Conflict Management, Team Coordination, and Performance Within Multicultural Temporary Projects Evidence From The Construction Industry
Conflict Management, Team Coordination, and Performance Within Multicultural Temporary Projects Evidence From The Construction Industry
Abstract
The purpose of our study is to enhance the understanding of rela2onships between conflict
management style, team coordina2on, and performance in mul2cultural project team contexts. We
inves2gate how conflict management can contribute to team effec2veness through the media2on of
the level of team coordina2on by collec2ng data from 126 team leaders and supervisors and 378
members nested in different mul2cultural projects in the construc2on industry. Our results show that,
contrary to the findings from prior research in other team contexts, an avoiding style of conflict
management can have a posi2ve impact on the performance of mul2cultural project teams.
Keywords
conflict management style, construc2on projects, team coordina2on, Malaysia, team performance,
temporary project organiza2ons
Introduc2on
Conflict is a process whereby one side perceives that self-interests are adversely influenced by another
party's ac2ons (Wall & Callister, 1995). This implies that conflict is a process incorpora2ng two or more
people or groups within which one party has to perceive the other party's ac2ons as in opposi2on to
its own. Researchers have asserted that conflict is a common trait in every teamwork ac2vity and
inherent within daily interac2ons (Jehn & Mannix, 2001; Jia, Yang, Wang, Hong, & You, 2011; Müller,
Turner, Andersen, Shao, & Kvalnes, 2016; Tjosvold, 2008). Prior works highlighted that the way a team
deals with conflict significantly impacts its performance (De Dreu & Gelfand, 2008; Liu & Cross, 2016;
Prieto-Remón, Cobo-Benita, Or2z-Marcos, & Uruburu, 2015; Tjosvold, 2008; Yousefi, Hipel, & Hegazy,
2010). However, conflict is seen not only to have harmful consequences but also to be remarkably
construc2ve in some team-based work environments (De Dreu, 2007; De Dreu & Gelfand, 2008; Jehn
& Mannix, 2001; Li & Li, 2009; Tjosvold, 2008). Team members’ percep2on of the way in which their
desired goals may be affected by ac2ons significantly influences both the nature of interac2ons and
the final results of conflict management (Deutsch, 1990). Preceding studies also outlined that conflict
is more likely to arise and escalate when cultural differences are present among the par2es (Fisher,
1990). Consequently, different cultures may possibly use different methods in dealing with conflict in
the course of managing mul2cultural teams. It has also been noted that how a team manages conflict
greatly affects team performance (De Dreu, 2007; De Dreu & Gelfand, 2008; Jehn & Mannix, 2001;
Tjosvold, 2008). Consequently, different approaches to managing conflict in group environments may
affect the way teams are coordina2ng. Furthermore, earlier research in predominantly Western
contexts suggests that in temporary organiza2ons, the coordina2on of a team influences team
efficiency along with overall project performance (Mitropoulos & Cupido, 2009; O'Leary-Kelly,
Martocchio, & Frink, 1994; Sto@ & Walker, 1995). However, these rela2onships have not been widely
tested in other cultural contexts, such as East Asia.
In temporary organiza2ons, coordina2on is a core competency of the team leader (Project
Management Ins2tute, 2017). Coordina2on issues have been emphasized by researchers in a wide
range of contexts, including organiza2onal design, technology adop2on and innova2on, and group
compe22on, to name just a few (De Dreu, 2007; Müller et al., 2016; Yousefi et al., 2010; Zhang, Cao, &
Tjosvold, 2011). Team coordina2on in many temporary organiza2ons, such as those in the
construc2on industry, takes place in the context of highly complex and dynamic environments
(Loosemore, Dainty, & Lingard, 2003). Therefore, it presents a challenging context for achieving
effec2ve teamwork (Tabassi & Bakar, 2009; Tabassi, Ramli, & Bakar, 2012).
To contribute to our understanding of one par2cular challenging context, the objec2ve of this study is
to inves2gate the rela2onships between conflict management approaches, team coordina2on, and
the performance of mul2cultural project teams. Our understanding of the mechanisms by which team
leaders exert influence at the team level, through such ac2ons as conflict management and
coordina2on, is s2ll limited (Sun, Xu, & Shang, 2014); hence, by inves2ga2ng the prac2ces and
performance of project teams in this context, our study has significant theore2cal contribu2ons.
