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IMPACT OF DIFFERENT CONFLICT LEVELS ON CULTURALLY DIVERSIFIED


JAPANESE ORGANISATIONS' PERFORMANCE UNDER A COLLABORATIVE
CONFLICT MANAGEMENT STYLE

Article · December 2021

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Int’l J. of Org. Bus. Excellence Vol. 4(2): 71 – 94 (2021)

Organizational Business Excellence


http://research,binus.ac.id/pex/ijobex/
INTERNATIONAL

IMPACT OF DIFFERENT CONFLICT LEVELS ON CULTURALLY DIVERSIFIED JAPANESE


ORGANISATIONS’ PERFORMANCE UNDER A COLLABORATIVE CONFLICT MANAGEMENT
STYLE

Giang Nguyen1 and Vikas Kumar2


1,2
University of the West of England, Bristol, United Kingdom

Abstract

With the increasing globalization, cultural diversity management has emerged as an important issue and it
is regarded as a process that helps to maintain a positive workplace environment where the similarities and
differences of individuals from different cultural backgrounds are valued and shared. The current research
examines the impacts of levels of conflict on Japanese organisations’ performance as well as how the
collaboration conflict management style influences this relationship. Drawing on conflict management
literature and the five levels of conflict from Speed Leas’ Conflict model, the research develops a research
model to examine the moderating effect of collaborative conflict management style (CCMS) on the
relationship between different levels of conflicts and organisational performance. Data gathered from 58
Japanese and non-Japanese employees in Japanese companies. Data is analysed through SPSS and two-way
ANOVA. The results indicate that conflict intensification triggers a negative impact on organisational
performance. It also reveals that at different levels of conflicts, collaboration style has various impacts on
the performance.

Keywords: collaboration, conflict management, organisational performance, Japan

INTRODUCTION
In a constantly changing global environment, to government projections, the labour force in
workforce diversity has become the hot-button Japan tends to decline in the next two decades
topics for multinational corporations as they which implies a negative economy in the short
are affecting all facets of the economy and term and long term. Namely, it curbs many
grant multiple challenging opportunities and Japanese companies’ operation, pushes up
creating threats that can affect the wages, slows down the national economic
performance of companies (DeLancey, 2013). growth, and reduce the effectiveness of
Japan- the third-largest economy in the world monetary policies and fiscal stimulus (Ganelli &
by nominal GDP is facing a crisis of domestic Miake, 2015; Ohsumi, 2014). In the face of
labour shortage from an international those issues, immigration of short term
perspective (“Japan country”, 2018). According workers mainly from developing Asian nations
has been proposed as an effective solution to
Japan’s ageing demographic with a low
ARTICLE INFO
birthrate and shrinking labour force (“Japan
Article history:
Received: 24 August 2021 and the immigration”, 2004). Moreover, a
Accepted: 29 October 2021 fiercely competitive business environment has
_____________
Email Addresses:
compelled Japanese managers to look back at
giang8.nguyen@uwe.ac.uk (Giang Nguyen) the bottom line and go for peripheral workers
Vikas.Kumar@uwe.ac.uk (Vikas Kumar) to reduce various costs (McDonald, 2003).
However, shifting business system and social
*Corresponding author
and demographic changes have become a

E-ISSN 2621-654X © i-PEF 71


Nguyen, Giang and Kumar, Vikas
burdensome math problem for many Japanese 1992). As there are no guiding studies to date
managers in managing the diversified culture- on the effectiveness of CCMS adopted by
related issues (McDonald, 2003, p.99). Hence, supervisors/managers on different levels of
effective interaction among diverse workers conflicts to improve organizational
has become extremely critical to smooth performance within the culturally
organizational functioning. heterogeneous workplace, especially Japanese
Some researchers consider multi-culture organizations. To fill in the existing gaps, this
related conflicts can be seen as an opportunity research investigates the effectiveness of
for organizational growth if managed CCMS adopted by supervisors or managers on
constructively and efficiently. Hence, it is the organizational performance of Japanese
crucial for managers/ team leaders to be able companies from employees’ perspectives.
to figure out the sources of conflicts, to have Drawing on the literature and the findings, the
an understanding of their constructive and research will find out the level or levels of
destructive potential, apply approaches to conflicts where CCMS will work best for
manage conflicts and appropriately implement managers or supervisors to increase employee
conflict resolution methods to promote the engagement with colleagues to produce the
group performance. According to Paul et al. highest quality organizational performance.
(2004), five patterns of conflict management The findings will provide new insight into the
styles based on the notion “Concern for Self” relationship of conflict levels, the effectiveness
and “Concern for Others”: Avoidance (low of the collaborative management style and
concern for others and low concern for self); Japanese organization performance.
Accommodation (high concern for others and The research aims to address the research
low concern for self); Competition (low concern questions:
for others and high concern for self);  Are cultural conflicts likely to impede all
Collaboration (high concern for others and high aspects of organizational performance?
concern for self); Compromise (moderate  Which levels of conflicts have negative
concern for all). Among those conflict implications on the organizational
resolution styles, Brown (1992), Gross and outcomes and which one has the
Guerrero (2000) and Thomas (1976) found that positive or no impact on those
Collaborative Conflict Management Style outcomes?
(CCMS) was perceived as the most effective  Is there any correlation between levels
and situationally appropriate strategy while of conflicts and organisational
other alternatives were either less useful or performance?
outright obnoxious since they deal with what is At which levels of conflicts, the
currently existing. However, the effectiveness collaboration conflict management style has
of CCMS in a diversified environment is still a and does not have significantly positive
question to a lot of researchers. There are a impacts on improving the Organisational
plethora of research investigations about the Performance?
effects of national cultures on conflict
resolution styles or the role of national cultures LITERATURE REVIEW
on the impact of collaborative conflict Research on organizational conflict
resolution on group performance. Nevertheless, management has taken two directions. The
the focus of these researches is on the choice first direction is measuring the amount of
rather than the effectiveness of conflict intensity of conflict at various organizational
resolution methods (Leung, 1988). Besides, levels and explore the sources of those
most of the early research on conflict conflicts (Rahim, 2010). This approach
management theories originated from the suggested that a moderate level of conflict can
organizational managers’ point of views rather be maintained for boosting organizational
than from employees’ perspective (Brown, effectiveness by altering the sources of
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Int’l J. of Org. Bus. Excellence Vol. 4(2): 71 – 94 (2021)
Impact of Different Conflict Levels

