IMPROVING THE ORGANIZATIONAL AND ECONOMIC MECHANISM OF FAMILY BUSINESS MANAGEMENT

Family enterprises represent an important organizational form of entrepreneurship and contribute to employment generation, income creation, innovation and regional economic development. However, the combination of family relationships and business objectives creates specific governance challenges related to decision-making, professionalization, succession, financial management and resource allocation. This study examines the organizational and economic mechanism of family enterprise management and develops an integrated framework for its improvement. The research is based on a systematic analysis of international literature on family governance, professionalization, agency and stewardship approaches, succession and dynamic capabilities. Particular attention is paid to the integration of family governance mechanisms, professional management, management accounting, digitalization and performance measurement. A methodological framework is proposed for assessing management efficiency using profitability, labor productivity, cost efficiency, digitalization, professionalization and succession-readiness indicators. The study argues that the effectiveness of family enterprises depends not only on the concentration of family ownership but also on the quality of governance mechanisms, professionalization and the ability to combine family-specific resources with modern management practices.