Effects of self‐efficacy on objective and subjective outcomes in transactions and disputes

Purpose This paper aims to examine the relationship between self‐efficacy and the outcomes that individuals achieve when they manage conflict at work. The authors propose that self‐efficacy is related to performance following a positive linear or curvilinear model depending on the outcomes assessed (objective versus subjective outcomes) and the conflict setting considered (transaction versus dispute). Design/methodology/approach Two studies were conducted. Study 1 was a face‐to‐face transaction in which self‐efficacy was measured using a survey. In study 2, participants were involved in a dispute and their self‐efficacy was manipulated using a false feedback technique. Findings Results suggest that high self‐efficacy participants obtain better objective (economic/substantive) outcomes. However, there is a curvilinear relationship, in a U‐inverted shape, between self‐efficacy and subjective (relational) outcomes, indicating that an increase in self‐efficacy improves subjective outcomes, but there are certain levels at which self‐efficacy may be dysfunctional. Originality/value Recent controversial findings in research into the relationship between self‐efficacy and performance are addressed in these studies. The present paper is one of the first to explore the role of self‐efficacy in a dispute and to consider the effects of self‐efficacy on subjective outcomes. Practical implications are discussed in light of the results.