Task Conflict, Relationship Conflict, and Firm Performance: Evidence from Private Entrepreneurial Firms in China
Abstract
This study examines the determinants of conflict within entrepreneurial teams and its relationship with firm performance. Drawing on a large-scale questionnaire survey of privately owned entrepreneurial firms in China, it uses regression analysis to investigate how team composition relates to task conflict and relationship conflict, and how these forms of conflict are associated with managerial and firm performance outcomes.
The results indicate that demographic and structural differences within teams are associated with the emergence of conflict. In particular, greater diversity in age and educational background is associated with higher levels of task conflict, while relationship conflict is negatively associated with firm performance. The two types of conflict show distinct associations with performance, and these associations vary across stages of the entrepreneurial life cycle. Supplementary analyses of publicly available data on listed entrepreneurial firms suggest that team conflict and its performance implications can persist after an initial public offering.
The findings show that entrepreneurial team conflict helps explain differences in firm performance after accounting for structural and environmental conditions. By distinguishing between task conflict and relationship conflict across stages of venture development, the study clarifies how the nature and timing of conflict matter for entrepreneurial team management.
Keywords: Entrepreneurial teams, task conflict, relationship conflict, team heterogeneity, firm performance, venture life cycle, China.
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References
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