Abstract: The aim of this study is to examine the effects of conflict between family members and professional managers on the performance of professional managers in family-run businesses. The research was conducted on a sample consist of 199 family members and professional managers. Two significant findings emerged from the study. The first was that there is conflict between family members and professional managers in family-managed businesses. The second was that this conflict has an effect on the performance of professional managers. In particular, it was determined that non-conflicting situation had no significant effect on the task performance of professional managers, whereas it was concluded that there was a significant and positive effect on the contextual performance of professional managers. Findings of this study can make a contribution to be a guide for the relationships of top management and to make a positive effect to the behaviour of family members and professional managers in family businesses that have not established an institutional structure in Turkey.

Key Words: Family Business, Conflict, Task Performance, Contextual Performance.