The empirical context for this study was the Malaysian construc2on industry. This industry was chosen
because the temporary organiza2ons undertaking projects in this sector are typically mul2cultural,
being made up of three main ethnic groups, with each having their own cultural norms and values:
Malays, Chinese, and Indians. This reflects the composi2on of the general popula2on in the country
(i.e., in 2010, Malays made up 60.3%, Chinese 24.6%, and Indians 7.1% of the total popula2on)
(Department of Sta2s2cs Malaysia, 2018). Generally, the limited prior research has inves2gated East
Asians’ approaches to managing conflict, specifically looking at temporary mul2cultural (TMC) teams.
Furthermore, in project management, as with other management disciplines, people-related issues
have been geung more a@en2on in East Asian countries, such as Malaysia, as firms are recognizing
the impact of the management of human resources on organiza2onal performance (Chen, Uen, &
Chen, 2016).
We sought to answer the following broad ques2on: How do Malaysians approach the management of
conflict in TMC teams, and do these approaches lead to different outcomes, in terms of team
coordina2on and performance? We sought to answer this ques2on through a hierarchical regression
analysis of data from 126 teams in TMC organiza2ons undertaking construc2on projects in Malaysia.
Conflict-Handling Styles
The rapid growth of complex projects in the construc2on industry across the world has resulted in
varied interorganiza2onal conflicts (Hu, Chen, Gu, Huang, & Liu, 2017; Wu, Zhao, & Zuo, 2017). The
influences of conflicts among team members on project performance in the industry could be
destruc2ve or construc2ve, relying on plenty of variables, such as conflict management style of
leaders, nature of conflict, the percep2ons of team members in working with conflict, and so on (Wu
et al., 2017). However, there are different conflict-handling styles that individuals may employ when
interac2ng with others in interpersonal or business engagements (Chiocchio, Forgues, Paradis, &
Iordanova, 2011; Kleinman, Palmon, & Lee, 2003; Wu et al., 2017). Effec2ve styles lead to conflict
resolu2on, enhance work steadiness (Wu et al., 2017), promote feelings of self-efficacy among team
members, minimize the likelihood of nega2ve conflicts in future work, and also result in a company's
long-term financial growth (Cheung & Chuah, 1999; Rubin, Prui@, & Kim, 1994).
Pressure to come to an agreement (Baron, 1988), power differences (Zartman & Touval, 1985),
complexity of the organiza2on's task (Chiocchio et al., 2011), interdependence of the units (Lawrence
& Lorsch, 1986), and culture and leadership styles (Chiocchio et al., 2011; Kozan, 1989) all influence
the way conflict ought to be managed. The literature indicates that the success or otherwise of dealing
with conflict has a direct impact on the project performance of temporary organiza2ons (Lundin &
Soderholm, 1995; Müller et al., 2016). In such organiza2ons, the nega2ve consequences of a failure to
deal with conflict have two root causes: first, failure to deal with technical conflicts that arise from
different role perspec2ves (Chen, Zhang, & Zhang, 2014), and second, distrust among team members
or different personal behaviors (Tjosvold, 2008). As stated above, conflict per se is not necessarily
nega2ve. Therefore, conflict should be effec2vely managed in order to realize the op2mum level
(Leung, Yu, & Liang, 2014).
A number of theore2cal styles of dealing with interpersonal conflict have been proposed (Kleinman et
al., 2003; Rahim & Magner, 1995; Rubin et al., 1994). These theorists build on the pioneering work of
Blake and Mouton (1964), who classed conflict-managing strategies into five styles: forcing,
withdrawing, smoothing, compromising, and confronta2on. The authors further grouped these five
strategies under two broad dimensions, which are associated with the behavior of the team leader,
namely: (1) concern for people, and (2) concern for task. In 1976, Blake and Mouton's styles for
handling conflicts in team environments were reviewed and refined by Thomas (1976, cited in Rahim
& Magner, 1995). Thomas also grouped the methods of coping with conflict into five styles, and he
also iden2fied two main dimensions: (1) coopera2veness, within which individual's concerns are
higher for peers; and (2) asser2veness, when self-concerns are more significant. Along with these two
dimensions, five different conflict resolu2on styles were presented, based on the degree to which an
individual prac2ces coopera2veness or asser2veness: coopera2ve, compe22ve, accommoda2ng,
avoiding, and compromising (Rahim & Magner, 1995).
