Strategic Conflict Management and Digital Succession Readiness in South African Family Businesses: Developing a Sustainable Intergenerational Transition Framework

Abstract

Purpose

This study examines the impact of conflict management strategies on the digital succession readiness of family-owned businesses in South Africa. Its primary objective is to develop a sustainable intergenerational transition framework that promotes long-term business continuity and growth. The study addresses increasing challenges associated with intergenerational succession, governance weaknesses, and technological transformation in family businesses.

Methodology

A mixed-methods research approach was adopted, integrating quantitative and qualitative techniques. Data were collected through structured questionnaires and interviews with selected family-owned businesses in Gauteng, Western Cape, and KwaZulu-Natal provinces of South Africa. The collected data were analyzed using regression analysis, structural equation modelling (SEM), and thematic analysis.

Findings

The findings revealed a significant positive relationship between conflict management strategies and digital succession readiness. Communication management demonstrated the strongest positive influence, followed by conflict resolution strategies, governance mechanisms, and negotiation and collaboration. Furthermore, SEM results confirmed that effective conflict management contributes to digital succession readiness, which subsequently supports sustainable intergenerational transitions.

Conclusion

The study found that effective conflict management, communication, negotiation, and governance significantly improve the digital succession readiness of family-owned firms in South Africa. Managing intergenerational differences enables family businesses to adapt more effectively to technological changes and ensure successful succession. Weak governance and poor communication remain major challenges to sustainable intergenerational succession. The study recommends strengthening governance structures, communication, conflict resolution, digital skills, and succession planning through organizational and government support.