Conflict Management in Digital Business

The impact of rapidly developing technologies on digitalization of production and planning has affected all sectors in a short period. This impact has led to both positive and negative outcomes. While it is helping the decision-makers to make better and more productive choices, it also can create a cluster of information and data that can put an undue burden on processes. Today, we call this Industry 4.0, which is defined as the use of digital technologies, based on data processing, the end-to-end connection of value chains, and ensuring data fluidity. Industry 4.0 consists of technologies such as cyber-physical systems, internet of things, cloud computing, big data and analysis, autonomous vehicles, and augmented reality. With the digitalization of the entire production and planning processes, data-based applications are made; thus it is important to protect data in this context, pointing to the critical importance of cybersecurity. Companies are constantly working on taking the necessary cybersecurity measures to prevent exposure to any cyberattacks. One of the biggest steps toward the development of production and planning is undoubtedly the integration and adaptation of blockchain technology. The use of blockchain technologies has been a major breakthrough for the sector in order to effectively meet customer needs, ensure information security, reduce costs, and achieve rapid growth. With digital transformation, production and planning must comply with the principle of transparency. In this context, integrating blockchain technologies into the production and planning ecology for data security will provide companies with a serious competitive advantage.

The unpredictable distribution of globalization has directed the world economy and revealed the need to establish cooperation in all business processes. This global structure also highlights the necessity of designing an agile supply chain that is capable of continuous information sharing during end-to-end transportation for the purpose of creating sustainable connections. In this process, various strategies enhanced with contemporary information and communication technologies have been developed to create a fast and accurate data-sharing network between logistics service providers and supply chain parties. However, unlike the short-term interruptions experienced in the past, COVID-19 has caused unprecedented problems in the dynamics of most economies. In eliminating these problems, it has been seen that information communication technologies, which provide the advantage of digital visibility in normal operations, need to be redesigned with the technology of the autonomous age. To meet this requirement, Industry 4.0, a revolutionary conceptual trend that started roughly a decade ago but that has become considerably more widespread during COVID-19, has been integrated into business models as a key concept that governs intelligent transformation in the chain. This process, which is today considered a compulsory intelligent transformation rather than an alternative method, has however led to some conflicts, especially in adaptation, expertise, and security subjects. This chapter of the book evaluates, within the scope of cybersecurity and workforce in logistics services, the conflicts created by the digital solution methods that have been integrated into business models to reduce the negative effects of COVID-19.

The rapid digital transformation is driving businesses to reexamine their marketing plans and practices. Marketers face new conflicts while they are implementing digital marketing strategies. The main objective of this chapter is to deeply understand these conflicts and to provide appropriate solutions. This chapter addresses six digital conflicts that challenge marketers most: (1) online versus offline channel conflicts, (2) conflicts stemming from digitalization gap, (3) conflicts in influencer marketing context, (4) conflicts in artificial intelligence (AI) context, (5) environmental conflicts and digital marketing, and (6) ethical conflicts and digital marketing. Finally, we discuss conflict management strategies for the most challenging digital marketing conflicts.

Conflict is inevitable in any environment where people interact. Conflict, which is a natural consequence of social interaction, is also a fact of organizational life. The acceptance of the reality of conflict has replaced the efforts of organizations to eliminate conflict with living with it over time and making the conflict work in favor of the organization. Conflicts that arise in the service sector are usually caused by organizational culture such as organizational structure, organizational justice, and organizational tolerance. Cultural differences of those working in the organization also cause conflict. In addition, these conflicts commonly occur in the form of work–family conflict or family–work conflict of employees in the organization. The pandemic process has brought the conflict in the service sector to a different dimension. This process is seen as an opportunity that facilitates the rapid adaptation of enterprises in the service sector to digital transformation and technological developments. The increasing trends of digitalization in the service sector are seen as a solution method in conflict-affected communities. With this chapter, it was concluded that digitalization, which gained momentum with the work-from-home system that entered business life due to the COVID-19 pandemic will be an important part of the business culture after the pandemic.

