The Impact of Integrated Agency-Stewardship Governance Structures in Family Firms

Studies abound investigating whether agency or stewardship theory is more predictive of family firm behavior and performance. Rather than this dichotomous approach, our research investigates the integration of agency and stewardship theories. Our research model intertwines agency and stewardship perspectives, making predictions within, across, and in the integration of theories. Primary data collected from family firm leaders, family employees, and nonfamily employees were analyzed in matched triads representing 77 family firms. Results demonstrate that agency and stewardship structures separately increase firm performance, but that structural integration is more beneficial on the behavior within and the performance of the family firm.