Ga ić, Tanja; B aje, I ana Načino ić
A icle
Managing cul u al di e si y and con lic in amily
businesses: An o ganiza ional pe spec i e
Adminis a i e Sciences
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Ci a ion: Ga i´c, Tanja, and I ana
Naˇcino i´c B aje. 2024. Managing
Cul u al Di e si y and Con lic in
Family Businesses: An O ganiza ional
Pe spec i e. Adminis a i e Sciences 14:
13. h ps://doi.o g/10.3390/
admsci14010013
Recei ed: 10 Oc obe 2023
Re ised: 3 Janua y 2024
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adminis a i e
sciences
A icle
Managing Cul u al Di e si y and Con lic in Family Businesses:
An O ganiza ional Pe spec i e
Tanja Ga i´c 1,* and I ana Naˇcino i´c B aje 2
1Facul y o Business Economics, Uni e si y “VITEZ”, 72270 T a nik, Bosnia and He zego ina
2Facul y o Economics & Business, Uni e si y o Zag eb, 10000 Zag eb, C oa ia; [email p o ec ed]
*Co espondence: [email p o ec ed]
Abs ac : This s udy aims o in es iga e he occu ence o con lic s in amily businesses, pa icula ly
ocusing on hei impac on ounde beha io and o ganiza ional cul u e. Conduc ed in Bosnia and
He zego ina, he esea ch employs a quali a i e me hodology o gain an in-dep h unde s anding o
con lic s wi hin amily businesses. The s udy u ilizes semi-s uc u ed in e iews as he p ima y da a
collec ion ool, engaging wi h 5 ounde s and 12 successo s ac oss a ious amily owned businesses.
The sample, comp ising 17 pa icipan s, o e s di e se pe spec i es on con lic dynamics be ween
ounde s and successo s. The in e iews, designed o explo e ecu ing key hemes, del e in o he
na u e and cha ac e is ics o ask and p ocess-based disag eemen s wi hin hese amily en e p ises.
Key indings om his s udy include he obse a ion ha ask o p ocess-based disag eemen s,
commonly a ising be ween amily membe s, can ac as ca alys s o ounde s o e-e alua e hei
beha io , po en ially in luencing he shaping o he o ganiza ional cul u e. The esea ch highligh s
he impo ance o os e ing a cul u e o open communica ion, c i ical hinking, and espec wi hin
amily i ms. Such a cul u e can play a signi ican ole in educing ela ionship con lic s and aid in
eaching cons uc i e esolu ions. Addi ionally, he s udy e eals ha he ea u es o o ganiza ional
cul u e wi hin amily businesses can be ins umen al in managing con lic s e ec i ely. This esea ch
unde sco es he complexi y o amily ela ionships in business se ings and emphasizes he necessi y
o examining hese dynamics om mul iple angles. Gi en he p e alence o amily membe s in key
posi ions wi hin amily i ms, he s udy sheds ligh on he impo ance o add essing di e si y and
con lic among amily membe s, conside ing hei long- e m implica ions on he cul u e and u u e
o hese i ms.
Keywo ds: amily business; con lic ; o ganiza ional cul u e; ounde ; successo ; di e si y
1. In oduc ion
Family i ms play a key ole in he economic g ow h and employmen o any coun y
(De Massis e al. 2018;Basco e al. 2021). Thus, o e 50% o companies opened in Eu opean
coun ies a e amily businesses (Ro a u e al. 2020). A small numbe o amily businesses
su i e beyond he i s gene a ion and succeed as independen bodies o he hi d o
ou h gene a ion (Mokhbe e al. 2017). Reasons o he dea hs o amily businesses ange
om inadequa e economic si ua ion, insu icien capi al and esou ces, incompe en man-
agemen o many gene a ional o amily ela ed ac o s ha a ec he sus ainabili y o hese
businesses (Bedna z e al. 2017;Mo eno-Menéndez e al. 2022). Despi e he undispu able
impo ance o amily i ms, schola s a e deba ing abou he dis inc i e ea u es ha make
hem di e en om non- amily i ms (e.g., see Dawson and Mussolino 2014;Zajkowski
e al. 2022). Se e al au ho s a gued ha cul u e o amily businesses plays an impo an
ole in de e mining whe he he i m con inues success ully beyond he i s gene a ion
(e.g., Dye 1988;Vallejo 2008). As amily i ms’ cul u e is by some au ho s seen as a s a egic
esou ce ha can sus ain hei compe i i e ad an age (Zah a e al. 2004;Vallejo-Ma os
2011;La o e 2016) and imp o e i m pe o mance compa ed o non- amily i ms (Denison
Adm. Sci. 2024,14, 13. h ps://doi.o g/10.3390/admsci14010013 h ps://www.mdpi.com/jou nal/admsci
Adm. Sci. 2024,14, 13 2 o 17
e al. 2004;Sánchez-Ma ín e al. 2015;Rai is e al. 2020), unde s anding cul u al pa e ns
migh ha e c i ical impo ance o he success o amily i ms.
