IDEAS home Printed from https://ideas.repec.org/p/gro/rugsom/12001-hrmob.html
   My bibliography  Save this paper

A Tale of Two Factions: Exploring the Relationship between Factional Faultlines and Conflict Management in Pension Fund Boards

Author

Listed:
  • Haan
  • Postma
  • Hermes
  • Veltrop

    (Groningen University)

Abstract

We examine the effect of factional demographic faultlines between two naturally occurring factions within Dutch pension fund boards on conflict management within these boards. Data on 313 Dutch pension fund boards confirm that factional demographic faultlines are positively related to competitive conflict management and moderately negatively related to cooperative conflict management. As predicted by faultline theory, these relationships are mediated by perceived subgroup formation. A noteworthy finding with clear managerial implications is that the disruptive effects from factional demographic faultlines are attenuated by board reflexivity. Moderated mediation analyses corroborate these findings.

Suggested Citation

  • Haan & Postma & Hermes & Veltrop, 2012. "A Tale of Two Factions: Exploring the Relationship between Factional Faultlines and Conflict Management in Pension Fund Boards," Research Report 12001-HRMOB, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    • Handle: RePEc:gro:rugsom:12001-hrmob
    as

    Download full text from publisher

    File URL: http://irs.ub.rug.nl/ppn/344367487
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sherry M.B. Thatcher & Karen A. Jehn & Elaine Zanutto, 2003. "Cracks in Diversity Research: The Effects of Diversity Faultlines on Conflict and Performance," Group Decision and Negotiation, Springer, vol. 12(3), pages 217-241, May.
    2. Eric Molleman, 2005. "Diversity in Demographic Characteristics, Abilities and Personality Traits: Do Faultlines Affect Team Functioning?," Group Decision and Negotiation, Springer, vol. 14(3), pages 173-193, May.
    3. Amy J. Hillman & Gavin Nicholson & Christine Shropshire, 2008. "Directors' Multiple Identities, Identification, and Board Monitoring and Resource Provision," Organization Science, INFORMS, vol. 19(3), pages 441-456, June.
    4. Harry G. Barkema & Oleg Shvyrkov, 2007. "Does top management team diversity promote or hamper foreign expansion?," Strategic Management Journal, Wiley Blackwell, vol. 28(7), pages 663-680, July.
    5. Geoffrey C. Kiel & Gavin J. Nicholson, 2005. "Evaluating Boards and Directors," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(5), pages 613-631, September.
    6. van Ginkel, Wendy P. & van Knippenberg, Daan, 2009. "Knowledge about the distribution of information and group decision making: When and why does it work?," Organizational Behavior and Human Decision Processes, Elsevier, vol. 108(2), pages 218-229, March.
    7. Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer, 1999. "Corporate Ownership Around the World," Journal of Finance, American Finance Association, vol. 54(2), pages 471-517, April.
    8. Nederveen Pieterse, Anne & van Knippenberg, Daan & van Ginkel, Wendy P., 2011. "Diversity in goal orientation, team reflexivity, and team performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 114(2), pages 153-164, March.
    9. Karen A. Bantel & Susan E. Jackson, 1989. "Top management and innovations in banking: Does the composition of the top team make a difference?," Strategic Management Journal, Wiley Blackwell, vol. 10(S1), pages 107-124, June.
    10. Donald C. Hambrick & Jiatao Li & Katherine Xin & Anne S. Tsui, 2001. "Compositional gaps and downward spirals in international joint venture management groups," Strategic Management Journal, Wiley Blackwell, vol. 22(11), pages 1033-1053, November.
    11. Alessandro Minichilli & Jonas Gabrielsson & Morten Huse, 2007. "Board Evaluations: making a fit between the purpose and the system," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(4), pages 609-622, July.
    12. Richard Leblanc, 2005. "Assessing Board Leadership," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(5), pages 654-666, September.
    13. Jehn, Karen A. & Bezrukova, Katerina, 2010. "The faultline activation process and the effects of activated faultlines on coalition formation, conflict, and group outcomes," Organizational Behavior and Human Decision Processes, Elsevier, vol. 112(1), pages 24-42, May.
    14. Jerry Goodstein & Kanak Gautam & Warren Boeker, 1994. "The effects of board size and diversity on strategic change," Strategic Management Journal, Wiley Blackwell, vol. 15(3), pages 241-250, March.
    15. Gerben S. Van der Vegt & Simon B. de Jong & J. Stuart Bunderson & Eric Molleman, 2010. "Power Asymmetry and Learning in Teams: The Moderating Role of Performance Feedback," Organization Science, INFORMS, vol. 21(2), pages 347-361, April.
    16. Barbara S. Lawrence, 1997. "Perspective---The Black Box of Organizational Demography," Organization Science, INFORMS, vol. 8(1), pages 1-22, February.
    17. Katerina Bezrukova & Karen A. Jehn & Elaine L. Zanutto & Sherry M. B. Thatcher, 2009. "Do Workgroup Faultlines Help or Hurt? A Moderated Model of Faultlines, Team Identification, and Group Performance," Organization Science, INFORMS, vol. 20(1), pages 35-50, February.
    18. Guoquan Chen & Chunhong Liu & Dean Tjosvold, 2005. "Conflict Management for Effective Top Management Teams and Innovation in China," Journal of Management Studies, Wiley Blackwell, vol. 42(2), pages 277-300, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Caspar Rose, 2017. "The relationship between corporate governance characteristics and credit risk exposure in banks: implications for financial regulation," European Journal of Law and Economics, Springer, vol. 43(1), pages 167-194, February.

