CEO leadership and board decision processes in family-controlled firms: comparing family and non-family CEOs

This study examines how the impact of board decision processes on board task performance, in family firms, changes contingent upon the presence of a family vs. a non-family CEO. Bridging insights from behavioral research on boards and the upper-echelon perspective, it suggests that each board decision process addresses specific cognitive problems. To the extent that family and non-family CEOs exhibit different cognitive frames, it hypothesizes that board processes will exert a different contribution to board task performance, depending on whether a family or a non-family CEO runs the business. The empirical analysis on a sample of Italian family firms provides support for hypothesized effects: use of knowledge and skills is more beneficial for board task performance under a non-family CEO; cognitive conflict is more beneficial under a family CEO. Contrary to expectations, the effects of effort norms do not change in the two settings. This study contributes to both research on boards and on family firms; opportunities for new advancements are discussed.