A comprehensive theory of the firm has to consider both the governance and the development of the firm. We propose a integrative model of governance and  development. An empirical  analysis  of  a  public  association  with  both public and  private characteristics shows that these two processes influence each other. Our findings indicate that member influence implies a conservative development  of  the  firm.  On  the  other  hand,  the  emphasis  of  the  control function of the board creates a strong management position, which could imply a dynamic development. Thus, our  main conclusion about the association is that the governance relationship between the members and the management of the association influences the developmental capacity of the association.