O ganiza ional cul u e e e s o he cohe en pa e n o belie s and alues ha ep esen
common solu ions o majo o ganiza ional p oblems (e.g., Schein 1983), whe e cul u al
alues ac as wide-adop ed no ms o beha io (Tipu 2018). In amily i ms, o ganiza ional
cul u e is g ea ly shaped h ough he p ocesses o in e gene a ional in e ac ion (Che chem
2017;Mag elli e al. 2022). Howe e , al hough gene a ions a e a cons i u i e elemen o
amily i ms, a ull unde s anding o all epe cussions om hei in ol emen in amily
business is limi ed (Mag elli e al. 2022). Fo example, in e gene a ional di e ences in
he wo kplace a e a well-documen ed sou ce o con lic (U ick e al. 2017;Hi sch 2020),
esul ing wi h he inding ha amily i ms expe ience con lic s e en mo e o en han o he
companies (G oßmann and Schlippe 2015;Capu o e al. 2018). As ounde s o en desi e o
e ain amily con ol e en pas hei enu e, in he cou se o in e gene a ional ansi ion
and succession, ensions can occu be ween he need o hono he ounde ’s ision o he
i m o adap o he ision o he child en/successo s (Suddaby and Jaskiewicz 2020), as
well as o he alue ensions be ween amily membe s (Rai is e al. 2020) due o di e si y
and di e en pe spec i es. Conside ing he occu ence o con lic s in amily i ms, exis ing
academic pape s seek o a quali a i e, in-dep h-analyses o con lic s in amily i ms ha a e
cu en ly lacking (G oßmann and Schlippe 2015). This pape a emp s o ill his esea ch
gap, bu also akes a s ep u he as i seeks o examine he e ec s o such in a- amily
con lic dynamic on he o ganiza ional cul u e in amily i ms. In o de o con ibu e o his
s em o esea ch, pape p oceeds wi h wo esea ch ques ions.
The i s esea ch ques ion ha is o be answe ed wi h his wo k is: wha a e he sou ces
and ypes o in e gene a ional con lic in amily i ms? Some con lic s can s eng hen he
cohesion o he amily uni and acili a e choices o bo h he business and he amily
(Kelle manns and Eddles on 2007). Ye , con lic s and con lic esolu ion s a egies amend
he social sys ems wi hin o ganiza ion, hus by applying he sys ems heo y o o ganiza ion,
eac ion and adap a ion migh occu (Vallejo 2008;G oßmann and Schlippe 2015;Pieka czyk
2017;Tipu 2018), leading o changes in he accep ed beha io ules. Namely, con lic s due
o alues and aspi a ions o he many gene a ions in ol ed in amily i ms (Hall e al.
2001;Vallejo 2008;Sindakis e al. 2022) migh gi e ise o sel - e lec ion and c ea e posi i e
change in ounde s’ pe cep ions and beha io s (Speakman and Ryals 2010). By adop ing
con lic ans o ma ion app oach, such con lic s become a o ce ha leads o cons uc i e
change due o he ene gy c ea ed by con lic (Lede ach and Maiese 2003). Gi en he
impo ance o ounde cen ali y in o ganiza ional cul u e esea ch (Schein 1983;Tipu 2018),
Sindakis e al. (2022) a gued ha applying cogni i e heo y and in es iga ion o indi idual
pe cep ions and easoning in u u e s udies could be bene icial. In ha sense, his pape
ques ions whe he con lic s can igge ounde s o change beha io pa e ns and in his
way shape cul u al elemen s, especially hose laye s o cul u e such as pa e ned ways o
beha io and alues; leading o second esea ch ques ion: wha oles do in e gene a ional
dynamics be ween ounde and successo s and con lic esolu ion ha e on cul u al pa e ns
in amily i ms?
