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The board of directors as a part of family business governance – multilevel participation and board development

Ikäheimonen, Tuuli (2014-11-07)

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Ikäheimonen_Väitöskirja_a4.pdf (1.614Mb)
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Väitöskirja

Ikäheimonen, Tuuli
07.11.2014
Lappeenranta University of Technology

Acta Universitatis Lappeenrantaensis

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Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-265-659-9

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In this study, I examine the board of directors as a part of family business governance. Both
boards and governance have increased their attractiveness as a research topic lately. Research
on boards has concentrated mostly on the study of different board attributes, like composition,
and the relationship of these attributes to the firm’s performance. Family business governance
studies are criticized for ignoring the multifaceted needs of companies. More research
observing the context and contingencies affecting the governance and board of directors
is needed.
The objective of this study is to clarify: 1) how the board participates in family business governance,
and 2) how the board develops along with the firm’s and family’s development. The
study is implemented as qualitative research, and the longitudinal process approach has been
used as it provides the opportunity to examine development in context. Selection criteria for
the two cases selected for this study are: active board of directors, at least one implemented
succession, and interviewees available from two generations and from different positions in
the firm. The data consists of interviews and secondary data, and it is collected from different
data sources. The analysis was done selecting first some critical events from both cases to
closer examination, and analysing them by using content analysis technique.
Several conclusions were drawn basing on the findings. First, the family business board participates
in the firm’s activities much more widely than it is customary to think. Second, the
family business board is not a static part of the business, but it develops and it has to develop
for different reasons. Third, ownership is not only the basis for the board’s activities or existence,
but the relationship between the board and ownership is two-way. The board contributes
to a large extent to the ownership decisions, and in this way to the management of ownership.
Fourth, according to the cases, the board has many unrecognized possibilities to facilitate
succession in family firms.
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  • Väitöskirjat [1123]
LUT-yliopisto
PL 20
53851 Lappeenranta
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