Organizational Conflict Resolution and Strategic Choice: Evidence from a Survey of Fortune 1000 Companies

Abstract

In this paper we develop the argument that a firm’s ADR strategies are likely to be associated with a firm’s use of one conflict resolution option or the other. More specifically, we examine whether a firm’s use of either arbitration or mediation is a function of (1) the extent to which the use of either of these dispute resolution processes aligns with the goals and objectives management is seeking to advance, and (2) the extent of the firm’s commitment to the use of these practices. We expect to find that an organization’s use of either mediation or arbitration may be governed by different underlying strategic objectives as well as the firm’s broader commitment to ADR. In what follows, we further develop this strategic choice argument.