The study empirically links conflict management literature with research on efficacy and organizational teams. Sixty‐one self‐managing teams with 489 employees were recruited from the production department of a leading electronic manufacturer. Structural equation analysis supports the model that a cooperative instead of competitive approach to conflict leads to conflict efficacy that in turn results in effective performance as measured by managers. Findings suggest how organizational teams can be prepared to make use of their autonomy to deal with problems and conflicts so that they are productive.
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