ABSTRACT
Family businesses are the most prevalent type of organization in the world. A family business is any business where one or several families have effective control over the strategy of the business and where the business contributes significantly to the wealth and identity of the family. The business can affect the family in a variety of ways. Most importantly, the business usually provides financial returns, jobs, and opportunities for venturing to the owning family. When family and business systems are aligned and mutually support each other, they create a "virtuous cycle" that often brings out the best in family businesses. While conflict in family business cannot be avoided, there are means to manage it and reduce potential detrimental effects. Conflict can even prove healthy, when managed well. From a scientific perspective, the bivalent attributes of family businesses provide for a unique research context in which to investigate novel phenomena that go beyond what is typically studied in the mainstream literature.