Coopera2ve Approach to Conflict Management and Team Coordina2on
Interdependence in conflict management, which was proposed by Deutsch (1990), outlines a scenario
in which individuals value peers’ abili2es and op2ons, which primarily leads to coopera2ve goal
achievement and open communica2on in dealing with conflict (Tjosvold et al., 2001). In the event that
people feel they need others’ abili2es, opinions, and resources, they are more likely to be encouraged
to cope with conflict coopera2vely. Accordingly, they may also reach a point where to have a long-
term rela2onship and to be able to con2nue to work together in an effec2ve fashion, it would be
necessary to resolve conflict coopera2vely for mutual gain. Project managers with coopera2ve conflict
management style are more open in coping with conflict and even rated as more successful leaders.
Moreover, it can be concluded that mutual dependence aids coopera2ve conflict management, which
could result in be@er project coordina2on. In collec2vist socie2es, such as China, where empirical
study has been undertaken, it has also been found that managing conflict coopera2vely can lead to
higher percep2ons of fair treatment among individuals, which in turn leads to be@er team
performance (Chen & Tjosvold, 2002).
In terms of achieving win-win situa2ons, a coopera2ve style encourages open-minded interac2ons, in
order to realize opposing concepts, assimilate opposing views, develop acceptable alterna2ves, and
strengthen individuals’ rela2onships. This results in mutual solu2ons that are favorable to both par2es
(Walton & McKersie, 1965). Team members can adopt a coopera2ve conflict resolu2on strategy by
concentra2ng on their shared aims. They will demonstrate that they seek mutual profit from an
ac2vity, are seeking to solicit everyone's point of view, and are available to integrate different
sugges2ons in order to set up a mutually prac2cal solu2on (Deutsch, 1990; Tjosvold, 1985). A
coopera2ve style is characterized by open communica2on, responsiveness to others, shared
understanding, and the development of mutually favorable alterna2ves (Ayoko, 2016; Sanders &
Schyns, 2006).
A coopera2ve conflict management style is seen to promote high team performance and desirable
individual behavior (Tjosvold, Poon, & Yu, 2005). In addi2on, teams that are able to deal with conflict
coopera2vely are also able to improve their own performance (Tjosvold, Hui, & Yu, 2003). Specifically,
expressions of individual sa2sfac2on of being part of the team, team efficacy, boosts to innova2on and
crea2vity, and be@er goal achievement are all claimed as outcomes of coopera2ve approaches to the
management of conflict (Tjosvold, 2008).
It is hypothesized that there will be a posi2ve rela2onship between this style of conflict management
and team coordina2on. Hence, the first hypothesis to test is:
H1: The coopera2ve conflict management approach within the TMC organiza2on undertaking projects
is posi2vely related to effec2ve team coordina2on.
Compe22ve Approach to Conflict Management and Team Coordina2on
Compe22ve conflict increases independence among team members. A compe22ve style (high
concern for self and low concern for others) has been linked with a win-lose scenario. This is a
confronta2onal approach that leads to one side capitula2ng to the other. Yang, Cheng, and Chuang
(2013) listed some of the commonly used tac2cs in this style, which include: direct communica2on
with regard to the issues, persistent disagreement with other par2es’ opinion and remaining rooted to
one's own posi2on, and a@empts to seize control of communica2on channels.
Managers or team leaders who implement this strategy typically impose their thoughts or opinions
onto their subordinates, and the conflict owen ends with undesirable results. Such leaders emphasize
their compe22ve pursuits, which may result in others moving away from a@ainment of the project
goal. They are inclined to look at conflict as a win-lose challenge: If the other wins, they lose. This
discourages effec2ve communica2on and leads to the imposi2on of an opinion by the most powerful
party on the conflict. Individuals with more focus on independence and with less emphasis on
interdependence may gravitate toward the compe22ve style in coping with conflict, which increases
the probability of a perceived maximum personal gain, as opposed to the gain in win-win situa2ons
(De Dreu & Gelfand, 2008; Prieto-Remón et al., 2015; Tjosvold, 2008). To explore the impact of the
compe22ve style of conflict on the workings of the team, in the context of the effec2veness of
coordina2on ac2vi2es, we hypothesized that a nega2ve rela2onship exists between this style of
conflict management and team coordina2on:
H2: The compe22ve conflict management approach within the TMC organiza2on undertaking projects
is nega2vely related to effec2ve team coordina2on.
