Keeping dispute resolution internal: Exploring the role of the industrial relations climate, organizational embeddedness and organizational turbulence

Abstract

Drawing on job embeddedness theory, this study investigates how and when the industrial relations climate influences employees’ preference for particular labour dispute resolution procedures. Analyses of multisource and multilevel data from China show that organizational embeddedness mediates the relationship between the industrial relations climate and preference for internal dispute resolution (IDR) and this indirect effect is stronger in organizations with a high level of turbulence. These findings provide novel theoretical explanation of the linkage between the industrial relations climate and employees’ preference for IDR and highlight the interactions between the industrial relations climate and organizational turbulence. Practical implications are also offered to facilitate employees’ preferences for IDR by improving the quality of the industrial relations climate.