Family Offices as Relational Governance Mechanisms in Family Firms: A Systematic Literature Review

Abstract

Family firms represent the most dominant form of business organisation in the global economy, playing a central role in economic growth, job creation, and long-term wealth creation. Their importance extends beyond economic performance, as they are characterised by intergenerational continuity, socioemotional goals, and a long-term strategic orientation. Nevertheless, because family and business systems coexist within the same organisational structure, family firms are exposed to complex governance dynamics arising from the overlap between family relationships and business objectives. This overlap often generates divergent interests, coordination challenges, and conflicts in strategic decision-making among family members. Consequently, understanding governance mechanisms capable of improving cooperation, reducing conflict, and preserving long-term alignment has received increasing attention in family business and governance research. Within this context, family offices have emerged in the scientific literature as potential relational governance mechanisms that support not only wealth preservation and corporate management, but also broader relational governance functions within family business systems. Despite their growing practical relevance, the relational governance role of family offices remains relatively underexplored, particularly in contexts involving conflict, ownership complexity, succession challenges, and complex strategic choices. To address this gap, this study develops a systematic literature review focused on family firms, conflict dynamics, governance mechanisms, and family-office governance functions, with the objective of identifying key themes, conceptual relationships, and recent developments. Database searches conducted in Scopus and Web of Science identified 313 records. Following duplicate removal, screening, and analytical refinement, 47 studies were selected for the final thematic synthesis. The findings are organised around five interrelated themes: governance mechanisms as relational coordination structures; conflict and decision-making dynamics; behavioural dimensions of relational governance; succession, professionalisation, and continuity; and the emerging role of family offices in relational governance. The review indicates that the scientific literature converges around core topics such as governance mechanisms, agency-related tensions, trust and cooperation dynamics, conflict management, succession governance, strategic alignment, and long-term continuity. It contributes to family business, governance, and family-office research by positioning family offices as potential integrative governance coordination structures and by outlining future research directions in this emerging field.