Board Governance and Strategic Renewal in Family Firms

Abstract

Family firms face a tension between continuity and renewal. Drawing on data from 120 mid-sized family businesses over a decade, we examine how board composition relates to the launch of new products and markets. Boards with independent members and structured succession planning were more likely to renew their strategy without losing family cohesion. Founder dominance on the board had the opposite effect. The results inform advice on governance reform for family enterprises and on the timing of leadership transitions.