Synthesizing theories of social identity, goal interdependence, and conflict management, this study built and tested a theoretical model in which interdepartmental goal interdependence affects conflict outcomes between different departments through constructive controversy (i.e. the open-minded discussion for mutual benefit) dynamics adopted by employees from different departments in the organization. This study also proposes that organizational identification moderates the link between interdepartmental goal interdependence and constructive controversy. An interview sample of 129 employees from various business organizations and diverse industries in mainland China described and rated a critical incident when they had a conflict with their coworker from another department in the same organization. Results of the structural equations modeling and other analyses support the hypotheses and the hypothesized model that interdepartmental goal interdependence, specially, cooperative, competitive, and independent goals, are antecedents to employees between different departments engaging in constructive controversy and that constructive controversy in turn influences conflict outcomes, specifically, task accomplishment, employee intention to quit, and their intentions for future cooperation. Results further indicate that employee identification with the organization moderates the association of competitive interdepartmental goal interdependence with constructive controversy such that employees who identify strongly with the organization will be more likely to engage in open-minded discussion of controversy dynamics than employees who identify weakly with the organization. These results underline the positive role of employee organizational identification in conflict management, especially under competitive interdepartmental goals. Findings suggest important practical implications that employees from different departments can improve their collaboration in Chinese organizations by strengthening their common organizational identification, setting cooperative interdepartmental goal interdependence, and handling conflict through constructive controversy. The study contributes to the conflict management literature as well as the social identity theory in organizational behavior literature.

Combining theories of social motives, goal interdependence, and conflict management, this study theorized a model in which interdepartmental goal interdependence affects conflict outcomes between different departments through open-minded discussion dynamics adopted by employees from different departments in the organization. This study also proposes that social motives moderate the link between inter-departmental goal interdependence and open-minded discussion. A sample of 133 employees from different business organizations in China were interviewed to recall a critical incident when they had a conflict with their coworker from different departments. SEM results and other analysis results support the hypotheses that cooperative interdepartmental goal interdependence and competitive goal interdependence are antecedents to employees engaging in open-minded discussion in the context of interdepartmental collaboration, and that open-minded discussion in turn influences conflict outcomes, i.e. task accomplishment, relationship strengthening, and future collaboration. Results further suggest that employee’s pro-social motive moderates the relationship between competitive goal interdependence and open-minded discussion, and that proself motive moderates the relationship between cooperative goal interdependence and open-minded discussion. Findings also suggest that practitioners promote effective interdepartmental collaboration by strengthening their prosocial motive when perceiving competitive goal and proself motive when perceiving cooperative goal, setting cooperative interdepartmental goal interdependence, and handling conflict through open-minded discussion. The study contributes to conflict management literature as well as the goal interdependence theory in the organizational behavior literatures.