conflicts. The other approach is relating various 2003; Paul et al., 2004; Peng, 2016) that are
styles of handling interpersonal conflicts power distance, uncertainty avoidance,
among employees and the effects of those individualism-collectivism, masculinity-
styles on problem-solving quality and goal femininity and long term orientation. Power
achievements (Rahim, 2010). In this research, distance refers to the extent of inequality
the source of conflicts will be studied within among people within a country that is
the frame of cultural diversity in the Japanese considered normal. Uncertainty avoidance, on
workplace and under the influence of the the other hand, refers to the extent to which
collaborative conflict-handling style. Moreover, people in different cultures accept ambiguous
the study will focus on handling conflicts to circumstances and tolerate uncertainty (Anbari
improve organizational performance rather et al., 2003; Peng, 2016). Individualism-
than altering the sources of conflicts. collectivism is the degree of interdependence a
society maintains among its members (Geert-
Cultural Diversity and Japanese Culture hofstedecom, 2017). Individualism relates to
Culture is “the sum of the beliefs, rules, the degree that an individual’s identity is
techniques, institutions, and artefacts that fundamentally his or her own whereas
characterize human populations” (Ball et al., collectivism is the idea of individuality’s
2001). Hence, cultural diversity is defined as identity which is based on his or her collective
the differences in worldviews or subjective group. Masculinity versus femininity dimension
cultures which produce a potential of refers to the sex-role differentiation in a
behavioural differences among cultural groups society where masculinity emphasizes the
(Ting-Toomey, 1993; Triandis, 1972). The rise extent to which tough values prevail over
in the number of multinational corporations tender values (Paul et al., 2004). Long term
has brought people to face-to-face interactions orientation dimension places emphasis on how
which then creates organisational complexity much perseverance and savings for future
and conflicts tied to cultural diversity (Naylor, betterment rather than the present. While
1997). Hence, understanding cultural cluster approach and context approach are
differences is a must to comprehend different useful, the dimension approach is by far the
ways of dealing with emerging conflicts within most influential. According to Samarah, Paul,
organizations. There are three approaches to and Mykytyn (2002), it performs as the
understand cultural differences: (1) cluster, (2) theoretical basis for understanding the
context and (3) dimension approaches influence of cultural diversity on the
(Martineau & Feller, 2000; Peng, 2016). The behaviours of culturally heterogeneous groups.
cultural cluster approach classifies cultures Hence, it will be serving as a basis for this
based on geographical locations (Martineau & research conducting on cultural conflicts in
Feller, 2000). Meanwhile, according to Hall Japanese companies. According to Geert-
Edward (1976), the context approach Hofstedecom (2017), Japan has average power
concentrates on the high versus low context distance and individualism level, high
culture. The dimension refers to social masculinity, uncertainty and long term
interaction among people in a society, orientation which are shown in Figure 1. In
especially in social bonds, commitments, Japanese society, these moral values and
responsibilities, communication and harmony. judgements play a key role in defining a
On the other hand, in the dimension culture’s good or bad opinions. When these
approaches, Hofstede identified five bipolar values do not align with other different
dimensions of national culture (Anbari et al., cultures, conflicts are likely to emerge.

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Int’l J. of Org. Bus. Excellence Vol. 4(2): 71 – 94 (2021)
Nguyen, Giang and Kumar, Vikas

Figure 1. Japanese culture basing on Hofstede’s five cultural dimensions


(Geert-hofstede.com, 2017; Hofstede, 1994)

Conflicts and Multicultural Conflicts It is believed that task and process conflicts
According to Tedeschi, Schlenker & Bonoma can cause more negative consequences to
(1973), conflict is defined as an interactive organizational performance when task, process
state where the behaviours or goals of one and relationship conflicts are strongly
party are to some extent incompatible with correlated (De Dreu and Weingart, 2003 and
behaviours or goals of some other parties. Huang, 2010). The relation of these types of
According to Behfar et al. (2002), Greer and conflicts can be intensified by the cultural
Jehn (2007) and Jehn et al. (2008), three types diversity of the workplace or being called
of organizational conflicts are tasks, “multicultural conflict”.
relationship or interpersonal and process The multicultural conflict was stated by
conflicts. Relationship conflicts are the Ting-Toomey (2012) as “the perceived or actual
disagreement and incompatibilities among incompatibility of values, norms, process, or
group members about personal issues that are goals between a minimum of two
not task-related such as personality differences, (interdependent) cultural parties over content,
social events, hobbies, political views or gossip identity, relational, and procedural issues”.
(Jehn et al., 2008; Jehn, 1997a). Task conflicts, Multicultural conflict at the workplace can
on the other hand, refer to “opposing views” disrupt organizational interaction, members’
or disagreements among individuals towards willingness and ability to collaborate as well as
the content of tasks, including different points create organizational conflicts which are likely
of views, ideas and thoughts of the tasks being to have a bearing on the group’s overall
performed (Jehn et al., 2008). Meanwhile, performance. Hence, understanding cross-
process conflicts refer to “the disagreements cultural differences in face concerns, levels of
about the logistical and delegation issues such conflicts and conflict behavioural patterns to
as how the tasks should be accomplished in a approach appropriate conflict management
process such as who the responsible person is skill is the first step in preserving interpersonal
and how tasks should be delegated (Jehn et al., relationships and inclusive multicultural
2008).
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Int’l J. of Org. Bus. Excellence Vol. 4(2): 71 – 94 (2021)
Impact of Different Conflict Levels

community (Gudykunst and Mody, 2002; Kim appropriate management strategies to fit the
and Leung, 2000). level. Speed Leas has identified a five-level
model of conflict to assess the intensity of a
Conflict Levels and Conflict Perspectives conflict in a particular situation (Leas, 2012)
Managing conflicts successfully requires an which is illustrated in Figure 2.
accurate assessment of conflict level as well as

Figure 2. Speed Leas’ Conflict Model (Leas, 2012)

