partner strategic advantage and innovation. Results from a sample of 103 pairs of customer and supplier organizations in Shanghai were interpreted as providing support for the value of justice for collaborative work between organizations. The findings also suggest that a cooperative approach to managing conflict is an important antecedent to justice in organizational relationships in China.