Factors Affecting Conflict Resolution Capacity: An Organizational Perspective from Construction Firms

Construction management, from the contractor’s perspective, is led by the Construction Manager (CM). The work motivation and leadership style of the CM are critical variables for the successful execution of construction projects. The scientific literature identifies participative leadership as the most effective style for mitigating conflicts among various stakeholders. However, analyzing the specific variables that influence a CM’s conflict resolution capacity remains an underexplored area. Furthermore, while the CM must act as a leader for their team (subcontractors, suppliers, etc.), they remain accountable to the contractor’s senior management. Therefore, this study aims to analyze the mediating role of CM motivation in the relationship between leadership and conflict resolution capacity using Partial Least Squares Structural Equation Modeling (PLS-SEM). In the construction industry, conflict resolution is not merely a situational fix but a critical process of capturing and externalizing tacit knowledge. Knowledge management and the ability to resolve conflicts in the construction sector are directly linked, critical, and strategic in nature. Construction is an industry characterized by fragmentation, the temporary nature of its projects, diversity of stakeholders (developers, builders, subcontractors, engineering firms) and a high level of uncertainty. In this environment, conflict is virtually inevitable. However, the way in which a CM handles a conflict determines whether it becomes a destructive dispute or an opportunity for improvement.