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Relationship Conflicts in Family Firms: An Empirical Analysis

In: Entrepreneurship and Family Business Vitality

Author

Listed:
  • Ismael Barros-Contreras

    (Universidad Austral de Chile)

  • Juan Hernangómez-Barahona

    (University of Valladolid)

  • Natalia Martín-Cruz

    (University of Valladolid)

Abstract

Relationship conflicts between family members can have disastrous consequences on the performance of the family firm (FF) and even endanger its continuity. This study examines the relationship between family influence, relationship conflicts, and the organizational effectiveness of FF. Using a sample of 102 Spanish FFs, the authors analyzed the data using a partial least squares structural equation model. The results show that the involvement of family members in the ownership and on the boards of governance and management enhance the incorporation of the family values and culture into the firm and thus reduce relationship conflicts. More importantly, we find a negative relation between relationship conflicts and the effectiveness of FF.

Suggested Citation

  • Ismael Barros-Contreras & Juan Hernangómez-Barahona & Natalia Martín-Cruz, 2020. "Relationship Conflicts in Family Firms: An Empirical Analysis," Studies on Entrepreneurship, Structural Change and Industrial Dynamics, in: José Manuel Saiz-Álvarez & João Leitão & Jesús Manuel Palma-Ruiz (ed.), Entrepreneurship and Family Business Vitality, pages 151-174, Springer.
    • Handle: RePEc:spr:seschp:978-3-030-15526-1_9
    DOI: 10.1007/978-3-030-15526-1_9
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