Conflict Behavior and Conflict Escalation in Family Businesses: A Preliminary Study

Abstract

This study examines individual conflict behavior and its implications on conflict escalation in the context of family businesses. Using a Critical Incident Technique approach, 28 family and non-family chief executive officers (CEOs) from eight medium and large-scale privately-held family businesses in Indonesia are interviewed. Three themes have emerged from this research that describe the behavior of conflict parties in dealing with their conflicts, which are more likely to lead to an escalation - the inability to manage negative emotions, a lack of willingness to resolve a conflict collaboratively, and a lack of awareness of the influence of a third party. This study contributes to conflict management by providing a better understanding regarding the dynamics of conflict in family businesses. Furthermore, this research has practical implications for family businesses seeking to minimize the escalation of conflict.