Conflict in Family Firms: Contributors and Reduction Mechanisms

Abstract

Family businesses are characterized by conflict. The most harmful type of conflict, relationship conflict, can significantly impair the operation of the family business, affecting not only daily operations but also its long-term effectiveness. This qualitative study focuses on the factors within family firms that contribute to conflict and those that help mitigate it. Drawing on the literature on family business conflict, succession, and commitment, we interviewed 50 family business owners and managers and analyzed the effects of conflict and the efforts to mitigate it. We extend the family business literature and advise practitioners by developing a model and six propositions.