    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. Veltrop, D.B. & Hermes, C.L.M. & Postma, T.J.B.M. & de Haan, J., 2012. "A tale of two factions," Research Report 12001-HRM&OB, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    2. repec:dgr:rugsom:12001-hrmob is not listed on IDEAS
    3. Shan Xue & Yi Tang & Yuehua Xu & Chu-Ding Ling & Xiao-Yun Xie & Shenjiang Mo, 2024. "How boards’ factional faultlines affect corporate financial fraud," Asia Pacific Journal of Management, Springer, vol. 41(1), pages 351-376, March.
    4. Shuai Chen & Duanxu Wang & Yun Zhou & Ziguang Chen & Daoyou Wu, 2017. "When too little or too much hurts: Evidence for a curvilinear relationship between team faultlines and performance," Asia Pacific Journal of Management, Springer, vol. 34(4), pages 931-950, December.
    5. Thomas Hutzschenreuter & Julian Horstkotte, 2013. "Performance effects of top management team demographic faultlines in the process of product diversification," Strategic Management Journal, Wiley Blackwell, vol. 34(6), pages 704-726, June.
    6. Danielle Cooper & Pankaj C. Patel & Sherry M. B. Thatcher, 2014. "It Depends: Environmental Context and the Effects of Faultlines on Top Management Team Performance," Organization Science, INFORMS, vol. 25(2), pages 633-652, April.
    7. Hong Ren & Barbara Gray & David A. Harrison, 2015. "Triggering Faultline Effects in Teams: The Importance of Bridging Friendship Ties and Breaching Animosity Ties," Organization Science, INFORMS, vol. 26(2), pages 390-404, April.
    8. Saskia CRUCKE & Nathalie MORAY & Nathalie VALLET, 2015. "Some Internal representation and Factional Faultlines as Antecedents for Board Performance in Social Enterprises," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(2), pages 385-400, June.
    9. Vandebeek, Alana & Voordeckers, Wim & Lambrechts, Frank & Huybrechts, Jolien, 2016. "Board role performance and faultlines in family firms: The moderating role of formal board evaluation," Journal of Family Business Strategy, Elsevier, vol. 7(4), pages 249-259.
    10. Christopher Kurzhals & Lorenz Graf‐Vlachy & Andreas König, 2020. "Strategic leadership and technological innovation: A comprehensive review and research agenda," Corporate Governance: An International Review, Wiley Blackwell, vol. 28(6), pages 437-464, November.
    11. van den Oever, Koen, 2017. "Uncharted waters : A behavioral approach to when, why and which organizational changes are adopted," Other publications TiSEM 0136c8c2-ecdd-4f82-8ca7-d, Tilburg University, School of Economics and Management.
    12. Joyce Rupert & Astrid C. Homan & Karen A. Jehn & Robert Jan Blomme, 2019. "Diversity Composition and Team Learning: The Moderating Role of Error Culture," Group Decision and Negotiation, Springer, vol. 28(4), pages 695-722, August.
    13. Ilya R. P. Cuypers & Charmi Patel & Gokhan Ertug & Jiatao Li & Youtha Cuypers, 2022. "Top management teams in international business research: A review and suggestions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 481-515, April.
    14. van den Oever, Koen & Beerens, Bart, 2021. "Does task-related conflict mediate the board gender diversity–organizational performance relationship?," European Management Journal, Elsevier, vol. 39(4), pages 445-455.
    15. Juan Pablo Diánez-González & Carmen Camelo-Ordaz, 2016. "How management team composition affects academic spin-offs’ entrepreneurial orientation: the mediating role of conflict," The Journal of Technology Transfer, Springer, vol. 41(3), pages 530-557, June.
    16. Zhang, Yameng & Sharma, Piyush & Xu, Yekun & Zhan, Wu, 2021. "Challenges in internationalization of R&D teams: Impact of foreign technocrats in top management teams on firm innovations," Journal of Business Research, Elsevier, vol. 128(C), pages 728-741.
    17. Myung-Ho Chung & Yumi Ko & Jee-Young Kim, 2020. "Group power structure, inter-subgroup cross-dependency, and work group performance," Asia Pacific Journal of Management, Springer, vol. 37(1), pages 297-323, March.
    18. Valls, Víctor & Tomás, Inés & González-Romá, Vicente & Rico, Ramón, 2021. "The influence of age-based faultlines on team performance: Examining mediational paths," European Management Journal, Elsevier, vol. 39(4), pages 456-466.
    19. F. Pinar Acar, 2016. "The effects of top management team composition on SME export performance: an upper echelons perspective," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 24(4), pages 833-852, December.
    20. Carmen Camelo & Mariluz Fernández‐Alles & Ana B. Hernández, 2010. "Strategic consensus, top management teams, and innovation performance," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(6), pages 678-695, September.
    21. van Knippenberg, Daan & Mell, Julija N., 2016. "Past, present, and potential future of team diversity research: From compositional diversity to emergent diversity," Organizational Behavior and Human Decision Processes, Elsevier, vol. 136(C), pages 135-145.

    More about this item

    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:gro:rugsom:12001-hrmob. 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: Hanneke Tamling (email available below). General contact details of provider: https://edirc.repec.org/data/ferugnl.html .

    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.