The Impact of Board of Directors Structure on the EFQM Process in Family Businesses

Abstract

The purpose of this research is to examine the impact of board structure on the EFQM (European Foundation for Quality Management) process in family businesses. The activity reports of 180 family-owned joint stock companies affiliated with the Kütahya Chamber of Commerce were subjected to content analysis. EFQM scores (leadership, implementation, results) were included as dependent variables; board structure (CEO duality, proportion of female members, board size, proportion of executive members) as independent variables; and company age, sector, and ownership structure as control variables in the model. For the EFQM measurement, the 119-item Excellence-Oriented Internal Analysis Model, adapted into Turkish by the Quality Association, was used. Each statement was given 1 point, and average scores were calculated. Regression analyses revealed that the board structure has a significant effect on the EFQM process in family businesses, and in particular, CEO duality, proportion of female members, proportion of executive members, and board size positively affect the EFQM dimensions.