Theory of the third: A cybernetic approach to escalative conflict dynamics in business families

Abstract This conceptual paper explores the surprising impact exerted by third elements on the escalation and de‐escalation of conflicts in business families. To this end, we draw on core concepts of Batesonian cybernetic theory to perform a reconceptualisation of pertinent literature on changing conflict dynamics gathered in family business research and consultancy. Based on this reconceptualisation, we identify explanations and key mechanisms for the impact of third elements on conflict dynamics. Our study thus contributes to research at the interface of family business research, conflict research and cybernetic theory development.