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Conflict Costs in National and International Business: A Comparative Analysis Cover

Conflict Costs in National and International Business: A Comparative Analysis

Open Access
|Dec 2023

Figures & Tables

Figure 1.

The time horizon for studying the event.

(Source: Authors’ own research)

Figure 2.

Research questions.

(Source: Authors’ own research)

Table 1.

Conflict cost clusters including cost variables

-DirectIndirect
Internal

Internal direct:

Legal and dispute costs, discrimination claims, grievance, compensation settlements, litigation, theft and damage, fees to lawyers and professionals, vandalism, sabotage, performance declines, decreased quality, inability to meet deadlines, loss in productivity, increased supervision costs, accidents

Internal indirect:

Wasted time worrying about conflict, dealing with conflict, and resolving conflict, pretending to work, absenteeism, presenteeism*, decreased time at work, decreased work effort, less diligence, avoiding behavior/shun contact, sick leave, psychological and physical disease, voluntary departures from team or organization, attacking behaviors, change resistance, extra time gathering information, counterproductive work behavior, lost time due to not listening**, lost time pointing out mistakes**, bad-quality decision-making, no decision-making

External

External direct:

Legal suits, compensation claims, customer complaint handling, loss of ongoing relationship

External indirect:

Employer reputation, difficulty to attract talent, damage to brand image

1 (Source: Authors’ own research)

1* Variable not considered in our study for lost time measurement

1** Variables added in our study to be measured in terms of lost time

1 Note: Internal indirect conflict costs written in bold print are measured in terms of lost time and included in this study

Figure 3.

Correlations of national conflict situation.

(Source: Authors’ own research)

Figure 4.

Correlations of international conflict situation.

(Source: Authors’ own research)

Table 2.

Descriptive statistics: mean, SD, min. and max.

-NationalInternational
-MSDMin.Max.MSDMin.Max.
Wasted time due to involvement in conflict4.288.760504.599.38050
Wasted time worrying about conflict4.799.350503.736.80050
Pretended to work1.314.530501.425.83050
Counterproductive working behavior0.943.730501.686.75050
Additional time for information gathering2.456.160502.997.27050
Lost time due to avoiding behavior1.905.820502.015.91050
Lost time due to not listening purposely0.743.320501.24.66050
Lost time due to personal attacks1.756.320501.655.37050
Lost time due to pointing out mistakes1.655.490502.346.77050
Less time at work1.645.720501.525.05050
Wasted time solving a conflict5.1710.30504.718.98050
Sick leave to avoid conflict28.7125.0120034.4142.01200
Psychological/physical disease due to conflict64.4214.0120057.6193.01200
Absenteeism63.5213.0120052.416201200

1 (Source: Authors’ own research)

Table 3.

Relation – conflicts per year and international involvement

Conflicts per YearInternational Involvement
Group RanksDescriptionParticipant CountMeanMedian
1No conflicts per year7529.4graphic/j_fman-2023-0015_ingr_001.png20
2Up to 5 conflicts per year36438.1graphic/j_fman-2023-0015_ingr_002.png30
3Up to 10 conflicts per year12945.2graphic/j_fman-2023-0015_ingr_003.png45
4Up to 30 conflicts per year7239.6graphic/j_fman-2023-0015_ingr_004.png35
5Up to 50 conflicts per year3549.4graphic/j_fman-2023-0015_ingr_005.png50
Conflicts per Year:Mean 2.449Median 2

1 (Source: Authors’ own research)

Table 4.

Conflict duration in national and international cooperation

Conflict DurationSamples
Group RankDescriptionNationalInternational
1Up to 1 week22988
2Up to 1 month11552
31-6 months8426
46 to 12 months2611
5Longer than 12 months368
Median22

1 (Source: Authors’ own research)

Table 5.

Conflict strength in national and international cooperation

Conflict StrengthSamples
Group RankDescriptionNationalInternational
1Latent5726
2Weak14653
3Medium22281
4Manifest4518
5Aftermath207
Median33

1 (Source: Authors’ own research)

Figure 4.

Correlations of international conflict situation.

(Source: Authors’ own research)

DOI: https://doi.org/10.2478/fman-2023-0015 | Journal eISSN: 2300-5661 | Journal ISSN: 2080-7279
Language: English
Page range: 209 - 224
Published on: Dec 29, 2023
Published by: Warsaw University of Technology
In partnership with: Paradigm Publishing Services
JEL:

© 2023 Phyllis Dirrler, Szilard Podruzsik, published by Warsaw University of Technology
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.