Prof. of Strategy, Entrep. & Innovn., Amity Business School, Lucknow Campus Amity Univ., U.P.
Abstract
Family is emotions and business is about economics, both being inseparable. A combination of values,
ethics, dedication and discrete potential offered by each family member must exist. The worst is
when hostile family members have to work together, where self-interest is first. A critical problem
is the tension that exists between their personal lives and career pursuits of the family members,
including transition. Essentially, involvement in one role becomes more difficult because of involvement
in the other role (Finch, 2000)
Conflicts within family business may revolve around a different set of issues, such as money,
personalities or trust. The consequences of conflict in family business can be extreme, resulting
destruction to both the firm and the family (Levinson, 1971).
Family businesses being fragile, the failure to adequately control conflict may contribute to the
high mortality rate of family owned firms while it is said that roughly two-thirds of family-owned
and family-controlled businesses do not survive the founders generation (Beckhard and Dyer, 1983,
Dyer, 1986), with only 10 to 15 percent surviving to a third generation (Applegate 1994). Astrachan
(1988) suggests formalizing job descriptions, crafting family protocol manuals, independent nonexecutive
appointment to the board etc. to facilitate actions and ideas that could be judged objectively
by people outside the family. Therefore it is prudent to investigate on how Endogenous conflicts
are mitigated in closely held family businesses?
Results indicated conflicts started from ownership, to power positions. Forced entries of sibling in
the business with no competence besides the patriarchs distribution of business were of major concern,
hence, a need to professionalize.
Keywords: Closely Held Family Business, Conflicts, Conflict Management, Family Business, India.
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