A tale of two factions

D.B. Veltrop, Niels Hermes (), T.J.B.M. Postma and Jakob de Haan

No 12001-HRM&OB, Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management)

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.

Date: 2012
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