To espond o he esea ch ques ions, 17 in-dep h in e iews we e conduc ed wi h
ounde s o successo s o i s -gene a ion amily i ms in Bosnia and He zego ina.
This pape p oceeds as ollows: a e a li e a u e e iew abou he o igins o cul u e
among amily i ms and he occu ence o con lic s, me hodology o esea ch is p esen ed.
The discussion pa includes he analysis o key indings and i s alignmen wi h p e ious
esea ch esul s. The conclusion o his pape o e s impo an insigh s wi h espec o
cul u e o ma ion ollowing con lic s among i s -gene a ion amily i ms.
Adm. Sci. 2024,14, 13 3 o 17
2. Li e a u e Re iew
2.1. Fea u es o O ganiza ional Cul u e in Family Fi ms
Fou decades ago, in his seminal wo k on o ganiza ional cul u e, Schein (1983) ecog-
nized ha i m ounde s s ongly impac he e olu ion o o ganiza ional cul u e, as la e
con i med by se e al s udies (e.g., see Hall e al. 2001;Tipu 2018;Sindakis e al. 2022).
Acco ding o Schein, en ep eneu s ha e a clea idea o wha hey wan o achie e and
how should he o ganiza ion hey manage beha e. All his leads o imp in ing ounde ’s
ision, leade ship, and decision-making on o he i m (Da is and Ha es on 1999;Chua
e al. 2004) and mani es ing ounde ’s pe sonali y in amily i m alues and o ganiza ional
cul u e. Adop ed alues u he de ine i m’s ope a ing s yle and esponse o change (Tipu
2018) and se e as a d i e o en ep eneu ship and g ow h (Rai is e al. 2020). Family i ms
a e known o hei s ong and alue-based cul u es (Sindakis e al. 2022), whe e adop ed
alues de ine co po a e aims and p o ide a common basis o dealing wi h disag eemen s,
challenges, and new ini ia i es. Th ough in e gene a ional ansmission hese a e hen
passed o new gene a ions in leading posi ions (Bika e al. 2019) and become a cen al
elemen o cul u e, and a ounda ional elemen in decision making (He e a and de las
He as-Rosas 2020;Suddaby and Jaskiewicz 2020).
Family i ms, especially i s -gene a ion amily i ms, mos o en de elop pa e nalis-
ic cul u e (Dye 1988). Such cul u e is unique as i emphasizes he ounde ’s cen ali y
and amily’s legacy, which ully con i ms Schein’s assump ion ha ounde s ha e a p e-
ailing impac on shaping amily i m cul u e. Resea ch has ound ha a pa e nalis ic
ounde -cen e ed cul u e ype does no always ha e a posi i e impac on i m pe o mance,
especially among SME amily i ms (La o e 2016) leading o inding ha holis ic iew
o amily i ms o e looks he ac ha hese i ms a e no a homogeneous en i y (Heck
2004;Wes head and Howo h 2007;W˛ecławski and ˙
Zukowska 2019). Fu he mo e, he
adop ion o a speci ic cul u al con igu a ion will p o enly a y acco ding o he amily
cul u e, i s di e si y o belie s, alues, goals, his o y, and he social ela ionships o he
amily i sel (Hall e al. 2001;Heck 2004;Tipu 2018) indica ing ha amily ies ha e a ole
in shaping cul u e wi hin amily i ms (Mag elli e al. 2022). Addi ional amily ela ed
de e minan s o amily i m cul u e include he le el o amily in ol emen in business,
meaning is he i m only owned by he amily o also managed by he amily (Denison e al.
2004;Sánchez Ma ín e al. 2016), he ype o amily domina ion (one o se e al membe s),
deg ee o openness and cul u al explici ness (Hall e al. 2001), as well as o he ex e nal
p essu es (Rai is e al. 2020). Clea ly, he in e play o in e nal and ex e nal cons i uencies
impac s on he change in amily i ms’ cul u e and alues o e ime (Hall e al. 2001), and
he shu ling o amily ela ionships should be u he in es iga ed.
