This study examines how board ownership shapes board processes in family firms. The extant family firm research has extensively adopted an input–output approach to the study of boards, but results have been inconclusive, calling for further research on intervening processes. By examining board ownership, this study shows that board processes are shaped by the life cycles of family firms across generations, as reflected in ownership dispersion among family directors: Cognitive conflict is the highest and the use of knowledge and skills is the lowest when the levels of balance in a board’s voting power are moderate, which occurs when the board mostly mirrors a sibling partnership. A discussion of this study’s findings contributes to the literature on family firm boards, work groups, and corporate governance.
Small Business Economics – Springer Journals
Published: May 27, 2014
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