Family Conflict and Farm Profitability: Not Always a Negative Relationship
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This article analyzes the effects of conflict using a non-linear model and relies heavily on
economic theory to define the relationship between conflict and profitability. This research
builds on the model of Kretchmer and Puranam (2008), an effort-based model that captures the
effects of employee collaboration. We expand upon this model and derive and test two main
hypotheses. The first deals with the convexity of the relationship between conflict and
profitability. The second analyzes the effect family business structure has on conflict and
profitability.