Avoiding Approach to Conflict Management and Team Coordina2on
The avoiding approach seeks to smooth over conflicts quickly, by minimizing dialogue on the issues.
The avoiding conflict management style typically is predicated on the fact that pixalls and issues
should not be brought into the open and discussed between the par2es. It is characterized as having
low concern for the self and for others and seeks ac2ons that will serve to limit dealing with the
conflict clearly, either by disregarding it or switching discussions to a new subject. This style of conflict
management has been compared to disengagement, buck-passing, and sidestepping scenarios
(Rahim, 2002). Those who adopt this style of conflict management do not show strong emo2ons of
anger and irrita2on. They are inclined to act as if they are indifferent both to their own personal
concerns and to the concerns of other team members.
An avoiding style of conflict management has been observed in East Asian contexts. The East Asian
collec2vist cultures tend to be thought to focus on interdependence and a tacit acknowledgment that
individuals greatly depend upon each other (Tjosvold, 2008; Tjosvold et al., 2001). Accordingly, some
people may adopt this style of conflict resolu2on only because they intend to maintain their
rela2onships, which might, however, result in dysfunc2onal project team opera2on. To explore the
likelihood of such an outcome arising from prac2cing the avoidance style of conflict management, we
generate our third hypothesis:
H3: The avoiding conflict management approach within the TMC organiza2on undertaking projects is
nega2vely related to effec2ve team coordina2on.
Accommoda2ng Approach to Conflict Management and Team Coordina2on
An accommoda2ng style (low concern for self and high concern for others) is characterized by an
imperfect assessment of alternate op2ons, as well as one-sided func2ons of giving in to others, which
usually results in lower quality decision making (Kuhn & Poole, 2000). An accommoda2ng individual
disregards her own concerns in order to take care of others’. This style of conflict management usually
happens when conflicts are going to be managed with superiors, in par2cular, whenever the managers
or superiors are seen as being quite domina2ng. In addi2on to the above, an accommoda2ng
approach has been observed in situa2ons where personal interests clash with those of the project,
organiza2on, or even when a minority point of view conflicts with that of the majority. It is associated
with amenable behavior that consists of puung aside one's own desires in order to be able to sa2sfy
the other party, agreeing with the other party's decisions, and giving way to the arguments or
statements of others by denying or declining to express one's own ideas (Liu, Fu, & Liu, 2009). Such
behaviors may well nega2vely impact the func2oning of the team; hence, our fourth hypothesis is:
H4: The accommoda2ng conflict resolu2on approach within the TMC organiza2on undertaking
projects is nega2vely related to effec2ve team coordina2on.
Compromising Approach to Conflict Management and Team Coordina2on
The compromising conflict management style is placed in the middle of the con2nuum of the two
dimensions: concern for self, and concern for others. Compromising strategies exhibit moderate
a@en2on to seek mutual agreements, but have less interest in puung forth a collabora2ve effort to
achieve them. This style has been characterized as a half-hearted problem-solving alterna2ve (Prui@,
Kim, & Rubin, 2004). Both sides could possibly achieve certain benefits, as well as some losses,
through the give-and-take in which each party may give up some necessary desires or targets—with a
less-than-op2mal result being agreed upon (Rahim & Magner, 1995). People typically adopt this style
in the event that a willingness to unravel the root causes of conflict is not completely sustained. A
compromising approach entails different tac2cs, such as: bowing to the concept of jus2ce, advising on
trade-offs, increasing gains and reducing losses, mee2ng the par2es midway, spliung the costs of
varia2ons, and looking for rapid and short-term resolu2on to the conflict at hand (Liu et al., 2009). It
has also been outlined as unique in the sense that it focuses on mee2ng the individual's self-needs
along with the needs of others (Gross & Guerrero, 2000). Compromising is typically perceived as an
essen2al complement to other strategies in solving conflicts in not only Western organiza2onal
contexts and companies, but also in some East Asian environments (e.g., styles adopted by Chinese
managers [Liu et al., 2009]). Prior research suggests that a compromising style has posi2ve
consequences on the innova2on success of companies (Gobeli, Koenig, & Bechinger, 1998), is
posi2vely related to team performance (Coetzer & Trimble, 2010), and is nega2vely related to harmful
aspects of conflicts (Vollmer, 2015). Hence, our fiwh hypothesis is as follows:
H5: The compromising conflict management approach within the TMC organiza2on undertaking
projects team is posi2vely related to effec2ve team coordina2on.