Level I - Problem to solve: Differences are Level IV - Fight/Flight: The conflict participants
identified, then shared and discussed among tend to shift from winning to hurt or get rid of
members. This level is a problem or task- their opponents (Nelson, 2008). Therefore,
oriented conflict rather than a person or conflicts at this level require the third parties’
relationship-oriented one (Nelson, 2008). intervention to serve as “go-betweens” who
can carry the messages (Shearouse, 2011;
Level II - Agreement: This is the mixture of Smith, 1992).
personalities and issues; therefore, problems
cannot be identified (Leas, 2012; Smith, 1992). Level V - Intractable situation/War: People in
It is the beginning of members’ distrust and this level no longer have a clear understanding
personalizing problems. of issues (van Deusen Hunsinger & Latini, 2013).
Energy is centred on attempts to eliminate or
Level III - Contest: Win/lose dynamics which destroy others’ reputation, position and
are a fairly high level of conflict have emerged wellbeing which eventually ruin their
as a result of factions, sides, camps, distorted relationship. From level 1 to level 5, the
communication or personal attacks (van conflict intensifies from the task orientation
Deusen Hunsinger & Latini, 2013). Conflict where divergence in goals, needs and values
objectives at this level have shifted from self- are shared to reach the agreement, to the
protection to winning. Some people are unable person or relationship orientation where there
to operate in presence of an “enemy”. is no understanding of the issues, parties’
However, at this level, many people feel personality is central of unmanageable
stimulated and exhilarated by the worthy conflicts and the aim of parties is to ruin the
opponents (Leas, 2012). other party’s reputation.

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Int’l J. of Org. Bus. Excellence Vol. 4(2): 71 – 94 (2021)
Nguyen, Giang and Kumar, Vikas

Figure 3. Past and present perspectives of conflict

Conflict-is-bad perspective (pre-1970s) correlated and hence redundant.


As seen in Figure 3, the pre-1970s Nonetheless, this positive effect breaks
perspective “conflict-is-bad” has prevailed down quickly when the level of conflict
for most of the time, it claimed that intensifies (De Dreu and Weingart, 2003).
organizational conflict intensification can Therefore, the perspective implies that
hamper a company from achieving the either too little or excessive level of conflicts
common vision as it is viewed from different has a destructive outcome (Brown, 1983;
perspectives and interests (Dougherty, 1992) Gray & Starke, 1988).
as well as easily turn task issues into
emotional issues (Pelled, 1996). From this Modern perspective: Constructive and
view, it assumes that conflict is always destructive conflict
detrimental to efficiency and hence should The modern view also agrees with the
be prevented and minimized at all costs optimal conflict perspective that without
(Rahim, 2010). conflict, group or organization is more likely
to become inflexible, unadaptable and static.
Temporary/ human relations or optimal Hence, a minimum level conflict is relatively
conflict perspective (1970s-1990s) beneficial for organizations as it produces
By the 1970s, the perspective “conflict-is- creativity and competition among
bad” was replaced by the optimal conflict individuals. Although it does not claim that
perspective which suggests that conflict is every type of conflict is beneficial or healthy,
natural and inevitable in all organizations it clearly states that only functional and
and it might have either a healthy or constructive forms of conflict can benefit
detrimental effect. Indeed, Schulz-Hardt, the organizations while the destructive and
Jochims & Frey (2002) and Hollenbeck et al. dysfunctional ones can destroy its
(1998) found that the decision-making is performance. All these conflict perspectives
more effective when pre-discussion are shown in Figure 3.
preferences are in disagreement rather than
agreement, as they believed that those A growing tendency in the literature
uncorrelated or negatively correlated ideas suggests that only moderate levels of ‘task
tend to provide more values as a unit than conflicts’ are constructive in stimulating
those whose recommendations are organizational performance while a high level

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Int’l J. of Org. Bus. Excellence Vol. 4(2): 71 – 94 (2021)
Impact of Different Conflict Levels

of ‘task conflicts’ can be transformed into (cooperativeness). Graphing these two


