Corporate governance and family business: a perspective article

Abstract

Purpose The governance of family businesses has attracted considerable scrutiny among scholars and practitioners. This paper explores influences that have defined corporate governance practices in family firms in the last century and reflects on the possible direction of research and practice in the next century. Design/methodology/approach This manuscript undertakes a literature review of past and recent literature investigating corporate governance practices within family businesses. Findings The evolution of corporate governance in the family business literature is underpinned by centralised decision-making structures, the need to overcome fundamental corporate governance challenges, the increasing relevance of family governance models and the recognition and adoption of contemporary trends in the corporate governance space. The review also suggests that corporate governance and family business research in the next century will be dominated by technology-based governance, sustainable governance, globalisation and the validation for multi-board structures, greater attention to succession planning and diversity, and channelling significant resources to innovation. Originality/value The paper synthesises developments in the corporate governance–family business literature and proposes a future perspective.