Conceptual Framework Development
The term performance in a group work environment has been widely put in place to reflect the
ac2vi2es’ ul2mate outcomes as well as to figure out whether or not an individual and/or a team is
remaining produc2ve (Tabassi, Roufechaei, Bakar, & NorAini, 2017). In the construc2on industry,
different project teams mostly form the focal point of project delivery. For that reason, the dynamic
transforming characteris2cs of construc2on ac2vi2es demand construc2on organiza2ons to gain or
even develop several teams whenever a new project or a new phase of a project is carried out (Raiden
& Dainty, 2006). Therefore, any techniques and procedures that are appointed by the organiza2on as a
means to further improve teamwork coordina2on could possibly convey favorable results to the
overall team or project performance (Tabassi, Ramli, Roufechaei, & Tabassi, 2014; Tabassi et al., 2017).
Thus far, research on conflict management has shown more focus on the rela2onships between
conflict-handling style of the leader and team performance (De Dreu & Gelfand, 2008; Prieto-Remón
et al., 2015; Rahim, 2002; Tjosvold, 2008; Tjosvold et al., 2001). Alterna2vely, the rela2onship
between team coordina2on and team performance has been the focus of a number of prior studies in
the management literature (Banks, Pollack, & Seers, 2016; Rico, Sánchez-Manzanares, Gil, & Gibson,
2008; Tuncdogan, Boon, Mom, Bosch, & Volberda, 2017; Yukl, 2006; Zhang et al., 2011). Coordina2on
processes involve the ac2vi2es orchestra2ng the rela2onship and scheduling interdependent tasks in
the team environment (e.g., managing work, seung up the tasks of each member, and detailing
guidelines and regular procedures) (Yukl, 2006; Zalesny, Salas, & Prince, 1995). In the same way,
coordina2on ac2vi2es are observed as necessary conduct for teams to be able to exchange
informa2on and straighten the course of team member ac2ons (Marks, Mathieu, & Zaccaro, 2001;
Tuncdogan et al., 2017). Even though we are aware of the cri2cal rela2onship between conflict
management and team performance, limited studies have examined the conflict management style of
leaders, coordina2on, and performance together, par2cularly in mul2cultural team environments in
the construc2on industry. We contribute to enriching such an understanding by inves2ga2ng the
media2ng role of coordina2on mechanisms. The overall conceptual framework for the research
reported in this ar2cle is depicted in Figure 1. The hypotheses focus on three specific rela2onships:
the link between conflict management approaches and team coordina2on; the link between team
coordina2on and team performance; and the link between conflict management approaches and
team performance, mediated by team coordina2on.
The rWG(J) index applies the Spearman-Brown prophecy method to incorporate the number of items in
the calcula2on of within-group agreement. Hence, J is the number of items in a measure and Sk2 is the
average variance of the J items in a group of k-raters.
The study evaluates the theorized model (Figure 1) by u2lizing a mul2level design (Ju, Qin, & Xu, 2016)
with individuals (level 1) nested in projects (level 2). Data were collected from three different level 1
sources: Team members rated the five approaches to conflict management that could be exhibited by
team leaders, including coopera2ve, compe22ve, accommoda2ng, avoiding, and compromising; the
team leaders evaluated the level of team coordina2on; and last, the supervisor of each team rated the
team performance. As outlined by Zhang et al. (2011), this method of data collec2on will reduce the
risk of common method variance (CMV) as a possible alterna2ve for jus2fica2on of the results.
With regard to data collec2on, three dis2nct types of survey ques2onnaires were dispersed between
the respondents. The measurement of items was done primarily using the Likert scale of five ordinal
measures, from one (1) to five (5), based on the degree of importance/agreement. An invita2on no2ce
was delivered to 800 large-sized construc2on firms in Malaysia. At the end of a six-month period, 126
teams had agreed to par2cipate in the research. Seven research officers were then directed to the
respondent companies in several loca2ons in Malaysia. In order to reduce likely bias, the three
members from each team were randomly selected to assess the conflict management style of their
team leader.
