Changes in family composition and their impact on family business

Changes in family composition are one of the most critical aspects in influencing and operating family firms. Marriages, divorces, births, intergenerational successions, and deaths are some of the events that inevitably have an impact not only on interpersonal relationships within the family but also on the structure and decision-making of the firm. It is important to note that these changes can have positive impacts by acting as stimulants of innovation and resilience, but at the same time, they can also generate threats and tensions that affect the stability of the company. The objective of this study is to examine the impact of the different changes in family composition, on the governance, business resilience, performance and strategic adaptability of family firms. Additionally, this thesis aims to address the following research questions: How do shifts in family structures influence leadership and governance in family businesses?. This analysis contributes to academic research on family business management by highlighting the value of adaptability, leadership, and the influence of innovation in reducing conflict and managing decision-making. It also offers family business owners and members useful advice on how to manage the intersection of family dynamics and business strategy and ensure sustainable growth in an evolving global economy. Furthermore, the research emphasizes the broader implications for policymaking and institutional support to safeguard these vital economic entities.