Bridge and Buffer: Evidence of the Role of the Board of Directors in Family Firms

Abstract

In this paper we investigate the roles that boards of directors play in family firms by conducting a series of interviews with board members from various Italian family firms. Applying Grounded Theory methodology, our results suggest that in addition to performing the service and control functions characteristic of boards of directors in non-family firms, family firm boards perform two functions unique to family firms: i.e, they act as a bridge between the various family business components and as a buffer between conflicting members. Our study makes two contributions. First, by suggesting that family business boards play bridge and buffer roles, we fill the gap in previous literature which has examined the roles of boards of directors without considering the idiosyncratic nature of family- owned businesses. Second, we offer an overview of the variability in board roles across different forms of family business.