Gene a ional ansi ion and succession, a unique ea u e o amily i ms, has also been
ecognized as a o ce wi h po en ial o shape cul u e (Vallejo 2008;Che chem 2017). The
numbe o gene a ions in ol ed in he business is hus ele an ac o while discussing
amily i ms’ cul u e (Chi ico and No dq is 2010). Pa icipa ion o all g oups in ol ed in
amily business, ela ionships based on us , s imula ing dialogue, and nego ia ion migh
be use ul o achie e ha mony and minimize con lic s (Vallejo 2008). Howe e , e idence
shows ha mul i-gene a ional amily i ms can be p one o con lic s among amily membe s
(see F ank e al. 2011), he e o e con lic s in amily i ms need u he a en ion.
2.2. Con lic s in Family Fi ms
In ol emen o he amily in business is o en po ayed bo h as a special ea u e
o he amily business and as an impo an sou ce o con lic in hese businesses (Qiu
and F eel 2020). When amily and business a e mixed, many posi i e e ec s a ise; such
as amily heal h and p ospe i y, abo e-a e age company pe o mance, be e employee
e en ion, socially esponsible business, and en i onmen al ca e (Piepe e al. 2013). On he
o he hand, while wo k can mee a amily’s needs o income, job, and pe sonal ul ilmen ,
human and inancial esou ces can cause a i in he amily sys em. Likewise, al hough
amily membe s can p o ide a skilled and loyal wo k o ce a wo k, amily con lic s and
Adm. Sci. 2024,14, 13 4 o 17
nepo ism can pene a e business and wo sen company pe o mance (Piepe e al. 2013;
Maha ajh e al. 2023).
Two commonly ound ypes o amily s ipula ed con lic s a e p ocess and ask con lic s
(F ank e al. 2011;Jehn 2014). Task con lic s occu in he o m o disag eemen s among am-
ily membe s abou goals, s a egies and he con en o he ask being pe o med, including
di e ences in iews, ideas, and opinions (Iqbal and Fa ima 2013); o en occu ing be ween
amily membe s due o gene a ional di e si y. P ocess con lic s e e o disag eemen s
abou how he goals should be achie ed (Kelle manns and Eddles on 2007). When mo e
gene a ions ge in ol ed in he amily business bo h ask and p ocess con lic s end o
inc ease, ye hese a e expec ed o be unc ional con lic s, unlike in e pe sonal ela ionship
con lic s which ha e been ound o dec ease he pe o mance and sa is ac ion o all pa ies
in ol ed in he amily business (Kelle manns and Eddles on 2007;Roseckáand Machek
2023). Task and p ocess con lic s ha e an ambiguous ole in he amily business li e a u e.
On he one hand, schola s a gue ha hese con lic s can s imula e c ea i i y and imp o e
decision-making p ocesses (De D eu and Weinga 2003;Kelle manns and Eddles on 2007),
while ea lie au ho s (e.g., Ha ey and E ans 1994) highligh he de imen al e ec s o
hese con lic s on o ganiza ional pe o mance and employee sa is ac ion. This con adic ion
in pe spec i es highligh s he need o a mo e de ailed and nuanced in es iga ion in o he
speci ic mani es a ions o ask and p ocess con lic s in amily businesses, along wi h hei
dis inc e ec s.
Family businesses’ ounde s ha e a c ucial ole in c ea ing an en i onmen ha en-
cou ages successo s o lea n om expe ience, accep hei own mis akes, de elop hei
sel -con idence and manage ial au onomy and pu se amily business con inui y (LeCoun e
2022). Bu , on he o he hand, he exis ence o excessi e and inapp op ia e engagemen
o he p e ious gene a ions can cause social dis up ions and a highe le el o con lic in
he o ganiza ion (Mo eno-Menéndez e al. 2022). This in e e ence may be e en mo e
no iceable in he case o succession, gi en he g ea in luence he ounde has on he cul u e
and p ocesses o he company and his esis ance o lea ing he company (Rhodes and
Lansky 2013).
The challenges ha come wi h “in e gene a ional change” in amily businesses a e
unique and equi e a di e en app oach depending on he cha ac e is ics o he incoming
gene a ion. Con lic can a ise in his pe iod o a ious easons, wi h di e ences in alues,
p io i ies, and di e si y du ing in e gene a ional succession being one o he mos signi i-
can ac o s (Gómez-Mejía e al. 2007). The incoming gene a ion may ha e di e en alues
and p io i ies han he olde gene a ion, leading o disag eemen s abou he di ec ion and
goals o he business. Fo example, he olde gene a ion may be esis an o change while
he incoming gene a ion may wan o in oduce new echnologies, business models, o
expansion s a egies (Klein e al. 2005). This can c ea e ensions and con lic wi hin he
amily, as bo h gene a ions s uggle o econcile hei di e en iews. A powe s uggle
can especially a ise du ing in e gene a ional succession as he ou going gene a ion may be
eluc an o gi e up con ol, while he incoming gene a ion may eel us a ed wi h hei
lack o decision-making powe (Mille and Le B e on-Mille 2021). This powe imbalance
can c ea e con lic wi h nume ous consequences, including he e ec on cul u e.