‘relationship conflicts’ which are regarded as dimensions, they elicited five corresponding
the destructive factor to organizational conflict management strategies: Compromising,
performance (Jehn, 1997b). In other words, the Avoiding (Withdrawal), Smoothing
“negative outcome of task conflict is the (Accommodating), Confronting (Problem-
relationship conflict” (Jimmieson, Tucker & solving, integrating or collaborating) and
Campbell, 2017). Therefore, if not effectively Forcing. Similarly, based on Blake & Mouton’s
handled to maintain the conflict to the handling conflict style taxonomy, Thomas &
moderate levels, it can escalate and lead to Kilmann (1974) also built a grid model of five
nonproductive results such as tearing the factors that are competition, avoidance,
relationships apart and interfering with the accommodation, compromising and
exchange of ideas, information and resources collaboration.
(Abiodun, 2014; Thakore, 2013). Therefore:
Avoidance (low assertiveness and low
H1: Without conflict control or management cooperation): refers to the intentional
methods, levels of conflict have a negative withdraw from a conflict situation (Paul et al.,
correlation with organizational performance. 2004). Instead of confronting conflicts, this
style ignores conflicts (Xie, Song & Stringfellow,
In general, organizations need to make an 1998)
accurate assessment of their conflict levels so
that an appropriate type of intervention can be Accommodation (low assertiveness but high
determined. This is because an appropriate cooperation): In this approach, one party yields
approach at one level can be ineffective or to the expectations of the other. Instead of
counterproductive if being used at another combining two diverse ideas, the decision is
level (Nelson, 2008). Depending on the levels made by one side.
of conflict, different types of conflicts are
preferred to enhance organizational Competition (high assertiveness and low
performance. cooperation): refers to the tendency of one
party’s power usage on the other (Boonsathorn,
Conflict Management Styles 2007).
According to Rahim (2010), a moderate level
of conflicts can provide necessary activation Collaboration (high assertiveness and high
and stimulation to optimize the job cooperation) refers to the integration of all
performance of the organizational members or involved people’s views. Participants
enhance their adaptive and innovative collaborate toward a “win-win” solution by
capabilities. Hence, Brown (1983) suggested bringing all relevant issues to the light, sharing
that in conflict management, intervention or information and analyzing the situation (Rahim,
conflict management is required to reduce the 2002).
level of conflicts if it is too much or to promote
the conflict level if it is too little. There has Compromise (intermediate assertiveness and
been a plethora of psychologist and cooperation): Both parties’ wishes and
communication researchers making efforts to interests are taken into consideration to find a
discover conflict management approaches. middle ground solution that is viewed as fair
One of the first researchers devoting and mutually acceptable to both (Rahim, 2002).
considerable theory of organizational conflict
In general, conflict management strategies
management styles was Blake & Mouton
play a key role in effectively managing the
research (1964) who centred on two indices:
conflicts that usually arise from divergent
concern for self-interest (assertiveness) and
needs among parties with an organization
concern for other conflict parties
(Barbuto, Phipps & Xu, 2010). Among conflict
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Int’l J. of Org. Bus. Excellence Vol. 4(2): 71 – 94 (2021)
Nguyen, Giang and Kumar, Vikas
resolution styles, collaboration is regarded by resolve the conflict rather than negotiate
many researchers as the answer to collaboratively as well as lack of cooperation
organizations’ culturally diverse conflicts. among employees. Therefore, it is believed
that:
Collaborative Conflict Management
According to Brown and Berkun (2013), H2: Under the influence of collaboration, high
collaboration can improve team performance levels of conflicts (level 4 and 5) will not have
by enabling them to work effectively and significant positive impacts on organizational
efficiently. In addition, it is considered the performance
most effective conflict resolution style
(MacIntosh & Stevens, 2008; Gross & Guerrero, At medium levels of conflict, the firm
2000) because it can lessen both conflicts and employees who are eager and enthusiastic for
stress (Friedman et al., 2000). Especially, collaborating with others are expected to
according to Xie, Song and Stringfellow (1998), expend effort and time to identify sources of
the collaboration conflict resolution method information, solve problems and achieve the
will be more effective in a culture of low mutually satisfactory decisions which come
individualism, high power distance, high from the integration of all people’s views.
uncertainty avoidance and long term Particularly, at level 2 of the conflict, although
orientation than a culture that has a high score members hesitate to confront criticism and
on the first dimension and low on other honest dialogues and focus on self-protection
dimensions. Japan is the country of low to and not getting hurt (a signal of distrust and
average individualism (46/100) but high on personalizing problem), they are still willing to
power distance (54/100), uncertainty cooperate to solve the problems. Therefore,
avoidance (92/100) and long-term orientation managers or team leaders play a key role in
(80/100) (Hofstede, 1994). Hence, the connecting members to achieve mutual goals
collaboration conflict management style and having a strong influence on their
becomes the centre of this study in Japanese performance (Hinds & Bailey 2003).
culture. Furthermore, at level 3 of conflicts, despite
Resolving the high-conflict issues involving distorted communication and shifting from
steps such as sharing the differences, eliciting self-protection to winning, members do not
the rationales of parties, understanding their focus on hurting or getting rid of their
viewpoints and reaching a consensus requires opponents (van Deusen Hunsinger & Latini,
an intensive investment of time, emotion and 2013). Some members prefer to operate in the
energy (Jones & Brinkert, 2007; Putnam & presence of their “enemies” and feel
Poole, 1987). However, at intense levels (level stimulated by their worthy opponents (Leas,
4 and 5), employees’ propensity is to compete 2012) which imply that members prefer a
and strive to get rid of their opponents as well healthy competition where new ideas,
as eliminate or destroy their colleagues’ conflicting ideologies, information sources and
reputation, position and wellbeing. Hence, evaluation of alternatives are promoted. Hence
those levels of conflicts will hinder the efforts at moderate levels of conflict, the collaborative
to interact collaboratively or the effectiveness management style will exert a positive impact
of collaborative management which requires on organizational performance.
perseverance and open communication among
employees. In addition, collaborating requires H3: Under the influence of collaboration,
and advances a high level of trust and respect moderate levels of conflicts (level 2 and 3) will
between parties (Jones & Brinkert, 2007) which exert significantly positive impacts on
do not mainly exist at level 4 and level of 5 of organizational performance.
conflicts of an autocratic culture where the
However, at level 1 of conflicts, conflicting
highly top-down boss favours using power to
goals, different viewpoints and information
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Int’l J. of Org. Bus. Excellence Vol. 4(2): 71 – 94 (2021)
Impact of Different Conflict Levels

sources are openly identified, then shared and engagement measure. In addition, their
discussed among members (Leas, 2012 and perception of opportunities for equal
Smith, 1992) which indicates that everyone in participation (participation equity) also
the team understands each other and the influences employees’ job satisfaction and
content of the conflicts and the conflicts are contribution to the organization (Mejias et al.,
not over issues that fundamentally ruin a 1996). Last but not least, satisfaction with
relationship that members can solve the decision quality which is the employees’
conflicts on their own (Weingarten & Leas, attitudes towards group decision process.
1987). Hence, although their role in group At the group level, the extent of agreement
communication is necessary and they facilitate or consensus among group members is
the decision-making process faster, their important in the context of the group with
impact is not considered effective in managing diverse cultural orientations (Mejias et al.,
conflicts. 1996). Consensus is based on the notion that
although each individual might not have been
H4: Under the influence of collaboration, a low totally contented with their overall decision,
level of conflicts (level 1) will not have a acceptance of group decisions, rather than
significantly positive impact on organizational unanimity, was satisfactory. According to Suter
performance. et al. (2009), group communication and
cohesiveness are important means for
Organisational Performance fostering effective role understanding in
There are two measures of organizational collaborative practice. Lack of clear
outcomes which are individual performance communication and cohesiveness among
and group performance. The elements in each employees, especially in a diverse culture, can
measure are extracted from the “Interactional hamper collaboration and organizational
model of the impact of diversity on individual performance since employees struggle to
career outcomes and organizational understand their specific job functions and
effectiveness” which are developed and strive for better performance (Harun &
modified by Cox (1994), McDonald (2003) and Mahmood, 2012). Additionally, organizational
Hanaoka (1999). To measure the effectiveness performance measurement should be based on
of collaborative conflict management styles on the achievement of goals and objectives that
organizational performance, our model will tie to the statement of organizational missions
analyze both individual level and group level or group purposes (Probst, 2009). These
performances. outcomes can reflect the effectiveness and
At the individual level, employees can be efficiency of group work and efforts of each
measured on their Engagement on how well individual as well as the further improvement
they cooperate and communicate with team in future organizational performance.
members and devote effort to participating in Furthermore, measuring an organizational
decision making to enhance organizational performance can be based on its success in
performance, especially in a culturally diverse creating changes. This is because “creativity
workplace where communication between and innovation in the workplace have become
people from different backgrounds is a truly important determinants of an
challenge. According to Markos and Sridevi organization’s performance, success as well as
(2010), employee engagement in decision long term survival” (Anderson, Potočnik &
making is a strong predictor of positive Zhou, 2014). The organizations always seek
organizational performance. Moreover, to their employees’ ideas and suggestions since
employees, failing to have a sense of belonging the process of idea generation and
or attachment to the organization can have a accomplishments have become a source of
negative effect on organizational productivity. competitive advantage (Anderson, Potočnik, &
Hence, a sense of belonging is a key employee Zhou, 2004; Zhou & Shalley, 2003). Problem-
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Int’l J. of Org. Bus. Excellence Vol. 4(2): 71 – 94 (2021)
Nguyen, Giang and Kumar, Vikas
solving skill/level is also one of importance. The ultimately result in different performance
more efficiently and effectively problems get outcomes comparing with those without
resolved, the greater the propensity for collaboration on conflicts. The focus of the
increased employee morale, productivity and research is to examine: at different levels of
profit. Therefore it has remained an important conflicts, how the collaborative conflict
endeavour for business. management style influences organizational
In culturally heterogeneous group’s conflicts, performance. Figure 4 presents the
the impact of collaboration on conflicts might hypothesized conceptual model:

