CORPORATE BOARD COMPOSITION IN FAMILY BUSINESSES: EVIDENCE FROM THE CZECH REPUBLIC

This paper examines the issue of board composition of family businesses which were established in the Czech Republic in the 1990s, after more than 40 years of private enterprises being forcefidly suspended by the socialist regime. So far, there has been no available research investigating manufacturing sector in the Czech Republic (CR) from the perspective of board composition, i.e. the representation of external members and gender diversity, on the characteristic behaviours of the boards of family businesses and their strategic adaptability. This longitudinal study of four family businesses provides valuable information which have not yet been observed against the background of board composition in the manufacturing sector. The results of the interviews conducted in these businesses yield interesting findings about the fact that gender diversity along with the exclusive representation of family members on a corporate board has a very positive influence on strategic adaptability and an impact on the current direction of the business. The results of the study also show haw family businesses fulfilling these conditions are better able to cope with negative external influences (e.g. the financial crisis).