The Phenomenon of Substantive Conflict in the Family Firm: A Cross‐Generational Study

Peter S. Davis and Paula D. Harveston

Journal of Small Business Management, 2001, vol. 39, issue 1, 14-30

Abstract: This study investigates the influence that family members exert on the extent and frequency of substantive conflict within family firms across generations as a result of their familial relationship (distance) with the owner/manager of the firm and the positions these family members occupy in the family work group and social (non‐work) group. Following Beckhard and Dyer (1983), the construct of substantive conflict was vested in four key issues pertinent to family firms: (1) ownership continuity or change; (2) executive leadership continuity or change; (3) power and asset distribution; and (4) management's vision for the role of the firm in society. The results establish a relationship between conflict in a family business and the composition of the family's work group, non‐work (social) group, and the extensiveness of the family's social interactions. The relationships between conflict and family influence were found to be moderated by the generations (first, second, third, or later) among involved family businesses.

Date: 2001
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DOI: 10.1111/0447-2778.00003

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