In the founder's shadow: Conflict in the family firm (P. S. Davis & Harveston, 1999Davis, P. S., & Harveston, P. D. (1999). In the founder's shadow: Conflict in the family firm. Family Business Review, 12(4), 311-323. https://doi.org/10.1111/j.1741-6248.1999.00311.x
https://doi.org/10.1111/j.1741-6248.1999...
) |
Examine the effects of the founder's influence (founder's shadow) on conflicts in FBs. |
CEO of 1002 American FBs |
H1: Conflict will be greater in FBs led by the 2nd generation than by the founder. (Antecedent)
H2a: Conflict will be greater among FBs managed by the 3rd (or other) generation than by the founder or 2nd generation. (Antecedent)
H2b: The increase in conflict between FBs from 2nd to 3rd generation will be lower than the increase from 1st to 2nd generation. (Antecedent)
H3a: Conflict will be greater in the presence of the founder's shadow. (Antecedent)
H3b: The presence or absence of subsequent generations' influence will not affect conflicts. (Antecedent) |
Non-rejected hypotheses: H2a and H3a.Investigating antecedents of substantive (task) conflicts, the authors confirm the general tendency of increase as new family members (2nd, 3rd generations) take over the FB. However, more than the generation itself, it's the founder's resistance to letting control (founder's shadow) the main predictor of substantive conflicts – especially in the transition from the first to the second generation. |
The phenomenon of substantive conflict in the family firm: A cross-generational study (P. S. Davis & Harveston, 2001Davis, P. S., & Harveston, P. D. (2001). The phenomenon of substantive conflict in the family firm: A cross-generational study. Journal of Small Business Management, 39(1), 14-30. https://doi.org/10.1111/0447-2778.00003
https://doi.org/10.1111/0447-2778.00003...
) |
To examine the family influence on conflicts, as well as their diffusion through generations. |
CEO of 1002 American FBs |
H1: The higher the number/level of affiliation/hierarchical position of relatives, the lesser the conflict in FBs. (Antecedent)
H2: The higher the number of external relatives (not involved in the day-to-day work), the lesser the conflict in FBs. (Antecedent)
H3: The more social interactions among family members, the lesser the conflict in FBs. (Antecedent)
H4: The relationship between family variables and conflict will be moderated by the FB's generation. (Antecedent) |
Non-rejected hypotheses: H2 and H4.
Once more analyzing sources of substantive conflicts, the authors indicate that the effect of generation is not only direct (positive) but also moderating over other (demographic) family variables. The pacifying role of external relatives – whose presence tends to reduce conflicts in the third generation – is also highlighted.
Unlike previous study (P. S. Davis & Harveston, 1999Davis, P. S., & Harveston, P. D. (1999). In the founder's shadow: Conflict in the family firm. Family Business Review, 12(4), 311-323. https://doi.org/10.1111/j.1741-6248.1999.00311.x
https://doi.org/10.1111/j.1741-6248.1999...
), the research draws attention to the roles of other family members in the dynamics of conflict in FBs. |
Destructive and productive family relationships: A stewardship theory perspective (Eddleston & Kellermanns, 2007Eddleston, K. A., & Kellermanns, F. W. (2007). Destructive and productive family relationships: A stewardship theory perspective. Journal of Business Venturing, 22(4), 545-565. http://doi.org/10.1016/j.jbusvent.2006.06.004
http://doi.org/10.1016/j.jbusvent.2006.0...
) |
To investigate the influence of relational conflict and participative strategy process on FB's performance. |
Top Management Team (TMT) of 60 American FBs |
H1: Altruism is negatively related to relationship conflict (Antecedent)
H4: Control concentration is positively related to relationship conflict (Antecedent)
H6. Participative strategy process is negatively related to relationship conflict (Antecedent)
H7. Relationship conflict is negatively related to performance (Consequence) |
Non-rejected hypotheses: H1 and H7.
Employing stewardship theory, the study innovates by focusing on relationship conflicts in FBs. Convergent with theoretical expectation, a negative impact on performance (subjectively measured) is demonstrated. Altruism, on the other hand, emerges as a reducer of personal friction (negative relation with relationship conflict) – suggesting steward relationships as potential sources of competitive advantage for FBs. |
A family perspective on when conflict benefits family firm performance
(Kellermanns & Eddleston, 2007Kellermanns, F. W., & Eddleston, K. A. (2007). A family perspective on when conflict benefits family firm performance. Journal of Business Research, 60(10), 1048-1057. http://doi.org/10.1016/j.jbusres.2006.12.018
http://doi.org/10.1016/j.jbusres.2006.12...