The increasing global competition, worldwide economic and political uncertainities, and continuously changing dynamics in business environment require companies act differently and differentiate via smart strategies in order to have sustainable operations, growth, and profitability. Therefore, firms should be more agile, creative, and adaptive in planning and strategizing their mid- to long-term business objectives.

In that regard, for the last decade globally many firms across all industries seek opportunities to utilize benefits of digitalization. Lately, COVID-19 has also accelerated companies' efforts and investments in digital platforms.

Today, supply chain and procurement functions are expected to have a strategic role for organizations contributing to management decisions. The digital transformation in procurement is promising to enhance and lean the total workflow of operations. Data analytics, artificial intelligence, robotics, and other emerging digital technologies are all highly powerful tools supporting strategic supply and supplier management, providing predictability for demand planning as well as value-based negotiation power to buyers.

On the other hand, there are still challenges and conflicts throughout this transformation process. Level of technological maturity, infrastructure and investment decisions, expertise and competency of procurement professionals, cultural adaptation, and compliance of related stakeholders are some of the key barriers that are addressed with a unique model in this chapter.

Digital era offers a lot of advantages to firms to improve their procurement facilities and practices while it may still take time both for the technologies to fully evolve and also for companies to adapt and embrace digitalization on their benefit.

Today, businesses, organizations and governments attach great importance to digital transformation to meet the needs of their customers, business partners, and employees to adapt to the developing technology in recent years. Digital transformation, which is a challenging and mandatory process, has been and continues to be passed by institutions today. However, the successful management of this transformation without conflict can be realized by accurately detecting new communication technologies and examining, understanding, and implementing the transformation process in detail. This process will be painful, where radical changes will take place in the structure, processes, functions, and business models of the organization. Different challenges may be encountered in each of the startup, execution, and governance subprocesses examined in the digital transformation process. Many conflicts such as time and budget shortages, inadequate digital skills and lack of vision for digital customer processes, cybersecurity threats, human resource shortages, difficulty in managing technology, failure to achieve cloud structure integration, vision, and culture differences are the reasons why this process cannot be managed fluently and accurately. For businesses that focus on this goal, regardless of scale, digital transformation has become a necessity, not an alternative to choose. In this study, the digital transformation process and maturity model were discussed, and technological and digital conflicts were emphasized. It seeks to shed light on the work they will do by making recommendations for institutions to manage this process in the best way.

With the pandemic and digital developments, digital transformation has begun in Human Resources Management (HRM). Applications such as robotic applications, information technology, IIoT, Industry 4.0 have led to a decrease in the need for human resources (HR) and an increase in the need for skilled workers. Along with this need, new-collar, digital-collar, cyber-collar, and metal-collar employee types have been added to the distinction between blue-collar and white-collar. To adapt to Industry 4.0 and to survive the pandemic process, businesses have also met the digitalization process very quickly and almost unpreparedly. In this context, the HRM of the businesses has started to experience digital transformation. With the digitalization of HR processes, digital conflicts have also emerged. Conflict management problems arising from digital transformation and the pandemic process, health problems, and cyber-attacks due to remote working have become one of the most important problems of the digital age. In this chapter, the issue of digital conflicts in HRM is discussed. In this context, first of all, the concept of digital conflict is included. Then, Industry 4.0, information technology and HR, the impact of information systems on digitalization and HR, digital transformation in HRM, opportunities, and threats arising from digitalization, and HR conflict management problems in the COVID-19 pandemic, collar change of employees during the pandemic, possible problems that may arise after the pandemic, future predictions, and strategic principles are mentioned.

The human and technology have integrated, and distinctive characteristics of different societies have intertwined with technology. Thus, technology constitutes the reflection of the society, where it exists, in economic, social, and political domains. The desires, expectations, and needs of people have affected the change of technology in time. This effect contains different domains in itself. Life has changed since the 1980s under the leadership of means of informatics, and following the 1990s, internet technology have opened the doors of an informatics era whose effect is being highly sensed today. In addition to its importance, it creates significant changes and effects on individuals, society, culture, and other domains. When significant changes in technology and digitalization have combined with the globalization of information and communication, the resulting problems have begun to spread faster.

