Institutionalizing governance structures in family businesses

Using institutional theory this study explores how family businesses institutionalize their governance structures over time. Most studies dealing with governance mainly focus on one type of governance mechanism, namely, the Board of Directors (e.g. Zahra and Pearce, 1989; Corbetta and Salvato, 2004). Previous studies focused on the internal characteristics of the board of directors, or how the board influences performance. Recent studies have directed their attention to the top management team (e.g. Minichilli, et al., 2010; Nordqvist, 2005). Yet, research on family business governance has left unattended other governance structures and the time dimension in the evolution process of such structures. While understand many things about the governance structures' functioning and effect on performance, we do not understand the antecedents, this is how or why these structures are adopted. Our study is motivated by these gaps in the literature and explores family business governance from a holistic perspective, understanding how the executive committee, the board of directors, the family council, and the family constitution get institutionalized.