Conflict Management Strategies Used by Successful Family Businesses

Abstract

This paper analyzes a survey of 59 family businesses. Findings indicate that in comparison to nonfamily businesses, family businesses have a more complex set of issues to consider when managing conflict. The integrative conflict strategies of collaboration, accommodation, and compromise produce relatively better outcomes for both family and business. Competitive and avoidance strategies can result in relatively negative outcomes for both business and family. High levels of collaboration contribute to positive outcomes for both family and business, and high levels of compromise and accommodation contribute to positive family outcomes. Based on a comparison of means, this paper identifies conflict management profiles for achieving positive outcomes for both business and family.

Theory of planned behaviour and the family business

“…When a social structure, such as the family, has developed common beliefs with regard to these three forces, they can help to explain family behaviour, such as starting or selling a company. However, different individual preferences can result in disagreement on what is desirable behaviour, which in turn can result in conflicts among family members (Sorenson, 1999;McKee, Madden, Kellermanns & Eddleston, 2014). Although these conflicts can have negative effects and delay decisions, they also force the family to rethink decisions that can change intentions in the theory of planned behaviour.…”

Analyse multivariable de la performance des PME familiales. Une lecture par la théorie positive de l’agence

“…Nos résultats sur nos entreprises européennes confirment plutôt que le conflit introduit une tension organisationnelle nécessaire au développement de la création et de l'innovation (Cosier et Harvey, 1998). Dans son étude sur la résolution des conflits au sein des entreprises familiales, Sorenson (1999) précise que c'est par le mode de collaboration, plutôt que par le compromis par exemple, que sont obtenues les meilleures performances. Si nos travaux ne permettent pas une analyse si approfondie des conflits, ils montrent en tout cas sur la base d'un échantillon très large que l'accroissement d'une source potentielle de conflits entre la famille et les membres extérieurs dans la gestion de l'entreprise se traduit positivement sur un ratio simple de performance financière.…”

Impact of Factors of Family Business on the Performance: A PLS-SEM Study

“…Family businesses are places where parties, while working together, can experience disagreement about task priorities and about how to accomplish them and can experience interpersonal incompatibilities on values and attitudes. It has been shown that the family adds complexity to business conflicts and conflict resolution, as family members can be concerned not only about business performance but also about their involvement in and satisfaction with the business [78]. Therefore the following hypothesis is proposed:…”