Governance in Family Firms

Governance in family firms refers to the systems and practices that guide how a family-owned business is directed and controlled. It involves establishing clear roles and responsibilities for family members and non-family stakeholders, ensuring transparency, and managing conflicts. Effective governance helps maintain the balance between family dynamics and professional management, fostering sustainable growth and long-term success. This framework can include formal practices like boards or advisory committees, as well as informal traditions and values that shape decision-making processes within the family business context.