New value creation and family business sustainability: Identification of an intergenerational conflict resolution strategy

Unresolved tensions frequently lead to the failure of family businesses. Parents and their children should be able to work together to resolve protracted problems. This study intends to explore the intergenerational conflict resolution strategy in an effort to develop new family business values and ensure the sustainability of family enterprises. The respondents in this study were 152 family business owners in Eastern Indonesia. The analysis used is PLS-SEM. The results of this study indicate that creating new value requires three intergenerational conflict resolution strategies: intergenerational collaboration, accommodation, and forcing. The results of this study also show that a family business that is able to create new value will be able to have an impact on the sustainability of the family business. This study contributes to the Thomas-Kilmann conflict mode approach, wherein the Thomas-Kilmann conflict mode instrument method leads to the creation of new values and sustainability in family enterprises.