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A Tale of Two Factions: Exploring the Relationship between Factional Faultlines and Conflict Management in Pension Fund Boards

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  • Haan
  • Postma
  • Hermes
  • Veltrop

    (Groningen University)

Abstract

We examine the effect of factional demographic faultlines between two naturally occurring factions within Dutch pension fund boards on conflict management within these boards. Data on 313 Dutch pension fund boards confirm that factional demographic faultlines are positively related to competitive conflict management and moderately negatively related to cooperative conflict management. As predicted by faultline theory, these relationships are mediated by perceived subgroup formation. A noteworthy finding with clear managerial implications is that the disruptive effects from factional demographic faultlines are attenuated by board reflexivity. Moderated mediation analyses corroborate these findings.

Suggested Citation

  • Haan & Postma & Hermes & Veltrop, 2012. "A Tale of Two Factions: Exploring the Relationship between Factional Faultlines and Conflict Management in Pension Fund Boards," Research Report 12001-HRMOB, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    • Handle: RePEc:gro:rugsom:12001-hrmob
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    File URL: http://irs.ub.rug.nl/ppn/344367487
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    References listed on IDEAS

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    1. Caspar Rose, 2017. "The relationship between corporate governance characteristics and credit risk exposure in banks: implications for financial regulation," European Journal of Law and Economics, Springer, vol. 43(1), pages 167-194, February.

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