We explore the vexing question of whether family firms are more likely to survive than nonfamily firms, focusing on the role of board composition. Utilizing a unique data set of over 700,000 private family and nonfamily firms in the U.K. during 2007–2010, we find that family firms are significantly less likely to fail than nonfamily firms. We identify the board characteristics associated with survival/failure in all firms and determine that it is these characteristics that are important in explaining the lower failure probability of family firms. We conclude with an agenda for further research on boards and family firm survival.
- Loughborough University London
Published inEntrepreneurship Theory and Practice
Pages1369 - 1389
CitationWILSON, N., WRIGHT, M. and SCHOLES, L., 2013. Family business survival and the role of boards. Entrepreneurship Theory and Practice, 37 (6), pp. 1369 - 1389.
PublisherJohn Wiley & Sons, Inc. © Baylor University
VersionAM (Accepted Manuscript)
Publisher statementThis work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/
NotesThis is the peer reviewed version of the following article: WILSON, N., WRIGHT, M. and SCHOLES, L., 2013. Family business survival and the role of boards. Entrepreneurship Theory and Practice, 37 (6), pp. 1369 - 1389, which has been published in final form at http://dx.doi.org/10.1111/etap.12071. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.