A family perspective on when conflict benefits family firm performance

This study utilizes a conflict theory lens to examine when work-related conflict, specifically cognitive and process conflict, is beneficial to family firm performance. The paper further discusses family-member exchange and generational ownership dispersion as moderators of the relationship between conflict and family firm performance. Contrary to expectations, cognitive conflict is negatively related to family firm performance. However, as predicted, family-member exchange and generational ownership dispersion are significant moderators of the conflict-performance relationships. First-generation firms experience greater performance when cognitive conflict is encouraged. Family-member exchange increases the positive effect process conflict has on performance. (c) 2007 Elsevier Inc. All rights reserved.