) |
To examine the effects of cognitive and processual conflicts on FB's performance. |
CEO and family members of 51 American FBs |
H1: Cognitive conflict is positively related to FB performance. (Consequence)
H2: Process conflict is positively related to FB performance. (Consequence)
H3a,b: The relationship between (a) cognitive conflict and (b) process conflict and family firm performance is moderated by family-member exchange (enhancing the positive relation). (Consequence)
H4a,b: H4: The relationship between (a) cognitive conflict and (b) process conflict and family firm performance is moderated by generational ownership dispersion. Specifically, higher levels of cognitive and process conflict are beneficial in family firms with low ownership dispersion, while lower levels of cognitive and process conflict are beneficial in family firms with higher levels of generational ownership dispersion. (Consequence) |
Non-rejected hypotheses: H3b and H4a.
Contrary to expected, no positive relationships between cognitive/processual conflicts and performance (subjectively measured) were found.
In the 1st generation however, high levels of cognitive conflicts would benefit performance (what doesn't occur when the property is dispersed in several relatives) - suggesting an important role of generation as moderator.
The article's main contribution is the empirical evidence that, depending on the context, task conflicts would favor family firms - in this case, enhancing performance in the first generation. |
The negative consequences of pay dispersion in family and non-family top management teams: An exploratory analysis of new venture, high-growth firms
(Ensley et al., 2007Ensley, M. D., Pearson, A. W., & Sardeshmukh, S. R. (2007). The negative consequences of pay dispersion in family and non-family top management teams: An exploratory analysis of new venture, high-growth firms. Journal of Business Research, 60(10), 1039-1047. http://doi.org/10.1016/j.jbusres.2006.12.012
http://doi.org/10.1016/j.jbusres.2006.12...
) |
Explore the impact of wage dispersion on conflict, cohesion, and power on TMTs of family and non-family firms. |
TMT of 200 venture firms (112 FBs) |
H2. Wage dispersion in TMTs raises affective (relationship) conflict. This relationship will be stronger in FBs. (Antecedent)
H3. Wage dispersion in TMT reduces cognitive (substantive) conflict. This relationship will be stronger in FBs. (Antecedent) |
Non-rejected hypotheses: H2 and H3.
Unlike previous articles, the study innovates by comparing family and non-family businesses. As predicted, it's shown that wage dispersion raises affective conflict and reduces the cognitive facet especially in FBs - according to the authors, due to the clash between economic logic (meritocratic remuneration) and the altruistic pattern of family social relations. |
Conflict, participative decision-making, and generational ownership dispersion: A multilevel analysis (Eddleston et al., 2008Eddleston, K. A., Otondo, R. F., & Kellermanns, F. W. (2008). Conflict, participative decision‐making, and generational ownership dispersion: A multilevel analysis. Journal of Small Business Management, 46(3), 456-484. https://doi.org/10.1111/j.1540-627x.2008.00252.x
https://doi.org/10.1111/j.1540-627x.2008...
) |
To evaluate how the dispersion of generational property moderates relations between participative decision-making and cognitive/ relationship conflicts. |
CEO and other family members of 37 American FBs |
H1: Participative decision-making is positively related to cognitive conflict. (Antecedent)
H2: Participative decision-making is negatively related to relationship conflict.
H3a: Generational ownership dispersion (firm level) will exhibit a direct cross-level relationship with cognitive conflict (individual level). (Antecedent)
H3b: The relationship between participative decision-making and cognitive conflict will be moderated by generational ownership dispersion (firm level). (Antecedent)
H4a: Generational ownership dispersion (firm level) will exhibit a direct cross-level relationship with relationship conflict (individual level). (Antecedent)
H4b: The relationship between participative decision-making and relationship conflict (individual level) will be moderated by generational ownership dispersion (firm level). (Antecedent) |
Non-rejected hypotheses: H2, H3b and H4b.
Adopting a contingency approach, it can be observed that, in the 1st or 2nd generation, greater participation in the decision-making process reduces cognitive and relationship conflicts in FBs. However, the effect reverses with property is dispersed over several generations - increasing both dimensions.
