Managing buyer-supplier conflict when one party dominates: A process study

Abstract

This study examines how conflicts develop in buyer-supplier relationships. Specifically, we investigate what drives the use of the dominating (win-lose) conflict management approach by parties in buyer-supplier conflicts, and how the sequence and types of conflict management approaches employed throughout the process affect whether it is managed in a functional or dysfunctional manner. Existing studies often focus on one-sided, one-stage conflicts which may not reflect the true process of conflict management. This qualitative study analyses the historical e-mail correspondences between a small retailer and five of its suppliers, allowing for an exploration of authentic conflict management processes. We develop a two-sided, multi-stage process model that outlines the drivers that promote the use of dominating approaches throughout the conflict, and considers the initial and subsequent actions by both parties that lead to a (dys)functional conflict process. It demonstrates that dysfunctional conflicts are those that end with either party employing a dominating approach. This suggests that even if dominating approaches are employed throughout the conflict process, the conflict may not escalate, and is therefore managed in a functional manner.