Conflict Management for Government and Businesses to Share Effective Practices in China

Governments and businesses are increasingly forming partnerships to further common purposes and learn from each other. However, they are apt to have considerable conflict as they have diverse interests and perspectives. Findings from 119 pairs of government officials and business managers support the theorizing that the cooperative approach to conflict, but not the competitive approach, contributes to successful government-business partnerships in China. Specifically, structural equation analyses support the model that the cooperative approach to conflict fosters interorganizational trust and the sharing of effective practices that in turn result in effective partnerships and industry development.