THE FORMS AND CONDITIONS OF SUCCESSFUL CONFLICT MANAGEMENT IN THE METAL AND MACHINERY SUPPLY CHAINS

Abstract

According to a basic theory of sociology conflict belongs to life so it belongs to business life as well. If we face this view logically the next step is how companies avoid the unnecessary conflicts and how they handle inevitable conflicts. Our empirical paper suggests several successful conflict management methods which were identified through qualitative methodology. In depth interviews managers from the metal industry and machinery supply chains explain their experiences and failures regarding conflict management. We found that business actors do their best to avoid legal procedure as conflict resolution. They prefer different informal tactics for managing conflict such as better communication or personal discussion. However formal solutions are becoming increasingly important. For example nowadays a used complex enterprise resource planning (ERP) software heavily determines actions and timing of actions upon deviation from normal or agreed business processes which leaves little room for human words and reflection. We suggest some proven methods for successful conflict management. Based on our results and experiences a larger scale, quantitative survey could give more general results.