Strategic dynamics and corporate governance effectiveness in a family firm.

This paper employs a case-study approach to address linkages between corporate governance and a firm’s strategic dynamics. It investigates a family firm which moved from a state of crisis to a renewed growth and profitability stage to analyze how establishing appropriate governance practices may contribute to strategic renewal and value creation. Creating an effective system of corporate governance is a crucial task for all firms, requiring an appropriate balance between accountability and entrepreneurial dimensions to carry out the firm’s strategies. Data reveal how corporate governance variations over time may help a family firm to move through its organizational life cycle, by creating an appropriate fit with the evolving strategic needs.