The Role of Contextual Factors in Conflict Handling Strategies in Logistics Service Networks

Abstract

PurposeIn business-to-business interactions, conflicts are inevitable, and conflict-handling strategies that consider different variables improve the decision-making process of actors. This study aims to reveal the role of power and criticality in conflict-handling research in logistics service networks.Design/methodology/approachA 2 x 2 between-subject experimental design with four different scenarios was used. One hundred sixty logistics service actors completed an online questionnaire. Data were analyzed with ANOVA and paired sample t-tests using the SPSS 28.0 program.FindingsIn comparative scenarios involving high and low power dynamics, individuals with high power and high criticality situations are more inclined to favor the dominating strategy compared to low-power and low-criticality contexts. However, when faced with specific circumstances characterized by both high power and high criticality, actors tend to prioritize the integrating strategy initially, followed by the dominating and obliging strategies in that order. Notably, the statistical analysis revealed no significant interaction effect between criticality and power concerning the integrating, obliging and dominating conflict-handling strategies.Originality/valueThis study used an experimental approach to investigate criticality and power as contextual elements in determining conflict-handling strategies in an inter-firm environment within logistics service networks. This study is particularly groundbreaking in its knowledge of the relationship among power dynamics, conflict criticality and conflict-handling strategies.