Abstract:
The relevance of family influence in business decisions has been widely acknowledged in management studies. This study aims to investigate how family ownership affects a firm's orientation toward environmental sustainability by analyzing their distinct characteristics and potential impact on corporate environmental strategies. Drawing upon agency theory and resource-based view, we examine whether family ownership can lead to more environmentally sustainable practices by assessing its influence on firms' environmental orientations (eco-orientation and techno-orientation) and how these orientations influence environmental performance.
To achieve this objective, we utilize panel data encompassing various companies and industries over multiple years, allowing us to control for unobserved heterogeneity and capture dynamic relationships between variables. The empirical analysis delves into the moderating effects of specific family ownership attributes, such as family ownership concentration and family involvement in management, to gain a comprehensive understanding of the varying influence of family involvement in shaping firms' environmental strategies.
Our findings shed light on the complex interplay between family ownership, environmental orientations, and environmental performance, providing valuable insights for stakeholders seeking to promote sustainable business practices. The outcomes contribute to the ongoing discourse on the role of family enterprises in fostering corporate social responsibility and environmental sustainability, offering practical implications for policymakers, business leaders, and investors seeking to promote sustainable development and create a greener economy.
Keywords: Family ownership, environmental sustainability, corporate environmental strategy, eco-orientation, techno-orientation, environmental performance, agency theory, resource-based view.
