Conflicts in family businesses: nature and effects

Abstract

The purpose of this paper is to analyse the nature and impact of conflicts in the functioning of family businesses in Macedonia. We use a case based study, where family businesses that operate in different markets in the country are surveyed. The survey was conducted through a structured questionnaire where a representative of family business was asked about issues regarding the nature of conflict, frequency of conflict, its effect, etc. It is concluded that conflicts are inevitable part of almost all family business that were surveyed, 88% claimed that they have experienced a different form of conflict in the last 12 months and that the main negative effects were on the performance of family business. The paper gives some important information about the conflict and its impact on family business. It also has practical implication on family business owners and researchers in Macedonia.