In a study of conflict in organizations, Lindenberg’s relational signaling theory is used to develop hypotheses on the impact of relationship strength, network embeddedness, and organizational change on social escalation. Social escalation is defined as the involvement of one or more third parties in a conflict. An empirical test is conducted with data on 67 conflicts involving 22 managers, gathered during three years of ethnographic fieldwork and a longitudinal network study in a management team of a German paper factory. Multilevel analysis indicates that strong ties between conflicting parties decrease the level of social escalation, whereas informal power advantage of one party increases the chances for social escalation. Both effects disappear over time. It is argued that the dissolving impact of relationships and networks is due to the disappearance of so-called solidarity frame-stabilizing activities in the firm. The results highlight the context-dependence of network effects and escalation processes.

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