Conflict that is developed between organizations is named as Inter-organizational conflict. Inter-organizational conflict usually when there is high level of competition between two firms. Mergers, takeovers and acquisitions may also result in Inter-organizational conflict
The opposite attitudes and values of two different organizations can lead to high level of inter-organizational conflict. Besides, it develops when situations in which managers in one organization feel that other organization is not behaving ethically and is frightening the well being of stakeholder groups. The pricing strategies formulated by enterprises may also cause inter organizational conflicts. A majority of inter organizational conflicts result in the productivity of an organization rather than deterioration in performance. Some level of inter-organizational conflict is essential for organizations to compete in the market.