Gene a ions may s uggle o communica e e ec i ely due o di e ences in communi-
ca ion s yles o a lack o us (Sha ma e al. 2003), leading o ano he ac o con ibu ing o
con lic du ing in e gene a ional succession. Lack o communica ion can lead o misun-
de s andings and con lic , making i di icul o de elop a clea succession plan. Finally,
emo ional a achmen also con ibu es o con lic du ing in e gene a ional succession. The
ou going gene a ion may ha e an emo ional a achmen o he business, making i di icul
o hem o le go o con ol (Da is and Ha es on 1999), which can c ea e con lic and
make i challenging o de elop a clea succession plan.
The li e a u e has o en dis ega ded he c ucial aspec o con lic esolu ion app oaches
in amily businesses. A s udy by Alde son (2015) a emp ed o add ess his gap by shedding
ligh on he di e se s a egies employed by amily i ms o manage con lic s e ec i ely. The
Adm. Sci. 2024,14, 13 5 o 17
esea ch emphasizes he impo ance o unde s anding how con lic esolu ion app oaches
can in luence he long- e m sus ainabili y and success o hese businesses. I managed
app op ia ely, con lic can lead o oppo uni ies o g ow h and inno a ion wi hin he o ga-
niza ion (Lede ach and Maiese 2003), con ibu e o he de elopmen o new pe spec i es,
and ul ima ely esul in a s onge , mo e esilien amily business (Capu o e al. 2018). The
abili y o iden i y con lic and deal wi h esolu ion p ocesses is o en beyond he manage ial
skills o ime o he amily membe . Con lic ha is no add essed and is allowed o linge
in he amily business o wi h he ex e nal cons i uen s may c ea e p oblems ha a e e y
complex (Qiu and F eel 2020). Resol ing hese con lic s, and ul ima ely imp o ing he
heal h and esilience o amilies and hei businesses, hinges on imely iden i ica ion and
subsequen ea men o po en ial p oblems esul ing p ima ily om he business’s impac
on and in e ac ion wi h he amily sys em (Danes and Lee 2004).
2.3. Implica ions o Con lic s in Family Fi ms
Family businesses’ unique dynamics can gi e ise o con lic s ha may be di icul
o esol e (Chua e al. 2004). These con lic s a ise due o a a ie y o ac o s, including
compe ing goals and in e es s, powe s uggles, and emo ional en anglemen s (Da is and
Ha es on 1999). The ou comes o con lic s ha e signi ican implica ions o he long- e m
success and sus ainabili y o he amily business. When con lic s emain un esol ed o
a e no handled p ope ly, hey can lead o bi e ness, esen men , and a b eakdown in
communica ion be ween amily membe s (Gómez-Mejía e al. 2007;Claßen and Schul e
2017), which no only damages he business bu also he amily’s o e all well-being. In
some cases, un esol ed con lic s may e en esul in amily membe s lea ing he business
o selling hei sha es, leading o a loss o expe ise, knowledge, and aluable esou ces
(Sha ma e al. 2003). On he o he hand, many con lic s ha e posi i e ou comes, such as
inc eased inno a ion, imp o ed decision-making, and enhanced c ea i i y (Danes and
Lee 2004). Con lic can s imula e change and b ing a en ion o issues ha may ha e
been p e iously igno ed o o e looked, leading o g ow h and de elopmen in he amily
business. In some cases, con lic may e en se e as a ca alys o gene a ional enewal and
succession planning, helping o ensu e he long- e m con inui y o he amily business
(Wa d 2011). Family membe s om di e en gene a ions may esis open knowledge
sha ing wi h each o he i hei ela ionships a e ma ked by g ea e con lic due o di e si y
in expe iences and iewpoin s (Wood ield and Hus ed 2017).
