Family governance practices in young and small family firms and their effect on business family and firm resilience

Purpose This study aims to examine the impact of family governance practices (FGPs) in young and small family firms (FFs) on the business family (a family system), and on FF resilience (a firm system). Design/methodology/approach Regression models were estimated to test the hypotheses using a sample of 200 young and small FFs. Findings The study shows that the presence of FGPs is positively correlated with the their utility in the context of building the family members' relationships with the firm, enhancing knowledge among members of the business family, engaging the business family in the business, and sharing the business family's resources with the FF. However, these positive effects do not extend to enhancing business resilience, suggesting important boundary conditions for the role of FGPs. Originality/value This study challenges the commonly assumed positive link between FGPs and firm resilience and extends research on the role of such practices in young and small FFs.