Governance for Growth: How Corporate Structures Drive Performance in Family and Non-family Firms

This study investigates the impact of corporate governance structures on firm performance in Mexican family-owned and non-family businesses, emphasizing the comparative effectiveness of formal and informal governance mechanisms. Drawing on data from the “Best Mexican Companies” program, the research explores how specific governance features—such as boards of directors, audit committees, and ethics committees—affect organizational outcomes. The findings indicate that non-family firms, which tend to adopt more formalized governance structures, benefit from improved performance and scalability. In contrast, family firms, which often rely on less formal mechanisms, derive performance advantages when they incorporate professional governance practices such as external directors and structured boards. Ethics committees emerged as more prevalent in family firms, reflecting a focus on values and reputation. The analysis reveals that while both firm types benefit from governance, the mechanisms that drive performance differ significantly. A Chi-square test confirms a statistically significant relationship between governance structures and company type, highlighting the need for tailored governance strategies. This study contributes to the corporate governance literature by offering practical insights for optimizing governance in different ownership contexts, particularly within emerging markets like Mexico, where family businesses play a dominant economic role.