How Do Chinese Firms Deal with Inter-Organizational Conflict?

Based on social exchange and customer relationship marketing theory, this study examines how ethical leadership contributes to inter-organizational conflict management (task conflict (TC) and relationship conflict), and the moderating role of task interdependence in these relationships. Data was collected from 81 suppliers and 45 corresponding managers of a large group company in China. Results show that ethical leadership is negatively associated with the levels of inter-organizational conflict, whether task or relationship. Task interdependence significantly moderates the relationship between ethical leadership and TC. Managerial implication in terms of creating sound buyer-supplier relationship through an ethical perspective is discussed.