Conflict resolution mechanisms, trust and perception of conflict in contractual agreements

The article determines which conflict resolution mechanisms are constructive and which are destructive, through analysing contractual agreements in European biotechnology enterprises. In the article, the term mechanism is used to refer to tools or the way in which conflicts are resolved. Conflict management in general, and conflict resolution in particular, is almost entirely determined by the understanding of conflict, and its perception. Conflict management is a dimension of co-operation. Researchers in the field of social psychology have documented five patterns of conflict management behaviour that typically emerge in group settings. The commonly reported styles of conflict management are avoidance, accommodation, competition, collaboration and compromise. Some partners include in contracts the possibility to appeal to an external party to facilitate negotiation when a conflict situation arises. In this case, they shift the control of the situation to a third party. Third parties do not have an incentive to behave unfairly towards either of the co-operating partners, thus they are more trustworthy.