When Conflict Meets Connection: How Social Capital Shapes Innovation

What is it about?

This study explores how social capital—the strength of relationships and trust within organizations—affects the link between conflict and innovation. It distinguishes between task conflict, which arises from differences in ideas or approaches, and relationship conflict, which stems from personal tension or animosity. The research argues that social capital can either magnify or suppress the influence of these conflicts on innovation, depending on whether it takes the form of social interaction or trust. Using data from Canadian-based firms, the results show that when social interaction among employees is high, task conflict more effectively promotes innovation because team members are better able to debate ideas constructively. However, social interaction also strengthens the harmful effect of relationship conflict, as close contact can intensify interpersonal friction. Meanwhile, trust among employees weakens the beneficial influence of task conflict on innovation—dampening the creative value of disagreement—while having no discernible impact on the effects of relationship conflict. For practitioners, the findings underscore the need to manage conflict and social capital jointly. Leaders should foster open communication and interaction to ensure that disagreements over ideas lead to productive innovation, while maintaining enough professional distance to prevent personal clashes. At the same time, building a climate of trust can help maintain organizational harmony, even if it slightly reduces the innovative benefits that arise from constructive debate.

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Photo by Markus Winkler on Unsplash

Photo by Markus Winkler on Unsplash

Why is it important?

This study is unique in demonstrating how different dimensions of social capital—interaction and trust—exert opposing influences on the conflict–innovation link. By showing that social capital can both enhance and suppress the effects of conflict, it advances a contingency-based understanding of how internal relationships shape organizational creativity. The findings expand prior theory by revealing that not all social connections are equally beneficial: the same relational structures that foster innovation under some conditions can hinder it under others. Its timeliness lies in offering guidance to organizations in Canada and beyond that are navigating increasingly collaborative and networked work environments. As teams rely more heavily on interaction and trust to innovate, this research highlights the delicate balance leaders must strike—encouraging constructive friction while preventing personal tensions—to harness the full creative potential of social capital.