Why Moroccan family firms resist formal governance: informal governance logics and conflict regulation

Abstract

This study aims to examine why family firms resist formal governance mechanisms and how informal governance operates as a system of conflict regulation. A qualitative study based on semi-structured interviews with ten Moroccan family firms was conducted. Data were analyzed using an inductive approach inspired by the Gioia methodology. Informal governance emerges as a coherent system of coordination grounded in relational norms, hierarchical authority and shared values. Rather than eliminating conflict, it regulates its expression by containing tensions, relying on authority-based resolution and limiting open confrontation. Resistance to formal governance reflects a deliberate effort to preserve relational cohesion and socioemotional wealth. The study reconceptualizes governance as a mechanism of conflict regulation and challenges the assumption that formal governance is universally superior, highlighting the role of institutional and relational embeddedness.