Family businesses: fertile environments for conflict

Steffen Großmann · Arist von Schlippe

82 citations0/0 files storedJournal of Family Business Management

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Family Business Performance and Succession Family Dynamics and Relationships Conflict Management and Negotiation

Abstract

Purpose – The purpose of this paper is to present an innovative study with a twofold focus: on highly escalated family business (FB) conflicts and on the interactions between conflicts and the failure of the company as FB. The authors devoted this paper to the question of how family-related conflicts are connected with the demise of FB. Conflicts constitute an essential part of every FB and may definitely have the power to superimpose the performance of the FB as well as the family life in a destructive way. Especially, highly escalated so called relationship conflicts can be seen as one reason for the failure of FB. Design/methodology/approach – The research aims at analysing the meaning of conflict in FB with respect to the failure of the FB. Therefore, the authors use an explorative case study approach. The study is based on a total of five case studies. As the authors use theory of social systems as a theoretical background, the authors focused in the analysis in all cases on patterns rather than on individual characteristics. Findings – As an essential part of the study the authors formulated eight hypotheses describing specific patterns of the conflict process as a communicative system. These hypotheses convey a comprehensible impression of the effects conflicts may have within FB and present a number of new facets of conflict dynamics and patterns of escalation in FB. Originality/value – In particular, the authors provide new insights into the dynamics of highly destructive forms of conflicts in FB and the relationship between family-related conflicts and the failure of FB. The authors also pave the way for future research that aim to develop a more holistic understanding about when and why the outcomes from family and business systems will conflict or be harmonious.

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References

1984Case Study Research: Design and Methods 2004Case Study Research 1995The Theory of the Growth of the Firm 1973Steps to an Ecology of Mind 1997Generation to generation: life cycles of the family business 1967Organizational Conflict: Concepts and Models 2006Destructive and productive family relationships: A stewardship theory perspective 2003Lost in time: intergenerational succession, change, and failure in family business

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