Collaborative
Conflict
Management Style

Levels of conflicts Japanese organisation’s


performance

Low levels Individual Level


Level I: Problem to solve  Engagement and
Cooperation with group
members
Moderate levels  Involvement in group’s
1. Level II: decision making
Disagreement  Sense of belonging
 Participation Equity
2. Level III: Contest
 Satisfaction with Decision

Group performance
 Consensus/Agreement
 Group communication and
High levels
cohesiveness
1. Level IV: Fight
 Achievements of
2. Level V: goals/mission
Intractable  Creativity/Innovation
Situation  Problem-solving level

Figure 4. Conceptual model of conflict management

METHODS approach, the researcher can gain insights into


Research Strategy the research phenomenon, measure the
This research employs the quantitative variables, test the hypotheses as well as
research design (surveys) in collecting predict the prevalence of study results. This
information from foreign employees and approach benefits the researchers when they
Japanese employees in Japanese organizations collect information or data on large groups of
and companies. Through the quantitative the population. Moreover, it also provides
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Impact of Different Conflict Levels

reliability and validity of results. To broaden Japanese participants in the survey represent
understanding of the topic and prove the diverse regions, business types, gender, age,
reliability of theoretical points and strengthen working experience and education level in
the author’s argument, the research needs Japanese organisations of different sizes.
both primary and secondary data. The primary Participants were informed regarding the
data is gathered from surveys with foreign criteria to be eligible to participate in the study.
workers and Japanese workers in multicultural Due to the difficulty of the questionnaires
organizations in Japan while the secondary one which required respondents to be
is collected from books, journals, articles, etc. knowledgeable, considerate and thoughtful,
participants in the survey are mainly white-
Design Overview collar workers rather than blue-collar workers.
The research setting was conducted within 58 out of 65 responses were found to be valid
Japanese workplaces where Japanese and analysed. Table 1 provides the current
employees who used to work with foreigners sample of demographic data.
and foreign employees who used to work or are
currently working in Japan. The survey structure Table 1. Demographic characteristics of survey
of this study was designed originally in English respondents
and data collection would be from Japanese and Variable Category Number of Percentage
respondents
non-Japanese employees. A bilingual scholar Nationality Japanese 27 46,55%
translated the first English version of the survey Non-Japanese 31 53,45%
Working Less than 1 year 7 22,58%
into Japanese. To detect any possible deviation experience in 1-3 years 9 29,03%
between the original version of the Japanese 3-5 years 9 29,03%
organisations (only 5-10 years 5 16,13%
questionnaire structure and the translated for non-Japanese >10 years 1 3,23%
version, a second bilingual scholar back- employees)
Employment Full time 39 67,24%
translated the Japanese version into the English status Part time 19 32,76%
version by using a back-translation technique in Self employed 0 0
Unemployed 0 0
order to ensure conceptual consistency. A third In employment 0 0
bilingual scholar then translated the second training
version of the English survey back to Japanese. Type of contract Contemporary 34 58,26%
Permanent 24 41,38%
In the end, three bilingual scholars discussed Position in Staff 50 86,21%
the differences and determined the final company/organisa Team Leader/ 8 13,79%
tion Manager
Japanese version of the survey. Size of < 20 people 0 0
organisation 20- 50 people 7 12,07%
Pre-Test 50-100 people 5 8,62%
100-500 people 10 17,24%
Prior to conducting the pre-test, the survey 500-1000 people 12 20,69%
was reviewed by the academic researchers who More than 1000 24 41,38%
people
experienced in questionnaire design and next it Age range 18 - 24 26 45,61%
was piloted with three students and workers 25 - 30 17 29,82%
currently working in Japan. 31 - 40 9 15,79%
40 - 50 5 8,77%
Above 50 0 0
Sample
The link of questionnaires was distributed
through Social Media Tools including Linkedln, Measures
Facebook, Email and friends who are working The research variables include two main
in Japan. The researcher’s friends in Japan, in dependent variables with five elements each
turn, printed and distributed questionnaire (Main dependent variable 1: Individual
papers to their colleagues at the workplace performance and five elements including
which were later returned anonymously to my Engagement and Cooperation with group
researcher’s friends. Japanese and non- members, Involvement in group’s decision

