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Chapter 2
DOI: 10.4018/978-1-7998-6669-5.ch002
ABSTRACT
Corporate governance is a signifcant tool to build strong and long relationships
among various stakeholders in kinds of business organizations. Family businesses
are not an exception to this. Like any other businesses, family businesses also need to
have governance in place and practice to achieve the business strategies and to have
long-term succession. Family-owned businesses are the backbone of many countries’
economies in the world contributing substantial portion of GDP. Considering these,
it is important to know the best practices of governance in family owned business
organizations and the role played by governance to improve the strengths of these
businesses. The chapter throws light on family business governance and explores
various important practices highlighting their advantages and disadvantages in detail.
INTRODUCTION
Family business have unique capacities to fuel economic growth and these businesses
have always nurtured entrepreneurial talent across generations to have long-term
strategic commitment and independence. Family businesses contribute in social and
environmental development, incessantly create new jobs, and provide better quality
of life for citizens. Family businesses are the most long lived business entities and
they are agile and resilient.
Family Business Governance
Reena Agrawal
Jaipuria Institute of Management, Lucknow, India
Ganga Bhavani
Amity University, India