Sample
The respondents incorporated 378 members of 126 construc2on project teams in Malaysia and their
equivalent 126 team leaders, along with supervisors from the upper-level administra2ve headquarters
for each organiza2on. The minimum sample size was verified and a reac2ve Monte Carlo analysis was
carried out (Chin, 1998). Consequently, the sample size of 126 surpassed the suggested minimum of
54 that is considered sufficient for model tes2ng (Green, 1991).
The size of the teams ranged from three to above 20 members, having an average of six to 10
(Standard Devia2on = 1.47). For all of the team members (excluding team leaders), 48.9% were female
and 50% were male (1.1% did not clarify their gender). The percentages of different ethnic groups
among the team members were: Malay 25.1, Chinese 58, Indian 16, and others 0.9. The degree of
experience in the construc2on industry pertaining to the team members revealed that 55% had one to
five years of experience and 33.6% had six to 10. In terms of educa2on, 71.7% had a bachelor's degree
or higher, 22.4% had acquired a diploma from junior colleges, and 5.9% graduated from technical
secondary schools or others. Furthermore, 61.9% of the team leaders were male and 66.7% had six
years or more experience in the industry. The percentages of different ethnici2es for team leaders
were: Malay 28.6, Chinese 43.7, Indian 27, and others 0.8. With regard to their educa2onal levels,
77.8% had a bachelor's degree or higher, and the rest had graduated from junior colleges.
Data Analysis and Results
To analyze the data and evaluate the hierarchical hypothesized model, Smart PLS path modeling (PLS-
PM) was used, with a path-weigh2ng scheme for inside approxima2on (Chin, 2010; Tenenhaus, Vinzi,
Chatelin, & Lauro, 2005; Wetzels, Schroder, & Oppen, 2009). Subsequently, nonparametric
bootstrapping was employed with 500 replica2ons in order to be able to a@ain the standard es2mate
errors (Chin, 2010). To assess the higher order latent variables, the method of repeated indicators was
also applied, as outlined by Wold (1985), Lohmöller (1989), and Efron and Tibshiran (1993).
Conflict Management Assessment
The degree of explained variance in the hierarchical model was reflected in its components:
coopera2ve (62.6%), compe22ve (1.1%), accommoda2ng (–2.5%), avoiding (23.6%), and
compromising (4%). However, only the path coefficient from the coopera2ve approach to team
coordina2on was sta2s2cally significant (at p < 0.01). In addi2on, the avoiding approach to conflict
management showed a p value less than 0.1, which is par2ally significant to team coordina2on. The
composite reliability (CR) and average variance extracted (AVE) of all constructs were above 0.7 and
0.5, respec2vely, which exceed the recommended cutoff values (Hair, Hult, Ringle, & Sarstedt, 2014).
The rWG(J) index scores for each conflict management style were as follows: coopera2ve (0.908),
compe22ve (0.899), accommoda2ng (0.91), avoiding (0.913), and compromising (0.908).
Despite the fact that generally there is some disagreement related to the cutoff value rWG (Lance et al.,
2006), these values are higher than the commonly agreed-upon 0.70 value. Furthermore, the
percentage of rWG > 0.70 for the aggregated parameters was calculated to be 86%. Addi2onal analysis
was carried out and there was no team with an rWG lower than 0.50 across any given construct.
The Measurement Model
To assess the components of the measurement scales, a confirmatory factor analysis (CFA) was
performed, based on the procedure of Chin (2010), to assess the reliability, convergent validity, and
discriminant validity of the scales (see Tables 1 and 2). Table 1 shows the results of CMV.