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Int’l J. of Org. Bus. Excellence Vol. 4(2): 71 – 94 (2021)
Nguyen, Giang and Kumar, Vikas
making, sense of belonging, Participation mutual goals
Equity, Satisfaction with the decision) (Main
dependent variable 2: Team performance with Creativity/Innovati Sharing
five elements including Consensus/Agreement, on Innovative and
Group communication and cohesiveness, creative
ideas/suggestions
Achievements of goals/mission,
Problem-solving Speed of problem
Creativity/Innovation and Problem-solving level solving (PS)
level). The measurements of the dependent process and
variables are shown in Table 2. Meanwhile, the improvement of
independent Variables include Level I: Problem PS skills
to solve; Level II: Disagreement; Level III:
Contest; Level IV: Fight and Level V: Intractable
situation which is defined and clarified in Table
On the other hand, there is only one
3. Two main dependent variables and
moderating factor that is the CCMS adopted by
independent 5 variables were measured by a
the team leader/manager/supervisor. The
construct of 7-point Likert scales with the
measurement for this factor is “If your
degree of positive and negative impacts with 1
manager/team leader brings the issues
- extremely positive to 7 - extremely negative.
immediately up for open discussion and get
Table 2. Question title and question content to employees involved in sharing information and
measure the dependent variables analyzing the situation to come up with new
Question title Question content solutions that satisfy both sides”. The
Individual Engagement and Your motivation measurements for the effectiveness of CCMS is
performance Cooperation with to cooperate with shown in Table 4. By using the 7 point-Likert
group members colleagues scales with 1 to 7.
Involvement in Your effort to
group’s decision participate in Table 3. 5 Independent variables – 5 levels of
making group’s decision-
making (sharing
conflicts
Level 1 conflict Your differences and
your ideas etc)
(Problem to solve) misunderstanding are openly
Sense of belonging Your involvement identified, shared and discussed
and being a part among members.
of your Level 2 conflict You misunderstood and be
organisation (Disagreement) disappointed due to conflicting with
Participation Equity Your feeling of your cultural values and personal
being listened interests. However, instead of focusing
respectfully and on resolving the problems, you both
choose to avoid the criticism and
recognised
honest dialogues or confronting one
Satisfaction with Your satisfaction another about disappointment to save
Decision with the final face.
solutions/decision Level 3 conflict You are frustrated and resented by
s and expectation (Contest) arguments because your personal
that the decision values and interests are harmed. They
is successfully want to Exert Power on you, Point Out
carried out your Inaccuracies to win the debates
Group Consensus/Agreem Acceptance and than to solve the problems
Level 4 conflict You do not want to talk as you both
performance ent agreement of all
(Fight) consider each other as Opponents to
members to
Get rid of. Hurting colleagues is more
group's decisions important than either winning or
Group Strong social solving the problems
communication and bond among Level 5 conflict You both become aggressive, hopeless
cohesiveness members (Intractable and have cultural stereotypes against
Achievements of Accomplishment Situation) each other which eventually ruin your
goals/mission of tasks towards relationship. They want to eliminate or
destroy your reputation and position as
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Int’l J. of Org. Bus. Excellence Vol. 4(2): 71 – 94 (2021)
Impact of Different Conflict Levels

they are a source of threat. analysis of both constructs are shown in order
in Table 5 and 6.

Table 4. Measuring the effectiveness of Table 5. [Performance before CCMS] construct


moderating factor Item Item content Internal
Question title Question content correlation
Individual Engagement and I am likely and Q1 Your motivation to cooperate with 0,946
performance Cooperation with motivated to Japanese colleagues
group members cooperate with Q2 Your effort to participate in the 0,957
colleagues group’s decision-making (sharing
Involvement in I am willing to your ideas etc)
group’s decision participate in group’s Q3 Your involvement and being a part 0,961
making decision-making of your organisation
(Sharing ideas etc) Q4 Your feeling of being listened 0,964
Sense of belonging I feel proud of my respectfully and recognised
group membership Q5 Your satisfaction with the final 0,955
and staying in a group solutions/decisions and
feels valuable expectation that the decision is
Participation Equity I feel being listened successfully carried out
respectfully and Q6 Acceptance and agreement of all 0,957
recognised members to group's decisions
Satisfaction with I am satisfied with Q7 Willingness to communicate, 0,957
Decision final collaborate and commit among
solutions/decisions employees to build a strong social
and strongly expect bond
that the decision is Q8 Accomplishment of tasks towards 0,959
successfully carried mutual goals
out Q9 Sharing Innovative and creative 0,963
Group Consensus/Agreement Members happily ideas/suggestions
performance accept and agree to Q10 Speed of problem solving (PS) 0,943
groups’ decisions process and improvement of PS
Group communication Members are willing skills
and cohesiveness to communicate and Cronbach’s Alpha 0,992
collaborate to build a
strong social bond

Achievements of Members attempt to Table 6. [Performance under CCMS] construct


goals/mission complete tasks to Item Item content Internal
achieve mutual goals correlation
Creativity/Innovation Members openly Q1 I am motivated to cooperate with 0,893
share innovative and Japanese colleagues
creative Q2 I am willing to participate in 0,907
ideas/suggestions group’s decision-making (sharing
Problem-solving level Speed of problem your ideas etc)
solving is faster and Q3 I feel proud of their group 0,865
skill of problem membership, and staying in the
solving is more group feels valuable.
improved Q4 I feel being listened respectfully 0,894
and recognised
Q5 I am satisfied with the final 0,880
RESULTS AND DISCUSSIONS solutions/decisions and strongly
Construct Reliability Testing expect that the decision is
The research deploys two constructs using a successfully carried out
Q6 Members happily accept and 0,909
group of 10 Likert-scale questions, to measure agree to group's decisions
[Performance before CCMS] and [Performance Q7 Members are willing to 0,918
under CCMS]. In order to verify the internal communicate and collaborate to
build a strong social bond
consistency of these two constructs, the
Q8 Members attempt to complete 0,889
research employs the Cronbach’s Alpha testing tasks to achieve mutual goals
as it is considered the most appropriate for the Q9 Members openly share Innovative 0,908
current survey type. Results of the reliability and creative ideas/suggestions
Q10 Speed of problem solving (PS) is 0,844

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Nguyen, Giang and Kumar, Vikas
faster and and PS skills are more interaction of CCMS factor is significant or not.
improved
Cronbach’s Alpha 0,977
Hence, a two-way ANOVA test has been
conducted in accordance with each of the
Hypothesis Testing conflict level, with each result showing the
Since the research aims at clarifying the significance of the interaction between the
moderating effects of CCMS on the relationship independent variable conflict level and the
between different conflict levels and moderating factor CCMS on the dependent
performance level accordingly, the two-way variable performance. The results of the two-
Analysis of Variance (ANOVA) appears to be way ANOVA tests are shown respectively in
the most effective method to justify if the Table 7.
Table 7. Two-way ANOVA (CCMS) Result
Two-way ANOVA (CCMS)
Conflict Conflict Conflict Conflict Conflict
Level 1 Level 2 Level 3 Level 4 level 5
F p F p F p F p F p

