Conflict Management Strategies and the Digitalization of Family Firms: The Moderating Role of Generational Ownership Dispersion

Family business research indicates that digital transformation may lead to substantial conflicts. However, little is known about how conflict management strategies address such conflicts. We thus mobilize conflict theory and empirically examine the impact of these strategies on the level of family business digitalization and whether such strategies are contingent on the number of ownership generations involved. To do so, we draw on a combination of a survey of 85 German family firms and in-depth interviews with 13 family business actors. Our quantitative results indicate that selected strategies can help reach higher levels of digitalization, but their effects are contingent on generational ownership dispersion. Additionally, our qualitative insights suggest that, in case of multiple active ownership generations, senior family generations feel less responsible for digitalization and pass it on to the younger generation. However, where ownership is concentrated in one generation, collaboration strategies seem crucial to prevent digitalization-related conflicts.