Competitive Advantage in Family Business Governance: The Role of Relational Contracting
Family business researchers present conflicting viewpoints regarding the performance implications of family business governance. One view takes a “stewardship” perspective arguing that increased interest alignment within family businesses decreases agency issues resulting in lower costs and higher performance. Recent research, however, has demonstrated that while unique, family businesses do experience significant “agency” issues. This manuscript addresses these conflicting views by examining the role of “relational governance” in family businesses. The application of relational governance can both address agency issues, and at the same time, explain the competitive advantage experienced by family businesses in relation to their governance structures.
Entrepreneurial and Small Business Operations
Allen, Matt, "Competitive Advantage in Family Business Governance: The Role of Relational Contracting" (2013). Babson Faculty Research Fund Working Papers. 144.