Improving strategic decision-making processes of family firm SMEs: enlarging the extent of joint strategic decision-making by the board- TMT team (R-10790)

In this research project, we focus on strategic decision-making processes of small and medium-sized family firms. High quality of strategic decisions is crucial for the long-term success of these firms. We posit that the quality of these decisions can be improved by creating a partnership between the top management team and the board of directors. More concrete, we examine how and to what extent top management teams and boards jointly interact by functioning as a 'supra-team' in strategic decision-making processes. In order to benefit from this newly formed team, it is important to consider several important aspects within this project. First, we examine diversity effects within the team as it has a crucial influence on team outcomes. Second, we emphasize the importance of integration and teamwork within the supra-team as well as the role of the supra-team leader within the decision-making processes. Third, we investigate the black box of family firm financial performance by taking a strategic partnership perspective as determinant. Overall, the results of this research project might unravel the complexity of strategic decision-making processes and behaviors in private family firms with a broader picture of the important role of both top management team and board within the strategy of these firms.

Keywords:Board of directors, Family firms, Strategic Decision Making, TMT

Disciplines:Business management, Strategic management