Our governance systems are very weak. Family  run business run a tight ship because its their money  at stake. Non family  business are run by bureaucrats. Ther interest is always short term  - be it profitability/ share price or thier legacy.

a few years bac there was a story about outsider hired as CEO in a blore HQ billion dollar IT company, who used to fly to Mumbai every thursday/ Friday and comeback on Monday  morning, because his family  was based out of Mumbai.  The trip was paid by the company. 
The past  founder of this company usually gives a lot of Gyan about corporate governance and long working hours.

Non family  owned business treat  company money as thier personal piggy bank.

Consultant

Very true. Plus the founders know each other so they can still work together through thick and thin. Less incentive to leave, more to stay. More transparency too.

Interesting - Family onwned businesses have overperformed vs. non family owned businesses in Asia