In this study, which was performed for examining the digital conflicts arising in business infrastructure, literature was reviewed thoroughly. In the first part of the study, the conceptual framework of business infrastructure was examined and tried to be clarified. Moreover, it was intended to convey the commencement of the technologies used, and their following processes. Then, it was urged upon clarifications regarding business processes and digitalization of business processes, and by referring to the implementations of technologies – used in business processes – in the domain of digitalization, structural examinations were conveyed from the literature. Finally, the issues of digital conflicts and cyber security occurring in business infrastructure, which are being expressed as more prominent factors, were clarified.

Businesses have a vast interaction and communication network within economic, sectoral, legal, and cyber systems. This business network shapes their relationships with other businesses which are their stakeholders. Advances and innovations in the digital world are utilized as a tool of conflict for excessive and unfair competition, market penetration, internationalization, sustainability, or having a strategic edge over rivals. Concepts popularized by the pandemic such as virtualization, virtual markets, social media, virtual advertising, and other cyber/digital factors have accelerated and intensified competition between businesses. Within this process, businesses experience intense conflicts stemming from such competition. This would impact businesses' strategies aimed at conflict in the postpandemic period. After the pandemic, businesses can implement strategies of cooperation, show of force, compromise, avoidance, and problem-solving in conflicts. Businesses can also adopt increasing performance and productivity, resolving problems as quickly as possible, developing mutual relationships with other businesses and establishing an environment of trust as principles in a conflict.

Digitalization has a profound impact on economies as a whole, and on sectors, businesses, and daily life. Digitalization is possible through development of a variety of digital technologies which led to creation of digital products and services in almost every sector. Almost all sectors benefit from digital technologies; however, there are also challenges about digitalization which encounters conflicts. These conflicts are either macro-level or related to digitalization of business processes. With efficient functioning of governmental policies, macro-level conflicts could be diminished or prevented. Conflicts arising from business process could be avoided by improvement of business relations.

The conditions that are constantly changing and transforming by digital technologies in today's world have forced businesses to think strategically and to comply with the rules and processes of strategic management. Technologies, such as the internet of things, cloud computing, artificial intelligence, and big data, especially in the Industry 4.0 ecosystem, cause some conflicts or constructive and destructive effects on the management approaches and management strategies of businesses. Businesses need to understand these technologies and their effects to maintain their existence and manage their resources and capabilities effectively and strategically. In this chapter, it is aimed to examine the conflicts with destructive and constructive effects of digital technologies on the strategic management of enterprises. For this purpose, the literature was searched qualitatively, and a conceptual study was carried out. At the beginning of the chapter, strategic management literature was researched, and strategic management approaches and views were examined. In the next part, digital technologies in the Industry 4.0 ecosystem are explained. In the last part, digital technologies and their impacts in terms of strategic management approaches (position approach, resource-based approach, and complementing views of resources-based approach) have been examined.

Digitalization has become more central in organizations than ever before. Traditionally, organizations were places where employees spent most of their time. With digital organizations, working life has become flexible in terms of time and space, and the way of doing work has changed radically. While it has become difficult for employees to keep up with technological change and transformation, various digital conflicts related to technology have emerged within the organizations. This chapter deals with digital conflicts that occur in digital organizations. Digital conflicts could affect both the efficiency of organizations and the attitudes and perceptions of employees toward the organization. However, studies on the understanding of digital conflict management in digital organizations are quite limited. In this chapter, therefore, the causes and organizational consequences of digital conflicts in terms of organizational behavior are reviewed. The study indicates that digitalization, which is expected to increase workplace effectiveness and efficiency, could lead to destructive conflicts if not managed well, reducing socialization and job satisfaction of employees. The study also has shown that a well-managed digitalization process could increase efficiency and productivity for digital organizations and could increase job satisfaction by providing flexibility to employees. The chapter ends with suggestions for digital organizations to manage digital conflict management successfully.

