Managing Conflict towards the Sustainability of Family Owned Businesses

Abstract

Family owned businesses (FOBs) contribute immensely to the economic growth of nations. However, just a very small percentage of these businesses survive after the death of their owner/founder. The major reasons for this huge failure rate were traced to lack of succession planning and the presence conflicts in the families of FOBs. Hence, this study reviewed conflict, its sources, causes, its management and preventive measures, the significance of sequence development and the role all play in the sustainability of FOBs. The study concluded that conflict definitely has a negative effect on FOBs if not handled properly and has a direct bearing on the sustainability of the businesses. Sequel to this, the study recommended among other things that negative conflicts should be carefully managed towards improving commitment and performance of FOBs.