This study investigates the practice of governance in small firms and shows differences between these firms in the principality of Liechtenstein and Scotland. Thereby, the study's intention is to draw particular attention to the influence of corporate governance on the firm's ability to change. Thus a broader scope of corporate governance, which is normally discussed from a control perspective, is taken. Using data from semi-structured interviews with 20 managing directors of small firms, the findings showed that they see corporate governance more as a concept for managing the internal and external relationships with the various stakeholders than as a control concept. The study provides fresh insights into the practice of governance in small firms and offers the opportunity to expand our understanding of the topic in different parts of the world. Moreover, by taking a qualitative research approach, the study addresses recent calls concerning more methodological diversity. Copyright © 2014 Inderscience Enterprises Ltd.