Abstract:

The importance of corporate governance is growing due to globalization and the current changes in the business environment caused by the Covid 19 pandemic. The application of good corporate governance practices can prepare small businesses for future development. The purpose of this paper is to conduct a literature review of the value and use of family governance to highlight its most important aspects, develop mechanisms, and identify the elements of corporate governance that contribute to effective family business performance. Interaction between family administration properties can produce significant adaptability and competitive advantages. Our study concludes that the extent of family control and role of family CEO can significantly reduce the contribution of independent directors. Finally, we highlight topics that should be researched in the future to achieve family business sustainability.