Recently, a new concept “digital sustainability” has emerged concerning the sustainability of businesses. Digital sustainability in the business world is related to the existence of businesses that are compatible with rapidly developing technologies. Digital sustainability depends on the ability to businesses to adapt digitally to business environment and successfully transform their internal processes by digitizing their managerial processes. Especially during the COVID-19 pandemic, the deficiencies, glitches, gaps, and weaknesses in various internal and external organizational systems and digital mechanisms of enterprises have become more visible. This section reveals how important digital technologies are for adding social and environmental value to sustainable businesses. Besides, this section discusses how digital business models affect sustainability. For this purpose, in this section, sustainable business models and the sustainable business model components of digital technologies are discussed from a corporate perspective.

In this section, respectively, digitalization and digitalization in businesses under the light of sustainability, and digital sustainability in businesses are discussed. Then, basic concepts of digital sustainability in businesses, the relationship between digital sustainability and e-commerce, the positive impacts of digital sustainability on businesses, digital sustainability by countries and digital sustainability in various sectors are discussed accordingly. Many of the businesses with sustainable business models and strategies use digital technologies to design innovative business models and to provide a relatively unique competitive advantage among their rivals. Thus, by optimizing at every digital stage of business, companies can achieve digital sustainability. Companies could add unique value that cannot be imitated from any other businesses by only maintaining digital sustainability.

The COVID-19 pandemic, which globally affected all the countries of the world both economically and socially, has become one of the biggest crises after the 1929 world economic depression. During this period, not only people's health but also the economic health of countries was affected. In this process, people have created intense connection traffic on the internet to meet their needs, and this has accelerated the digitalization processes of businesses. Thus, the concept of digital transformation began to be widely used. Today, digital transformation processes have become an external environmental variable that covers all sectors, not businesses in a single sector. This situation has revealed the necessity of creating new business/management strategies that increase customer value for business managers. Digital transformation has shown itself in all business functions. In other words, the demands and priorities of each function and its managers have also changed. Therefore, business and department managers are required that they perceive digital transformation processes correctly and integrate their businesses/departments into this process with the right business/management strategies, without conflicting with the digital transformation processes. In this study, various ideas and evaluations put forward about sustainable business/management strategies that can be applied against the current and future importance of the digitalization/digital transformation process and its possible effects on businesses are included.

Cyber management of organizations includes eliminating security gaps, ensuring information confidentiality, and protecting customers' data. In addition, production and planning, protecting cyber and digital infrastructure are included in the chapter. The chapter deals with these issues in the context of strategy and management. In addition, the conflicts arising from competitors to access the tacit knowledge (confidential information, commercial secrets, commercial relations, customers, and tenders) of the businesses are discussed in the chapter. Cyber conflicts have now turned into a business-to-business war. Businesses have become targets in cyberwars. This chapter, therefore, examines these issues in depth.

A cyberattack is an attempt by cybercriminals as individuals or organizations with unauthorized access using one or more computers and computer systems to steal, expose, change, disable or eliminate information, or to breach computer information systems, computer networks, and computer infrastructures. Cyberattackers gain a benefit from victims, which may be criminal such as stealing data or money, or political or personal such as revenge. In cyberattacks, various targets are possible. Some potential targets for businesses include business and customer financial data, customer lists, trade secrets, and login credentials.

Cyberattackers use a variety of methods to gain access to data, including malware such as viruses, worms, and spyware and phishing methods, man-in-the-middle attacks, denial-of-service attacks, SQL injection, zero-day exploit, and DNS tunneling.

Related to cyberattack, the term cyberwarfare is gaining popularity nowadays. Cyberwarfare is the use of cyberattacks by a state or an organization to cause harm as in warfare against another state's or organization's computer information systems, networks, and infrastructures.

Military, civil, and ideological motivations, or hacktivism can be used to launch a cyberwarfare. For these reasons, cyberwarfare may be used to conduct espionage, sabotage, propaganda, and economic disruption.

Considering highly digitalized business processes such as e-mails, digital banking, online conference, and digital manufacturing methods, damage of cyberwarfare to businesses and countries are unavoidable. As a result, developing strategies for defending against cyberattacks and cyberwarfare is critical for businesses. The concepts of cyberattack and cyberwarfare, as well as business strategies to be protected against them will be discussed in this chapter.