This study applies a social identity and social network theory perspective to develop an integrated view of how hospitality firms incorporate family dynamics and tourism specifics as antecedents for good governance in the competitive hospitality industry. Seventeen qualitative semi-structured expert interviews with family hotel owner-managers in the province of Salzburg, Austria are systematically analyzed. The findings highlight the firms’ commitment to their destination as well as regional and social interactions originating both in the family dynamics of the firms and their strong embeddedness within their destinations as central factors for good governance. The results emphasize the need for entrepreneurial behavior and the involvement of family and non-family members in achieving effective governance structures.