Performance 3,063 0,083 156,117 0,000 183,875 0,000 140,760 0,000 83,828 0,000

The result of the two-way ANOVA has different view where SPSS technique is limited
shown no significant moderating effect of to do so. Hence, to provide a detailed picture
CCMS on the interaction between conflict level of how the collaboration has effects on
and performance at level 1 (p = 0,083 > 0,01), organisational performance at 5 levels of
and significant moderating effect with regard conflicts (especially level 4 and 5), the Scatter
to level 2, 3, 4 and 5 (p = 0,000). Therefore, Chart as depicted in Figure 5 explains further
from the statistics above, we can come to the and support the hypotheses testing.
conclusion that while H3 and H4 are strongly
supported, H2 is not supported. However, if the H1: Without conflict control or management
H2 is analysed from different angle by applying methods, levels of conflict have a negative
another different technique, it will show us a correlation with organizational performance

Figure 5. Correlation between levels of conflicts and organisational


performance

The research employs the Scatter Chart organisational performance” (Figure 6(a) and
“Correlation between levels of conflict and 6(b)). The result shown in the Scatter Chart

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Impact of Different Conflict Levels

reveals that without conflict management, the are motivated to work with colleagues to find
performance of Japanese organisations at the satisfactory solutions. However, when the
individual level and team level shows a conflict level is accelerated to a higher level,
negative movement from extremely-to- their emotion dominates the task issues and
moderately positive at level 1 to moderately- they no longer want to keep harmonious
to-extremely negative at level 5. Especially, it relationships with their colleagues. Hence, we
appears obvious that Japanese organisations can conclude that without conflict
have seen a considerably negative management, levels of conflict have a negative
performance of employees and group correlation with organisational performance.
performance when the conflict between
Japanese and non-Japanese employees have H2: Under the influence of collaboration, high
raised intensity from level 1 to level 2. It levels of conflicts (level 4 and 5) will not have
appears obvious that at a low level of conflict, significant positive impacts on organizational
respondents initially focus on task solving and performance

(a)

(b)

Figure 6(a) and 6(b). Comparison between “no conflict management” and
“under collaboration” performance at level 4 and 5 of conflicts

The result shown in the Scatter Chart the data produced by the SPSS technique.
reveals that under the effect of collaboration, However, the organisational performance is
the performance of Japanese organisations at still poor although the data has shown that
the individual level and team level at level 4 collaboration has exerted a significant positive
and 5 of conflict has witnessed a significant change on organisational performance, which
improvement. This chart is also supported by implies that despite the effort of managers or
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Int’l J. of Org. Bus. Excellence Vol. 4(2): 71 – 94 (2021)
Nguyen, Giang and Kumar, Vikas
team leaders in bringing the issues significant positive impact on organisational
immediately for open discussion, connecting performance. In conclusion, H2 has been
members, getting them involved in decision- supported.
making, members are still not eager to
cooperate with each other. Therefore, despite H3: Under the influence of collaboration,
having a considerable positive change in levels moderate levels of conflicts (level 2 and 3) will
of conflict, collaboration has not exerted any exert significantly positive impacts on
organizational performance

Figure 7. Comparison between “no conflict management” and “under


collaboration” performance at level 2 and 3 of conflicts

Using the same calculation method as at performance has been enhanced to become
level 4 and 5 of the conflict, the research has moderately positive. Similarly, under the
revealed a substantial improvement in conflict without any management from the
organisational performance at level 2 and level team leader, performance at level 3 at the
3 (Figure 7). Particularly, level 2 and 3 of moderately to the extremely negative state has
conflict has witnessed a significantly positive been improved to become slightly positive. The
transformation in performance at individual charts give a hint that at moderate levels of
and team level under the collaboration conflict conflict where employees are still eager and
management style. It is evidenced by the fact stimulated to cooperate with colleagues to
that at level 2 where the performance is solve the problems and identify key issues in
affected slightly or moderately negative by the the conflicts, the collaboration management
conflicts. By introducing the collaboration, the approach adopted by the managers or team

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Impact of Different Conflict Levels

leaders can foster the connection and H4: Under the influence of collaboration, a low
collaboration attitudes of employees to come level of conflicts (level 1) will not have a
up with the satisfactory decision for all parties. significantly positive impact on organizational
From the result, H3 is also supported. performance.

