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Conflict, Participative Decision‐Making, and Generational Ownership Dispersion: A Multilevel Analysis

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  • Kimberly A. Eddleston
  • Robert F. Otondo
  • Franz Willi Kellermanns

Abstract

This study examines how participative decision‐making and generational ownership dispersion affect conflict in a sample of privately held U.S. family firms. Our study utilizes a hierarchical linear model approach to investigate “cross‐level” effects between variables from different levels of analysis. Participative decision‐making among family members was found to be associated with cognitive and relationship conflict. Furthermore, the relationship between participative decision‐making and conflict as individual‐level variables was moderated by generational ownership dispersion, a firm‐level variable. When ownership was dispersed through multiple generations, participative decision‐making was found to be positively related to cognitive and relationship conflict; however, in one‐ and two‐generation ownership firms participative decision‐making was found to be negatively related to cognitive and relationship conflict.

Suggested Citation

  • Kimberly A. Eddleston & Robert F. Otondo & Franz Willi Kellermanns, 2008. "Conflict, Participative Decision‐Making, and Generational Ownership Dispersion: A Multilevel Analysis," Journal of Small Business Management, Taylor & Francis Journals, vol. 46(3), pages 456-484, July.
  • Handle: RePEc:taf:ujbmxx:v:46:y:2008:i:3:p:456-484
    DOI: 10.1111/j.1540-627X.2008.00252.x
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    Cited by:

    1. Ismael Barros-Contreras & Héctor Pérez-Fernández & Natalia Martín-Cruz & Juan Hernangómez B., 2023. "Can we make family social capital flourish? The moderating role of generational involvement," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 655-673, September.
    2. Angela Dettori & Michela Floris, 2023. "Improving continuity by simplifying the structure of family firms: a replication study," Management Review Quarterly, Springer, vol. 73(2), pages 635-660, June.
    3. Sushma Kumari & Vikrant Shirodkar & Steven McGuire, 2023. "Pre-Liberalization Foundations and the FDI-Based Internationalization of SMEs from Emerging Markets," Management International Review, Springer, vol. 63(4), pages 641-671, August.
    4. Issah, Wunnam Basit & Anwar, Muhammad & Clauss, Thomas & Kraus, Sascha, 2023. "Managerial capabilities and strategic renewal in family firms in crisis situations: The moderating role of the founding generation," Journal of Business Research, Elsevier, vol. 156(C).

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