Conflict Resolution in Vertically Integrated Firms

By Byramjee, Framarz | American International College Journal of Business, Annual 2008 | Go to article overview
Save to active project

Conflict Resolution in Vertically Integrated Firms


Byramjee, Framarz, American International College Journal of Business


ABSTRACT

Conflict resolution and vertical integration have separately been dealt with by numerous researchers in business, economics, and marketing. However, thus far, scant attention has been paid to the manner in which conflicts may be dealt with and resolved, if and when they arise, in a firm that has vertical integration. This paper attempts to address the issue of conflict resolution in vertically integrated firms. It focuses on the advantages of vertical integration which drive the firm to resolve conflicts amicably using problem-solving as the most appropriate resolution strategy.

INTRODUCTION

Conflict and conflict resolution has consistently occupied a central role in models of the interorganizational exchange process (Cadotte & Stern, 1979; Frazier, 1983; Robicheaux & El-Ansary, 1975) and is viewed as the primary mechanism for reducing manifest conflict in distribution channels (Assael, 1968; Stern, 1971; Stern & El-Ansary, 1988).

Vertical integration has been an important research topic in organization studies. Practitioners and academicians have widely dealt with this subject. Whether or not to vertically integrate poses a strategic decision for a firm, and hence its pros and cons are weighed rigorously, as it can have pronounced as well as long-term orientation and implications to the enterprise.

Numerous studies have been conducted in the above two areas by eminent scholars in business, economics, and marketing. However, thus far, scant attention has been paid to the manner in which conflicts may be dealt with and resolved, if and when they arise, in a firm that has vertical integration. This paper examines conflict resolution in marketing channels, in particular, within vertically integrated firms. The topic of conflict resolution is important but has not received sufficient attention over the years. Therefore, this paper promises to make an important contribution to the literature on marketing channel management. It focuses on the advantages of vertical integration which drive the firm to resolve conflicts amicably using the appropriate resolution strategy.

LITERATURE REVIEW

Conflict Resolution

Conflict resolution has consistently occupied a central role in models of the interorganizational exchange process (Cadotte & Stern, 1979; Frazier, 1983; Robicheaux & El-Ansary, 1975) and is viewed as the primary mechanism for reducing manifest conflict in distribution channels (Assael, 1968; Stern, 1971a; Stern & El-Ansary, 1988).

Conflict is defined as the process that begins when one party perceives that the other has negatively affected, or is about to negatively affect, something that he or she cares about (Thomas, 1990). There are at least three elemental forms of conflict, based on the types of concerns that are at stake for the parties. Goal conflicts or interest conflicts involve divergent or apparently incompatible ends desired by the parties. Judgment conflicts involve differences over individuals' cognitions regarding empirical or factual issues. Normative conflicts center on a party's evaluation of another party's behavior in terms of expectations of how the other should behave. Collaborative or win-win strategies are more likely to be chosen when each of the parties involved in the conflict episode places a higher valence on equally satisfying concerns of both the self and the other's interest of the group gains over interest of the self. Positive emotions are generated in such win-win situations, as they appear to increase generosity and helpfulness, pushing each party m more cooperative directions (Carnevale & Isen, 1986). Such joint-welfare approaches are of bipartisan types which focus on satisfying the combined concerns of both conflicting parties. They emphasize the desirability of win-win (Filley, 1975), synergistic (Craig & Craig, 1974), or integrative (Thomas, 1974) outcomes for the two parties.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Conflict Resolution in Vertically Integrated Firms
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?