Figure 8. Comparison between “no conflict management” and “under


collaboration” performance at level 1 of conflicts

The Scatter Chart in Figure 8 has obviously The extant literature has shown no
shown no signs of change in organisational significant attempt in conducting an empirical
performance between “no conflict comparative study between performance
management” and “under collaboration” at before and after collaboration at different
level 1 of the conflict. At level 1 of the conflict, levels of conflicts. Realizing the serious lack of
the collaboration has actually not improved the knowledge in this area, the present research
organisational performance significantly aims to address the issue and challenge the
despite showing highly positive performance. It traditional line of reasoning with the
is clear that the performance has been expectation of uncovering the effectiveness of
enhanced from moderately positive to collaboration in different levels of conflicts in
extremely positive under managers or team Japanese organisation in order that Japanese
leaders’ collaborative conflict handling managers can utilize this approach the produce
approach. Nonetheless, it is not a considerable the best result of individual and group’s
transformation. It is easily understandable performance. From the findings, we can
since at level 1 of conflicts, conflicting goals, conclude that the collaboration exerts the
different viewpoints and information sources most positive influence on organisational
are frankly and publicly analysed, identified performance at level 2 and 3 of conflicts while
and discussed among members (Leas, 2012 there are no significant positive effects on the
and Smith, 1992) which implies that performance at level 1, 4 and 5. Moreover, the
differences and miscommunication are solved research also reveals that there is a strong
by employees themselves and strong negative correlation between the levels of
relationships are maintained (Weingarten & conflicts and organisational performance. It is
Leas, 1987). Hypothesis 4, as a result, is highly also noted from the research result that
supported. although there are three different perspectives
on conflicts and their impact on organisational
Discussions performance including “Conflicts are bad” (pre-
1970s), “Optimal conflicts” (the 1970s-1990s)
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Int’l J. of Org. Bus. Excellence Vol. 4(2): 71 – 94 (2021)
Nguyen, Giang and Kumar, Vikas
and “Two types of conflicts” (Modern), each colleagues, 25,81% of non-Japanese employees
view does not disclaim the value of other neither agree nor disagree. In response to
alternative views as well as not mention about openness and involvement in decision-making,
the conditions where conflicts are handled to all Japanese employees were willing to share
lead to productive or destructive performance thoughts and feelings as well as ideas in
results. Hence, from the result of this research, decision making whereas almost half of the
we can come to a conclusion that Conflicts are non-Japanese employees hesitated to share or
bad when they are not handled or interfered felt discouraged to get involved in decision-
with by the managers or leaders, especially at making. However, despite low involvement in
the high levels where employees are not able the decision-making process, both Japanese
to solve on their own; and Moderate levels of and non-Japanese employees agreed that they
conflicts are only beneficial to organisations felt being part of the organisations. This,
when employees can handle them by therefore, can be important information for
themselves or through the timely intervention Japanese managers to take a consideration so
of their managers or leaders to avoid the case that they can fill in this dissatisfaction gap.
that the conflicts escalate into higher
unmanageable levels where emotional issues CONCLUSIONS AND RECOMMENDATIONS
dominate the problem-solving issues. The research demonstrates efforts in
Apart from hypotheses testing, the study bridging the gap in the current literature
has also revealed some hidden facts. Task regarding the effects of collaboration
issues regarding conflicting goals, ideas and management styles on the outcomes of
solutions, and personal issues such as organisational performance at different levels
differences in lifestyle, perspectives and norms of conflicts. The research findings have
are the most faced conflicts in Japanese provided various meaningful insights through
organisations, Especially, the difference in which researchers can ground their studies to
cultural value is mainly the source of conflicts continue uncovering the potentials of different
which are raised between them and their conflict-handling approaches towards the
colleagues from different cultural backgrounds. success of organisational performance or
The majority of respondents revealed that external and internal factors in solving the
during their work life, the intensity levels of cultural diversity conflicts at different levels of
conflicts they have gone through the most are conflicts. Despite the lack of previous
level 2; however, instead of focusing on researches, an empirical comparative study
resolving the problems, they chose to avoid the using real-life data has been successfully
criticism and honest dialogues or confronting conducted and the study findings, though not
one another about disappointment to save generalizable onto the international level,
face. When the conflicts are intensified to level offering practical knowledge which can totally
3 where power is the main focus and members be applied to actual business practices.
aim to point out the inaccuracies to win the In addition to enhancing the theoretical
debates, while almost half of the respondents understanding, this research has important
still apply the CCMS by sharing information and practical implications for effective
analyzing the situation, the rest preferred to collaboration between Japanese and non-
withdraw from and ignore the conflicts to Japanese employees in Japanese organisations.
persevere the relationships. The higher the This study helps managers or team leaders
conflicts, the more likely propensity people identify the appropriate levels of conflicts for
choose to withdraw from the conflicts and achieving the highest outcomes of
some of them only chose to find the middle organisational performance as well as facilitate
group solution. More interestingly, while all the conflicts at low or moderate levels so that
Japanese respondents felt motivated and those conflicts will not accelerate into
encouraged to cooperate with non-Japanese uncontrollable levels. Furthermore, while
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Impact of Different Conflict Levels

opening up a variety of possibilities for future In light of our research findings, we have
researches, the study also gives several found a wide range of potential issues which
recommendations for any managers/team can become potential targets for future
leaders or organisations in handling cultural researches. First and foremost, the research
diversity conflicts. Firstly, leaders or managers respondent population might not fully
need to educate their team members to be represent the nature of a broader community.
sensitive to cross-cultural differences, train Due to the limitation of networks and research
them with collaborative negotiation skill and capability, the non-Japanese respondents are
adaptive intercultural communication that help mainly Vietnamese although respondents
the employees handle the conflicts by come from various backgrounds such as
themselves (Oetzel and Ting-Toomey, 2006). Thailand, Cambodia, Australia, Korea, China,
To achieve effective collaboration, employees Philippines, Indonesia or Germany. Since Asian
need to be able to explore issues and debate respondents dominate in the study, all of them
points in a constructive manner with their share a generally similar cultural background
colleagues from different backgrounds. Second, with Japanese culture; it might fail to challenge
serving as the team consultant, the leader the concept of cultural diversity conflicts
must build trust and a sense of belonging where conflicts are exposed to various unique
where team members believe they can share individuals from totally different backgrounds.
openly and address the conflicts without fear It is also interesting to know whether internal
of reprisal. Managing the emotional climate of factors such as job promotion, pensions or job
the team is also crucial to maintain the right opportunities or external factors such as
climate to address the conflict in order that the educational backgrounds or language barrier
negative conflict emotions will not push the can significantly alter the way employees
conflict to more intense levels where members handle and comprehend the content of
eliminate each other for acts of revenge. conflicts. Either researching by undertaking
Destructive can get out of control quickly so large-scale experiments (macro-level), or by
timely intervention is the key. It is also strongly breaking down the population into specific
recommended that constructive target segments and comparing the difference
communication techniques such as listening for between them (micro-level), we can expect
understanding, sharing thoughts and feelings, that these findings will certainly contribute to
perspective-taking and creating solutions our current wealth of knowledge.
should be applied to keep the conflict Secondly, the research survey was
conversations moving in a way to facilitate extremely long and complicated which
collaboration required a considerable investment of
Undoubtedly, the culturally diverse attention, time, energy and knowledge from
environment of the workplace has been respondents to answer carefully. Due to the
constantly changing and evolving, which complexity and length of the survey, the
requires researchers and business practitioners number of responses collected was relatively
to innovate and never stop staying ahead of low. Thus their answers might not completely
the new trends, as well as diversifying reflect their true thoughts of the general
ourselves and standing out from the crowd. population. Moreover, to collect the responses,
Under such a dynamic context, this study will friends of the researcher were asked to hand
set the cornerstone for future researches in out the survey papers to their colleagues. Even
the respective field of study as well as to though they caused absolutely no disturbance
contribute to the overall performance or manipulation to the process of answering
outcomes of Japanese organisations which the questionnaire of the participants, the
have invested a huge effort in utilizing the presence of their colleagues could be a
international labour force. potential influence on the reliability of the
respondents’ answers. Therefore, future
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Nguyen, Giang and Kumar, Vikas
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