The esolu ion o con lic s in amily businesses depends on se e al ac o s, including
he na u e o he con lic , he deg ee o emo ional in ol emen , he di e si y o pe spec i es,
and he willingness o amily membe s o engage in a collabo a i e p oblem-sol ing p ocess
(Klein e al. 2005). Managing con lic in an in eg a i e manne e lec s he needs and
p io i ies o o he s (Song and Wang 2013), wi h amily membe s seeking o sa is y each
o he ’s needs by seeking accep able comp omises. This app oach in ol es open knowledge
exchange ac oss gene a ions, wi h open, de ailed discussions o opposing iews (Alpe
e al. 2000). In con as , using domina ion o manage con lic ca ies low conce n o he
p e e ences o amily membe s and membe s o o he gene a ions (Song and Wang 2013). In
a amily business, he ole o p edecesso s can be a de e minan in c ea ing an en i onmen
ha encou ages successo s o lea n om expe ience, accep hei own mis akes, and p o ide
a place whe e signi ican p og ess can be made in he de elopmen o hei con idence and
manage ial au onomy (Calab òand Mussolino 2012). C ea ing a cul u e o lea ning and
g ow h wi hin he amily business can acili a e his p ocess (U ick e al. 2017). Es ablishing
e ec i e con lic esolu ion policies and p ocedu es, including he use o amily councils,
independen ad iso s, and o he hi d-pa y esou ces, migh help mi iga e he nega i e
e ec s o con lic s (Klein e al. 2005).
Adm. Sci. 2024,14, 13 6 o 17
3. Ma e ials and Me hods
3.1. Con ex ualiza ion
This s udy u ilizes quali a i e me hodology using hema ic analysis o explo a ion
as his app oach allows esea che s o be e unde s and he eelings o he indi iduals
in ol ed in he esea ch (B aun and Cla ke 2006). The esea ch sheds ligh on he sou ces
and ypes o in e gene a ional con lic in amily i ms, and he esolu ion o hese con lic s.
The backg ound o he s udy is oo ed in he signi icance o amily businesses, which play a
i al ole in he economic de elopmen o coun ies, including Bosnia and He zego ina. The
analysis begins wi h c ea ing a amewo k based on he concep ual dimensions highligh ed
in he p e ious li e a u e e iew (Cha maz 2014).
3.2. Sample Selec ion
Fo his s udy, da a we e ga he ed h ough 17 in-dep h, semi-s uc u ed in e iews
conduc ed wi h amily business membe s loca ed in Bosnia and He zego ina. When
choosing sui able pa icipan s o his esea ch, hey we e sough ounde s and successo s
who we e eady o openly alk abou con lic s. The selec ion o amily business was
based on he ollowing c i e ia: (1) does he i ms decla e hemsel es as a amily business;
(2) is a amily business owned by one amily, (3) a e he e a leas wo gene a ions o
he owning amily in ol ed in he business. A e se ing he c i e ia au ho s s a ing
con ac ing i ms. O he app oxima ely 30 amily businesses con ac ed o olun ee o
he in e iew, 10 i ms ag eed o pa icipa e in he s udy. Random sample s a egy was
used o hi ing esponden s, whe e each indi idual has an equal and simila p obabili y o
selec ion (C eswell 2013). Such andomiza ion o sampling gene a es esul s ha di e si y
he da abase esul and hus has g ea e implica ions o gene aliza ion in la ge popula ion
samples. Responden s we e selec ed based on hei s a us in he amily business, only
ounde and po en ial successo o he business we e included. Age, gende , and o he
demog aphic cha ac e is ics, as well as he size o he business we e no es ic i e. A o al
o 12 successo s and i e ounde s we e in e iewed.
To inc ease he a ia ion ele an o esea ch ques ions, a sampling me hod ha consid-
e ed se e al ac o s such as he employee s a us, i m size and age o he i m was employed.
