Corporate governance and performance of family firms: Exploring the role of mixed board composition

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This research study examines how mixed board composition, family and non-family members serving together, affects the performance of family firms. While governance literature highlights the benefits of board diversity, evidence within family business contexts is mixed. Drawing on agency and stewardship theories, the study adopts a qualitative multiple case study approach of Italian and Spanish family firms. Data are collected through interviews, documents, and observations, and analyzed with grounded theory methods. Preliminary findings indicate that non-family directors enhance firm performance when relational trust and communication are established, but tensions may arise when cultural or generational divides persist. The study contributes to family business research by clarifying the role of governance dynamics in shaping strategic outcomes and provides practical insights for designing effective mixed boards.

Keywords: Family Firms, Corporate Governance, Board Composition, Agency Theory, Firm Performance

JEL Classification: G34, L26, M14

Received: 17.05.2025
Accepted: 26.05.2025

How to cite: Cantone, C. (2025). Corporate governance and performance of family firms: Exploring the role of mixed board composition. In A. M. Gallo, U. Comite, & A. Kostyuk (Eds.), Corporate governance: International outlook (pp. 12–16). Virtus Interpress. https://doi.org/10.22495/cgiop2