A Weberian Perspective on Family Firms’ Corporate Governance: a Study of Multigeneration Firms

The purpose of this study is to enrich the study of corporate governance in Brazilian family firms by including Max Weber’s typology of legitimate authority as a source of analytical insight. We emphasize governance in family firms because of the perception that they are more likely to mix different authority types into their governance, particularly as they age. The major implication of this theoretical study is that rational-legal analysis, inherent in economic thought, needs to be complemented by an understanding of the dynamics regarding traditional and charismatic authorities, which are present (to some extent) in all organizations, but particularly in family firms. This new perspective may help the field transition from a strictly economic to a more hybrid perspective that includes sociological thought. Through this process, it can expand the capacity for comprehension, explanation, and intervention in the reality.