Abstract
Abstract Conflicts are social phenomena liable to occur in any organizational type; however, they're more intense (and less understood) in the family business dynamics, due to the unique psychodynamic effects of the interaction between family, management, and property. At the same time, conflicts can also be particularly salient in the ambiguous and complex context of boards (the black box of corporate governance), by the intimate connection with strategic decisions. Intersecting both areas, this study proposes a theoretical framework connecting antecedents and consequences of intragroup conflicts in the strategic decision-making process (especially in the decision quality), in the particular and favorable context of family firms board of directors. Based on deductive logic, relationships are built in view of the director' strategic counseling function, potentially raising the quality of strategic decisions by reducing the relational dimension and stimulating the organizational task-oriented discordance. Variables and constructs, suited to the specificities of the context under investigation, are proposed in direct and moderation relations under a contingency perspective.
Highlights
One of the main arguments employed to justify research focus on family business (FB) is the relevance of this organizational type to the global economy
The argument may not be sufficient to justify the recent research focus: the economic impact alone does not reflect the essence of family firms, whose specificity must rest on internal aspects, not on external consequences
The relationship is positive when property is concentrated in the first generation, becoming negative as FBs lifecycle is advanced – suggesting that potential beneficial effects of discordance would be mitigated and even inverted as new descendants take over the property
Summary
One of the main arguments employed to justify research focus on family business (FB) is the relevance of this organizational type to the global economy. The argument may not be sufficient to justify the recent research focus: the economic impact alone does not reflect the essence of family firms, whose specificity must rest on internal aspects, not on external consequences In this sense, theres a consensus among scholars that its the joint interaction of family relationships in the property and management subsystems what really makes FBs unique and particular (Astrachan, Klein, & Smyrnios, 2002; Tagiuri & Davis, 1996). Contrary to common sense, functional effects could emerge from conflicts: researchers suggest that, when oriented to problem-solving, disagreements could stimulate the generation of alternatives, strengthen decision-making criteria, and create a commitment atmosphere among team members (Amason, 1996; De Wit, Greer, & Jehn, 2012) In the literature this dimension is best known as task conflict (Jehn, 1994), understood as disagreements related to the content of a given task. In addition to the introduction, this study is composed of three more sections: literature review, theoretical framework and conclusion
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