Relational determinants of family governance mechanisms in private family businesses

Abstract

RESEARCH PURPOSE ❖ Family governance mechanisms (FGM) are crucial for the success and continuity of family firms (FF) ❖ No one-size-fits-all structure: formality, frequency & quantity according to family firm heterogeneity (FFH) ❖ Only 45% of FF have implemented FGM, of which only ±50% are satisfied, due to lack of specific guidance ❖ Strong family relationships → longevity & success → strained family relationships → conflict & frustration → negative performance implications ➔ FGM to strengthen these relations ❖ Although FGM focus on these relationships, few studies on soft, relational family dynamics as determinants of FGM as opposed to hard, quantitative antecedents → Why do family businesses decide to implement FGM on a relational level?