Exploring Leadership Experiences and Governance Practices in Family-Owned Businesses during Economic Uncertainty: An Interpretive Qualitative Study

Abstract

Family-owned businesses play a critical role in the global economy, but their leaders often face unique challenges during periods of economic uncertainty, particularly in balancing governance practices with long-term sustainability. While research on corporate governance in such businesses has expanded, there remains limited exploration of the subjective experiences of leaders in these contexts. The knowledge gap lies in understanding how family business leaders perceive and navigate these challenges, especially their decision-making processes under economic stress. Here we show that using an Interpretative Phenomenological Analysis (IPA) approach, this study explores the personal experiences of leaders in family-owned businesses, shedding light on their governance strategies during crises. Data were collected through in-depth interviews with 12 leaders, revealing that they rely on governance frameworks while aligning their decisions with personal values to maintain organizational stability and long-term growth. Three key themes emerged from the analysis: (1) adaptive governance rooted in family values, (2) relational trust as a mechanism for crisis management, and (3) strategic flexibility in balancing short-term survival with long-term sustainability. The findings demonstrate that leaders perceive economic uncertainty not only as a challenge but also as an opportunity for resilience, with strong governance practices acting as a key stabilizing force. These results contribute to a deeper understanding of leadership in times of crisis and highlight the importance of considering personal, subjective experiences in corporate governance research. Future studies can further explore the long-term impacts of such crises on leadership practices in family businesses.