This allowed o cap u e di e se pe spec i es and expe iences om esponden s. To gain
a comp ehensi e unde s anding o in e gene a ional con lic , ounde s and successo s
om he same company we e in e iewed (In e iewees 2 and 7, In e iewees 4 and 17,
In e iewees 5 and 6, In e iewees 10, 11, and 12, and In e iewees 13 and 14). Al hough
i was a emp ed o in e iew bo h owne s and successo s om each company, no all
ounde s we e willing o pa icipa e esul ing in a disc epancy in he numbe o owne s
and successo s. Despi e esponden s being amilia wi h each o he , in e iews we e con-
duc ed sepa a ely o ensu e unbiased esponses. Resea ch has shown ha ounde s may be
eluc an o discuss ce ain aspec s o hei business, pa icula ly hose ela ed o succession
planning and con lic esolu ion, possibly due o he eelings o owne ship, a achmen , and
iden i y ha make hem esis delega ing au ho i y o su ende ing con ol o successo s
(Da is and Ha es on 1999). In con as , successo s may ha e a di e en pe spec i e on
hese opics and may be mo e willing o discuss hem openly and may ha e a mo e ealis ic
iew o he business, less biased by hei pe sonal his o y and he pas successes o he
business, which can make hem mo e open o discussing succession and con lic esolu ion
(Zah a e al. 2004). The e o e, by allowing o a lexible app oach in he numbe o ounde s
and successo s in e iewed, he esea che s we e able o ob ain mo e ealis ic and hones
answe s om he in e iewees. Table 1p o ides a summa y o he sample, which includes
bo h ounde s and successo s belonging o he same o ganiza ion.
Adm. Sci. 2024,14, 13 7 o 17
Table 1. Employmen s a us and demog aphic in o ma ion o amily membe s.
Gende Employmen S a us Fi m Size Fi m Age P ima y Indus y
In e iewee 1 F Di ec o /successo 32 8 Hospi ali y indus y/ ou ism
In e iewee 2 M Di ec o o inance/successo 40 27 Manu ac u ing
In e iewee 3 F Founde 3 16 Re ail sales
In e iewee 4 M Execu i e di ec o /successo 114 27 Re ail and se ice
In e iewee 5 M Founde 90 26 Manu ac u ing
In e iewee 6 F Execu i e di ec o /successo 90 26 Manu ac u ing
In e iewee 7 M Founde 40 27 Manu ac u ing
In e iewee 8 M Di ec o /successo 25 18 Re ail sales
In e iewee 9 M Di ec o /successo 3 16 Re ail sales
In e iewee 10 M Founde 5 27 Habe dashe y
In e iewee 11 M Employee/successo 5 27 Habe dashe y
In e iewee 12 M Di ec o /successo 5 27 Habe dashe y
In e iewee 13 M Founde 2 50 Manu ac u ing
In e iewee 14 M Di ec o /successo 2 50 Manu ac u ing
In e iewee 15 M Managing di ec o /successo 7 19 Media and B oadcas ing
In e iewee 16 M Di ec o /successo 6 33 Re ail sales
In e iewee 17 M
Fo wa ding manage /successo
114 27 Re ail and se ice
Sou ce: own s udy.
3.3. In e iew P ocess
Da a we e collec ed by using semi-s uc u ed in e iews. A key conside a ion in
selec ing in e iew pa icipan s was he in ol emen o he second gene a ion in he amily
business. The semi-s uc u ed in e iew p ocess consis ed o bo h gene al and open-ended
ques ions, aimed a s imula ing na a i es abou signi ican u ning poin s and con lic s
in he his o y o he amily businesses. The ini ial ques ions we e gene al in na u e, wi h
he aim o es ablishing a appo and c ea ing a com o able space o he in e iewees
o sha e hei pe sonal associa ions and na a i e h eads. As he in e iew p og essed,
mo e sensi i e ques ions we e asked abou in e gene a ional con lic , building on he
ea lie esponses o gene a e mo e in-dep h discussions. The in en ion was o allow he
in e iewees o sha e hei expe iences and insigh s while also c ea ing he oppo uni y o
he esea che o del e mo e deeply in o speci ic hemes and opics. All 17 esponden s
we e in e iewed indi idually, and hei iden i ies we e disguised: hey we e named
by pseudonyms. Mos in e iews we e conduc ed a he esponden s’ wo kplace. The
in e iew session las ed be ween 30 min and wo hou s. In e iews wi h some ounde s
las ed mo e han expec ed, mos ly because hey we e less open o alking abou con lic s,
so au ho s used addi ional ques ions o ga he su icien in o ma ion. All in e iews we e
conduc ed in a iendly en i onmen , wi h au ho s being in he posi ion o a lis ene s i ing
o main ain a com o able and s imula ing en i onmen and no a ec ing answe s. All
in e iews we e conduc ed in he pa icipan s’ na i e language.