The AVE for all constructs was more than 0.5 and the CR of the constructs was above 0.7. These values
are above the minimum recommended levels, so as a result CMV was not been deemed to be an issue
in this study (Fornell & Larcker, 1981; Gefen, Straub, & Boudreau, 2000). Also, as revealed by Table 1,
most of the item loadings were close to or larger than 0.7 and significant at 0.01. The items for the
coopera2ve style of conflict management exhibited the lowest CR of 0.7891; even so, all values were
higher than the recommended standard values. The results confirmed convergent validity, as all
indicators loaded significantly higher onto their par2cular hypothesized component as compared to
other factors (own construct loadings were greater than cross loadings; see Chin, 2010). The Fornell-
Larcker criterion approach was used to assess discriminant validity. The square root of the AVEs were
calculated and compared with the latent variable correla2ons. The results, which are presented in
Table 2, demonstrate discriminant validity, as the square root of each construct's AVE was higher than
its largest correla2on, compared with any other construct in the model (Chin, 2010; Fornell & Larcker,
1981). Furthermore, there was no correla2on higher than 0.9 among the constructs observed (Chin,
2010), except for the compromising style of conflict management construct, which was exactly 0.9. As
a result, the proposed model was deemed to be sa2sfactory, with proof of sufficient reliability,
convergent validity, and discriminant validity, and was accepted for evalua2ng the hypotheses and
valida2ng the research model.
Table 1. Common Method Variance
Note: CR = composite reliability; AVE = average variance extracted.
Assessment of the Structural Model
In Table 3, the results give a standardized beta of 0.24 from the avoiding style of conflict management
to team coordina2on, 0.63 from coopera2ve style to team coordina2on, 0.11 from coopera2ve style
to team performance, and 0.35 from team coordina2on to team performance.
Thus, there was support for H6: team coordina2on is posi2vely related to team performance within
the TMC organiza2on and for the alterna2ve to H1: the coopera2ve conflict management approach
within the TMC organiza2on undertaking projects is posi2vely related to effec2ve team coordina2on.
The other two conflict management approaches, which showed some posi2ve rela2onship with team
coordina2on, compe22ve and compromising, were not sta2s2cally significant. Hence, H2 and H5 are
not supported. The results showed that the avoiding conflict management style posi2vely related to
team coordina2on, being significant at the 0.1 level. So, H3 has been rejected and there is support for
the alterna2ve hypothesis to H3, which can be refined as: The avoiding conflict management approach
within the TMC organiza2on undertaking projects is posi2vely related to effec2ve team coordina2on.
However, the accommoda2ng conflict management style showed a nega2ve rela2onship with team
coordina2on, but it was not sta2s2cally significant. So, H4 was not supported.
Media2ng Effects
In Figure 2, the media2ng effect of team coordina2on on the rela2onship between the conflict
management styles and team performance was analyzed, and H7: team coordina2on mediates
between conflict management approaches and team performance within the TMC organiza2on was
tested. Three criteria for media2on analysis were established as follows:
• Two independent variables (avoiding and coopera2ve styles of conflict management) had a
significant effect on the mediator (team coordina2on);
• The mediator (team coordina2on) had a significant influence on the dependent variable (team
performance); and
• Two independent variables (avoiding and coopera2ve styles of handling conflict) had a
significant influence on the dependent variable in the absence of the influence of the
mediator.
To set up the media2ng influence, the indirect impact of a × b (see Figure 2) must be significant.
The z-sta2s2cs test (Sobel, 1982) was employed, which was significant at p < 0.05. If the z values
surpass 1.96 (p < 0.05), then H2 can be accepted—that is, there is an indirect effect from the conflict
management style (in this par2cular case, avoiding and coopera2ve styles of handling conflict),
through team coordina2on, on team performance. The z values are calculated as follows:
As displayed in Figure 2, there was a significant effect from the coopera2ve conflict management style
on team coordina2on (0.626, p < 0.01), as well as from team coordina2on on team performance
(0.35, p < 0.01). The z value was greater than 1.96 (p < 0.05); consequently, the result confirms the
media2ng role of team coordina2on, indica2ng that it has an indirect effect on team performance—
hence, H7 is supported.
Table 2. Correla2ons Among Constructs
There was also a significant effect from the avoiding conflict management style on team coordina2on
(0.236, p < 0.01) as well as from team coordina2on on team performance (0.35, p < 0.01, see Figure
2). The z value also exceeds 1.96 (p < 0.05).
To approximate the size of the indirect effect in the model, the variance accounted for (VAF) value was
calculated, which represents the ra2o of the indirect effect to the total effect. The VAF value for the
first model (see Figure 2) shows that almost 67.1% of the total effect of the coopera2ve conflict
management style on team performance is explained by an indirect effect (team coordina2on).
The VAF value for the second model (see Figure 2) indicates that nearly 21.5% of the total effect of the
avoiding conflict management style on team performance is accounted for by the indirect effect (team
coordina2on).