Family businesses: mediation and governance as appropriate mechanisms for conflict management

Abstract

Given the complexity and peculiarities of family businesses, the study aims to investigate how mediation and governance structures can be used to manage, reduce, and resolve conflicts that arise in this area. To this end, the concepts of family business are analyzed, identifying the reasons for the high intensity and the harmful potential of these conflicts for companies. The main reasons for conflicts between family members are identified, and the suitability of some mechanisms to resolve them is investigated. Given the need to maintain the relationship between the parties and the benefits provided, mediation is chosen as an efficient mechanism for resolving and managing conflicts in these organizations. Furthermore, family governance structures emerge as capable means of managing relationships between family members and, indirectly, their interaction with the company. The way in which these instruments are implemented in the family business is also analyzed, as well as how a culture of mediation can be developed in this area, encouraging cooperative and dialogical attitudes. It is concluded that the appropriate resolution of conflicts must be, in most cases, within the scope of family organizations, carried out through mediation and combined with governance structures, especially family. The methodology adopted for the preparation of this essay is characterized as bibliographic, regarding the sources; qualitative, regarding the approach to the problem; and descriptive and exploratory, regarding the objectives.