3.4. Coding and Analyzing
To conduc he coding p ocess and analysis, he g ounded heo y app oach was
employed (S auss and Co bin 1998). Such app oach in ol es a sys ema ic and i e a i e
p ocess o da a collec ion, analysis, and in e p e a ion, wi h he goal o gene a ing heo y
ha is g ounded in he da a (Cha maz 2014). In e iews wi h amily business ounde s and
successo s we e ansc ibed and analyzed using a coding scheme. We s a ed by eading
h ough he in e iew ansc ip s o amilia ize ou sel es wi h he da a. We hen used an
Adm. Sci. 2024,14, 13 8 o 17
induc i e app oach o coding, allowing he hemes o eme ge om he da a a he han
imposing p econcei ed ca ego ies on o he da a (Cha maz 2014). Meaning ul uni s o
da a we e iden i ied and assigned wi h desc ip i e labels. This p ocess con inued un il
sa u a ion, o he poin a which no new codes o hemes eme ged om he da a. As he
da a we e coded, pa e ns and connec ions be ween he codes s a ed o eme ge. Axial
coding was used o g oup ela ed codes oge he and de elop b oade ca ego ies, o hemes.
Axial coding in ol es linking ca ego ies based on hei ela ionships o one ano he , such
as how hey a e ela ed concep ually, causally, o ch onologically (S auss and Co bin 1998).
Th ough he axial coding p ocess, di e en ypes o con lic s p esen in he da a we e
iden i ied and ca ego ized in o h ee main ypes: gene a ional di e ences, ask con lic ,
and ela ionship con lic s ela ed o amily ma e s (see Table 2). We hen examined he
causes and consequences o each ype o con lic . To ca ego ize he causes o con lic s,
we sea ched o ecu ing pa e ns in he esponses and iden i ied ou main ca ego ies,
encompassing he di e si y o gene a ional di e ences in ideas and ways o doing hings,
esis ance o change, pe sonal eelings, and lack o openness and hones y. We hen analyzed
he consequences o con lic s, which o en included con lic esolu ion and he adop ion o
new alues.
Table 2. Coding scheme.
Types o Con lic s Causes o Con lic s Consequences o Con lic s
Gene a ional di e ences Di e si y in ideas and app oaches due o
gene a ional di e ences
Con lic esolu ions, adop ing new alues
Task con lic Resis ance o change, lack o openness and hones y Imp o ed communica ion and
collabo a ion, inc eased p oduc i i y
Rela ionship con lic s Pe sonal eelings, lack o clea communica ion,
succession planning disag eemen s S ained amily ela ionships
Sou ce: own s udy.
4. Resul s
The s udy in ol ed 17 pa icipan s om di e se amily businesses in Bosnia and
He zego ina. This g oup consis ed o 5 ounde s and 12 successo s, p o iding a balanced
iew o bo h he es ablished and upcoming gene a ions in amily businesses. Among he
pa icipan s, he e was a gende dis ibu ion o 13 men and 4 emales. The successo s,
comp ising 70% o he pa icipan s, b ough esh pe spec i es o he esea ch, while
he ounde s, ep esen ing 30%, o e ed insigh s oo ed in expe ience and adi ion. The
successo s’ ages anged om ea ly 30s o mid-40s, indica ing a younge coho aking up
s a egic oles in hese amily i ms. The ounde s we e p edominan ly in hei 60s and
70s, p o iding a con as in gene a ional iewpoin s. The pa icipan s held a ious oles
wi hin hei i ms, anging om di ec o s and CEOs o depu y di ec o s, highligh ing a wide
spec um o manage ial and leade ship expe iences. The i ms a ied in size, wi h employee
numbe s anging om 2 o 114, indica ing a mix o small o medium-sized en e p ises.
These i ms ope a ed in a ious indus ies, including hospi ali y, manu ac u ing, e ail
sales, habe dashe y, and media and b oadcas ing, and had been in ope a ion o pe iods
anging om 8 o 50 yea s. Th ee speci ic opics, co esponding o esea ch ques ions,
eme ged as a pa o in e iews wi h owne s o successo s o amily i ms: con lic s in
amily i ms, esol ing con lic si ua ions, and he possible ole o con lic s in shaping
pa e ned beha io s.
4.1. Sou ces o Con lic s in Family Fi ms
Su ey pa icipan s we e i s asked abou he occu ence o con lic s wi hin amily
i ms, namely con lic s among amily membe s. Family membe s wo king in amily
companies a e expec ed o ul il dual oles, being a amily membe and an employee
which, in combina ion wi h in e gene a ional di e ences, can c ea e ensions and possible
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