ABSTRACT
Dynasties frequently exhibit the following patterns. The adventurous spirit of the founder spawns a technological, organizational or market innovation. The idea of establishing a dynasty is remote at best during this stage. The governance structure is ad hoc and implicit, but keeps room for a personal vision of trying to get as big as possible. This chapter discusses research on the intersection of corporate governance and family businesses, as presenting an overview of the journey to mature dynasty. It has been argued that family firms do not require a special theory on their own since they behave as non-family firms. The only distinctive factor identified among many family firms is the dynastic motive, which makes many them unique and theoretically interesting, and qualifies them for a special theory. The founding of a family business is accompanied by the establishment of a direct line between the individual members, management, the boardroom and the political sphere.