The article offers an interesting practical contribution: the ideal level of participative decision-making (managerial variable) is contingent on the FB generation, due to the different effects on the task and relational facets of conflicts. |
Harmony, justice, confusion, and conflict in family firms: Implications for ethical climate and the "Fredo effect" (Kidwell et al., 2012Kidwell, R. E., Kellermanns, F. W., & Eddleston, K. A. (2012). Harmony, justice, confusion, and conflict in family firms: Implications for ethical climate and the “fredo effect”. Journal of Business Ethics, 106(4), 503-517. http://doi.org/10.1007/s10551-011-1014-7
http://doi.org/10.1007/s10551-011-1014-7...
) |
Investigate factors influencing the probability of family member impediment, which can lead to unethical behavior. |
Family members of 121 American FBs |
H4a: Relationship conflict mediated the relationship between perceived norms of family harmony and family impediment. (Mediation)
H4b: Relationship conflict mediated the relationship between perceptions of distributive fairness and family impediment. (Mediation)
H4c: Relationship conflict mediated the relationship between role ambiguity and family impediment. (Mediation) |
Non-rejected hypotheses: H4a, H4b and H4c.
Focus on relationship conflict and its ability to destroy value – in this case, emerging as the main influencer of low familial involvement in FBs (known as the Fredo effect). In turn, perceived norms of family harmony and perceptions of distributive fairness would reduce relationship conflicts.
Authors suggest that by minimizing relationship conflicts, perceptions of an ethical, cooperative, and transparent organizational climate would also reduce the problem of low involvement of family members in family firms (dependent variable) – strengthening the stewardship approach. |
Decreasing the effects of relationship conflict on family businesses: The moderating role of family climate (Nosé et al., 2017Nosé, L., Korunka, C., Frank, H., & Danes, S. M. (2017). Decreasing the effects of relationship conflict on family businesses: The moderating role of family climate. Journal of Family Issues, 38(1), 25-51. http://doi.org/10.1177/0192513X15573869
http://doi.org/10.1177/0192513X15573869...
) |
To examine the effect of positive family climate on the association between relationship conflict and performance metrics – organizational satisfaction and performance. |
Owners and top managers of 392 Australian FBs |
H1: Relationship conflict is negatively related to a) satisfaction and b) performance (organizational level). (Consequence)
H3a (a,b,c): The relationship between relationship conflict and satisfaction is moderated by (a) cohesion, (b) adaptability and (c) open communication, reducing its negative effect. (Consequence)
H3b (a,b,c): The relationship between relationship conflict and performance is moderated by (a) cohesion, (b) adaptability and (c) open communication, reducing its negative effect. (Consequence) |
Non-rejected hypotheses: H1a, H1b, H3a (a), H3a (b) and H3b (c).
Again exploring relationship conflicts, results indicate (according to literature) negative relation with organizational performance/satisfaction.
The novelty is found in moderation relationships: it's shown that the detrimental effect is lesser when coupled with cohesion and family adaptability.
Although there's no evidence of positive effects of relationship conflicts, authors suggest that a positive family climate (cohesion/adaptive capacity) can minimize negative effects – corroborating the stewardship approach as a potential competitive advantage of FBs. |
Relationship conflict, family name congruence, and socioemotional wealth in family firms (Rousseau et al., 2018Rousseau, M. B., Kellermanns, F., Zellweger, T., & Beck, T. E. (2018). Relationship conflict, family name congruence, and socioemotional wealth in family firms. Family Business Review, 31(4), 397-416. http://doi.org/10.1177/0894486518790425
http://doi.org/10.1177/0894486518790425...
) |
To investigate how owners consider the socio-emotional cost of relationship conflicts in valuations of the value of the family firm. |
149 CEOs /owners of German FBs |
H1: There's a non-linear relation between relationship conflict and the degree of subjectivity in the evaluation of the value of FBs by the owners. Specifically, low and high levels of relationship conflict correspond to more subjective assessments; moderate, to less subjective assessments. (Consequence)
H3: Relationship conflict and congruence of name (family name = business name) interact, reversing the H1 relation. When there's congruence, an inverted U-relationship is expected between relationship conflict and subjectivity in assessing the value of FB. (Consequence) |
Non-rejected hypotheses: H1 and H3.
In this study, it's adopted an unprecedented DV: the subjectivity in the monetary value that owners assign to FBs. Results can't refuse proposed hypotheses, demonstrating complex nonlinear relations with relationship conflict (understood as a social-emotional cost).
In particular, two points are highlighted:
(a) there seems to be a tendency in the literature for investigating relationship conflict;
(b) whose organizational impacts seem wider than previously foreseen in conflict theory. |
