From antiquity to the factory floor

Purpose The purpose of this article is to propose a conceptual framework for elucidating cross‐cultural paradoxes in dispute resolution and present a case study of a hybrid process that combines aspects of interest‐based mediation and indigenous dispute resolution in order to inform the design of conflict management systems in multinational enterprises (MNEs).Design/methodology/approach– A case study approach utilizing participant observation and informant feedback is used to present an organizational intervention in the Sri Lankan subsidiary of a European MNE. Discussion of the case is framed by theories of culture and conflict and a literature review of indigenous dispute resolution in Sri Lanka.Findings– The case illustrates how one MNE developed a culturally appropriate conflict management system in its subsidiary by crafting an innovative, informal channel for managing conflict and systematically embedding it into the organization alongside its formal conflict management process.Research limitations/implications– The case study approach limits the generalizability of the results. Future research should include a larger sample of countries, organizations, and dispute resolution practices, and incorporate feedback from employees to better assess the efficacy of the intervention.Practical implications– MNEs have an untapped opportunity to develop innovative approaches for managing conflict in their subsidiaries by melding interest‐based and indigenous mediation processes to develop culturally appropriate conflict management systems.Originality/value– This paper contributes to the literatures on cross‐cultural conflict management and conflict management systems design by presenting an innovative approach to the application of hybrid dispute resolution mechanisms in MNEs. This study provides valuable insights for international managers, conflict systems design practitioners, and cross‐cultural conflict scholars.