Managing Inter organizational Conflicts in Distribution Channels

Contemporary business conditions are characterized by frequent occurrence of various conflicts, both within organizations as business systems, and between different organizations themselves. During their operations, business organizations inevitably deal with a variety of conflict situations with other organizations that they depend upon or are associated with their business activities. Conflicts may pose a threat, but also a stimulus for change and business improvement. In distribution channels there are very common various conflict situations between producers and trade representatives as intermediaries in distribution channels. It is important to identify the causes of conflicts in the channels. Adequate conflict management and effective conflict resolution can significantly improve operations of all parties to the conflict and contribute to increasing the efficiency of distribution channels. Therefore, this paper discusses the nature and sources of conflict and the possibility of changes due to conflict situations, and to analyze the causes and ways of resolving conflicts in the channels of distribution of food products in Bosnia and Herzegovina.