IDEAS home Printed from https://ideas.repec.org/a/vrs/founma/v15y2023i1p209-224n13.html
   My bibliography  Save this article

Conflict Costs in National and International Business: A Comparative Analysis

Author

Listed:
  • Dirrler Phyllis

    (Hungarian University of Agriculture and Life Sciences, Faculty of Economic Sciences, Kaposvár Campus, Kerbala, HUNGARY)

  • Podruzsik Szilard

    (Centre for Economic and Regional Studies, Budapest, HUNGARY)

Abstract

Studies presented the importance of conflict costs. Cultural diversity adds more complexity to working groups, fostering conflict. The aim of this research is to investigate how cultural diversity affects conflict costs, measured in terms of lost time & cost amplifiers. Data was collected through an online survey with 490 respondents for national conflicts and 185 respondents for culturally diverse conflict situations. The differences between the two groups are explored by examining their impact on conflict cost amplifiers and the costs themselves. We found that intercultural diversity increases the number of conflicts per year. However, cultural heterogeneity did not affect conflict intensity, duration or the time spent on cost variables. This research is the first one to investigate the effects of cultural diversity on different facets of conflict costs. The results demonstrate the potential, as well as the need for further research.

Suggested Citation

  • Dirrler Phyllis & Podruzsik Szilard, 2023. "Conflict Costs in National and International Business: A Comparative Analysis," Foundations of Management, Sciendo, vol. 15(1), pages 209-224, January.
    • Handle: RePEc:vrs:founma:v:15:y:2023:i:1:p:209-224:n:13
    DOI: 10.2478/fman-2023-0015
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/fman-2023-0015
    Download Restriction: no
    File URL: https://libkey.io/10.2478/fman-2023-0015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Henry Inegbedion & Eze Sunday & Abiola Asaleye & Adedoyin Lawal & Ayeni Adebanji, 2020. "Managing Diversity for Organizational Efficiency," SAGE Open, , vol. 10(1), pages 21582440199, January.
    2. Hofstede, G., 2006. "What did GLOBE really measure? Researchers' minds versus respondents' minds," Other publications TiSEM 53fc2049-e658-4cff-a440-4, Tilburg University, School of Economics and Management.
    3. Ricarda Bouncken & Alexander Brem & Sascha Kraus, 2016. "Multi-Cultural Teams As Sources For Creativity And Innovation: The Role Of Cultural Diversity On Team Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-34, January.
    4. J. Félix Lozano & Teresa Escrich, 2017. "Cultural Diversity in Business: A Critical Reflection on the Ideology of Tolerance," Journal of Business Ethics, Springer, vol. 142(4), pages 679-696, June.
    5. Sornsawan Obsuwan & Deepak Chandrashekar & Sascha Kraus & Alexander Brem & Ricarda Bouncken, 2021. "Does Cultural Diversity Matter For Team Performance In Multinational Companies? An Analysis Of Conflict, Communication, Social Integration, Creativity And Satisfaction," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 25(07), pages 1-40, September.
    6. Geert Hofstede, 2006. "What did GLOBE really measure? Researchers’ minds versus respondents’ minds," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(6), pages 882-896, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dodi Wirawan Irawanto & Phillip L. Ramsey & James C. Ryan, 2011. "Tailoring Leadership Theory to Indonesian Culture," Global Business Review, International Management Institute, vol. 12(3), pages 355-366, October.
    2. Saad Yaseen, 2017. "Understanding Arab Manager s Mindsets," Proceedings of Business and Management Conferences 5607629, International Institute of Social and Economic Sciences.
    3. Lazarova, Mila & Peretz, Hilla & Fried, Yitzhak, 2017. "Locals know best? Subsidiary HR autonomy and subsidiary performance," Journal of World Business, Elsevier, vol. 52(1), pages 83-96.
