Who should sit there? Effects of family-oriented objectives on board composition. (2017)

• Record Type: Journal Article
• Authors: Basco, Rodrigo; CalabrÁ², Andrea
• Is Part Of: International journal of entrepreneurial venturing. Volume 9:Number 1(2017)
• Page Start: 81
• Page End: 99
• Publication Date: 2017
• Subjects: board of directors -- board composition -- socioemotional wealth -- stewardship theory -- family-oriented objectives -- family firm goals -- family business -- family firms -- family board members -- corporate governance; Entrepreneurship -- Periodicals; Business enterprises -- Periodicals; 658.42105
• Languages: English
• ISSNs: 1742-5360

Abstract

The aim of this article is to shed new light on the antecedent of board composition in family firms. By integrating socioemotional wealth and stewardship theory, we hypothesise that family-oriented objectives not only affect the traditional dichotomous classification (family vs. non-family board members) but also the inner composition among family board members (e.g., family board members working in the firm vs. family board members not working in the firm). Our main findings suggest that the stronger the importance of family-oriented objectives, the greater the presence of family members on boards of directors. Furthermore, for high levels of family-oriented objectives, where steward-oriented behaviours prevail, the sub-group of family board members on the board will be mainly composed of family board members working in the firm.