SOURCES AND EFFECTS OF CONFLICTS IN BUSINESS RELATIONSHIPS OF MULTINATIONAL ENTERPRISES

Authors: Aleksandra Hauke-Lopes; Krzysztof Fonfara; Milena Ratajczak-Mrozek

The aim of the study: Conflicts, as an inherent part of many business relationships, may appear with different intensity. Additionally, their impact and effects on an enterprise’s activities can range from positive to negative, including the termination of the business relationship. In the paper conflicts are analyzed from the perspective of the multinational enterprise (MNE). A MNE, which operates in many international markets, forms a globally dispersed internal network consisting of a parent company (headquarters) and its subsidiaries. The multitude of relationships that MNEs establish with diverse actors highly increases the probability of internal and external conflict situations. The aim of the paper is to analyze sources of conflicts experienced by MNEs in their internal and external relationships and the effects of these conflicts on their activities in foreign markets. Methodology: We present results of in-depth interviews conducted in 7 different units (headquarters and subsidiaries) of Polish-based MNEs. After internal and comparative analysis, the obtained results are compared with the existing research. The main findings: The analysis shows that in the 7 analyzed MNE units most conflicts were observed in external relationships. The MNE units adopted different approaches to handling conflicts – from attempts to find a convenient and acceptable resolution to terminating the relationship and finding another partner. The effects of conflicts were mostly assessed positively by representatives of the MNE units.

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Publish Year: 2018

Conference: Marseille, France (2018)