This study focuses on the determinants of board composition in belgian small and medium-sized family firms. It extends the empirical literature on board composition in private small and medium-sized family enterprises by integrating several dimensions of the “family component” in the research model. Furthermore, using a multinomial logit model, we examine in which circumstances family firms opt for (1) a family board, (2) an inside board, or (3) an outside board. Results suggest that family-related contingency variables are far more important than ceo-related or control variables, giving support to the argument that board composition in family firms is a reflection of the family characteristics and objectives. Moreover, the results suggest that a resource dependence and added value perspective explain more of the variation in board composition than agency considerations.
van Gils, A. E. J., Voordeckers, W., & van den Heuvel, J. A. G. M. (2007). Board Composition in Small and Medium-Sized Family Firms. Journal of Small Business Management, 45(1), 137-156. https://doi.org/10.1111/j.1540-627X.2007.00204.x