Conflict, Participative Decision-Making, and Generational Ownership Dispersion: A Multilevel Analysis

Authors: Eddleston, Kimberly A.; Otondo, Robert F.; Kellermanns, Franz Willi

Source: Journal of Small Business Management, Volume 46, Number 3, July 2008 , pp. 456-484(29)

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Abstract:

This study examines how participative decision-making and generational ownership dispersion affect conflict in a sample of privately held U.S. family firms. Our study utilizes a hierarchical linear model approach to investigate “cross-level” effects between variables from different levels of analysis. Participative decision-making among family members was found to be associated with cognitive and relationship conflict. Furthermore, the relationship between participative decision-making and conflict as individual-level variables was moderated by generational ownership dispersion, a firm-level variable. When ownership was dispersed through multiple generations, participative decision-making was found to be positively related to cognitive and relationship conflict; however, in one- and two-generation ownership firms participative decision-making was found to be negatively related to cognitive and relationship conflict.

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1540-627X.2008.00252.x

Affiliations: 1: Mississippi State University

Publication date: 2008-07-01