The mediating and moderating roles of employee satisfaction and team diversity on conflict management and organizational performance

Abstract

This study examines the impact of conflict management strategies on organizational performance, focusing on the mediating role of employee satisfaction and the moderating role of team diversity. By integrating social exchange theory (SET) and resource dependency theory (RDT), this study explores these dynamics in 147 manufacturing firms in Ghana. Data were collected through online questionnaires and analysed using partial least squares - structural equation model (PLS-SEM). The findings reveal that adopting collective bargaining, compromise, and accommodation strategies significantly enhances organizational performance, while the avoidance strategy has a detrimental effect. Moreover, employee satisfaction serves as a positive mediator in the relationship between conflict management and organizational performance. In addition, team diversity acts as a positive moderator, amplifying the benefits of effective conflict management strategies on performance. These findings underscore the critical role of strategic conflict management, employee satisfaction, and team diversity in achieving organizational success. This study provides actionable insights for managers and policymakers seeking to optimize organizational performance through effective conflict management practices, highlighting the importance of fostering a supportive and diverse work environment. By addressing these factors, organizations can better navigate conflicts and enhance their overall performance, contributing to sustainable growth and competitiveness.