Intergenerational conflict during AI adoption in family firms: Evidence from a longitudinal two-country study

Abstract

Purpose: This research explores the development of intergenerational conflict during various phases of AI adoption in family businesses and investigates how governance practices influence the escalation of conflict in different countries.

Design/methodology/approach: We conducted a longitudinal, multiple-case study involving 13 family firms, 7 in India and 6 in Germany. Over 18 months, we performed 42 semi-structured interviews, complemented by internal documents and observations. We applied process coding and cross-case replication to identify conflict patterns over time and to compare the development trajectories across different contexts.

Findings: We recognize three paths of conflict escalation: latent, episodic, and escalating, each activated at specific transition points (idea → pilot, pilot → scaling, full roll-out). Governance tools, such as family councils, structured forums, and boundary spanners, help moderate escalation, though their effectiveness differs between India and Germany. In India, relational and informal governance often delay overt conflict but let underlying tension remain; in Germany, formal mechanisms tend to curtail overt conflict earlier but may trigger occasional spikes.

Originality/value: This research advances understanding of conflict processes in family firms during technology adoption. It integrates stewardship, socioemotional wealth (SEW), and conflict process thinking in a stage-based model. The cross-country design reveals how cultural and institutional context shapes governance efficacy and conflict trajectories.

Research limitations/implications: Our sample size limits the generalizability of our findings; we invite future large-sample quantitative testing of trajectory-governance relationships.

Practical implications: Family firm leaders should adopt stage-sensitive governance interventions, anticipating stage shifts as turning points for conflict.