    4. Belderbos, René & Du, Helen S. & Slangen, Arjen, 2020. "When do firms choose global cities as foreign investment locations within countries? The roles of contextual distance, knowledge intensity, and target-country experience," Journal of World Business, Elsevier, vol. 55(1).
    5. Erkko Autio & Saurav Pathak & Karl Wennberg, 2013. "Consequences of cultural practices for entrepreneurial behaviors," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(4), pages 334-362, May.
    6. Liu, Yuli & Ge, Yuejing & Hu, Zhiding & Wang, Shufang, 2018. "Culture and capital flows—Exploring the spatial differentiation of China's OFDI," China Economic Review, Elsevier, vol. 48(C), pages 27-45.
    7. Bernhard Fietz & Julia Hillmann & Edeltraud Guenther, 2021. "Cultural Effects on Organizational Resilience: Evidence from the NAFTA Region," Schmalenbach Journal of Business Research, Springer, vol. 73(1), pages 5-46, March.
    8. Petia Genkova & Anna Gajda, 2017. "Culture or Culture of Participation: A Success Factor by International Mergers and Acquisitions?," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(4), pages 157-157, March.
    9. Tobias Steindl, 2021. "Cultural rule orientation, legal institutions, and the credibility of corporate social responsibility reports," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 310-332, January.
    10. Vishal Gupta & Golshan Javadian & Nazanin Jalili, 2014. "Role of entrepreneur gender and management style in influencing perceptions and behaviors of new recruits: Evidence from the Islamic Republic of Iran," Journal of International Entrepreneurship, Springer, vol. 12(1), pages 85-109, March.
    11. Fan, Di & Li, Yi & Chen, Liang, 2017. "Configuring innovative societies: The crossvergent role of cultural and institutional varieties," Technovation, Elsevier, vol. 66, pages 43-56.
    12. Sjoerd Beugelsdijk & Tatiana Kostova & Kendall Roth, 2017. "An overview of Hofstede-inspired country-level culture research in international business since 2006," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(1), pages 30-47, January.
    13. Pisani, Niccolò & Kourula, Arno & Kolk, Ans & Meijer, Renske, 2017. "How global is international CSR research? Insights and recommendations from a systematic review," Journal of World Business, Elsevier, vol. 52(5), pages 591-614.
    14. Etayankara Muralidharan & Saurav Pathak, 2018. "Sustainability, Transformational Leadership, and Social Entrepreneurship," Sustainability, MDPI, vol. 10(2), pages 1-22, February.
    15. Terence Ping-Ching Fan & Alex Tai Loong Tan, 2015. "How Product Attributes Influence Internationalization: A Framework of Domain- and Culture-Specificity," Management International Review, Springer, vol. 55(1), pages 53-76, February.
    16. Barreto, Tais S. & Lanivich, Stephen E. & Cox, Kevin C., 2022. "Temporal orientation as a robust predictor of innovation," Journal of Business Research, Elsevier, vol. 138(C), pages 287-300.
    17. Flatten, Tessa & Adams, Daniel & Brettel, Malte, 2015. "Fostering absorptive capacity through leadership: A cross-cultural analysis," Journal of World Business, Elsevier, vol. 50(3), pages 519-534.
    18. DaYeon Her & HyunGyung Joo, 2018. "Individualism-Collectivism as the Dimension Distinguishing the Western from the Eastern Culture," International Journal of Social Science Studies, Redfame publishing, vol. 6(7), pages 31-36, July.
    19. Knein, Ernesto & Greven, Andrea & Bendig, David & Brettel, Malte, 2020. "Culture and cross-functional coopetition: The interplay of organizational and national culture," Journal of International Management, Elsevier, vol. 26(2).
    20. Kader Şahin, 2015. "The legitimacy of codes of corporate governance: perspectives from developed and emerging economies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(3), pages 687-708, August.

    More about this item

    Keywords

    cultural diversity; conflict costs; conflict; international teams; cost measurement;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:founma:v:15:y:2023:i:1:p:209-224:n:13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.