Pedro Braga Sotomaior Karam
Doctorate – Conflicts in family business board of directors: investigation of the antecedents and consequences in the strategic decision-making process
Advisor: Prof. Dr. Cláudio Antônio Pinheiro Machado Filho
Comission: Profs. Drs. Marco Antônio Conejero, Décio Zylbersztajn and Álvaro Machado Dias
Class: 217, FEA-5
Conflicts are social phenomena liable to occur in any organizational type; however, they´re more intense (and less understood) in the dynamics of family businesses, due to the unique psychodynamic effects of the interaction between family, management and property. At the same time, conflicts can also be particularly salient in the ambiguous and complex context of boards (the "black box" of corporate governance), by the intimate connection with strategic decisions. Intersecting the areas, this study identifies and measures the impact of antecedents and consequences of the cognitive and affective dimensions of intragroup conflicts in the strategic decision-making process (regarding the quality and adoption of strategic decisions), in the particular and favorable context of Brazilian family firms´ boards of directors. Investigating 81 decision-making processes in boards of 81 different family businesses, through survey, it is verified that: i) the percentage of independent directors does not influence the intensity of cognitive disagreements; ii) while boards characterized by high "trust based on competence" tend to reduce affective (personal) conflicts, the percentage of family members has an opposite effect, raising them; iii) the quality of strategic decisions is not influenced by the cognitive conflicts, but by the affective facet, presenting negative and significant relation. Theoretical and practical implications, as well as research suggestions, are discussed at the conclusion.
*Abstract provided by the author