Sustainability practices of family firms
Sustainability practices of family firmsIvan Miroshnychenko - Alfredo De Massis
Objectives. Sustainability practices are a key instrument in a global economy facing the climate change challenge. This study examines whether family firms differ from their nonfamily counterparts in terms of sustainability practices.
Methodology. Univariate and multivariate analyses are performed on the sample of 2032 publicly traded firms from 45 countries and 19 industrial sectors over the period 2007-2014.
Findings. Family firms on average have weaker pollution prevention, green supply chain management and green product development practices than nonfamily firms. Our results remain unchanged after correcting for endogeneity of family ownership, using alternative model specifications and variable definitions.
Research limits. This study is based on the secondary data sources covering only publicly traded firms.
Practical implications. Owners, managers and advisors of family firms should consider improving the sustainability pillar of corporate strategy to be not left behind by the competition and to also start to excel environmentally. This study also provides novel empirical support for policymakers encouraging enforcement of environmental policies and regulations for family firms around the globe.
Originality of the study. It provides unambiguous insights on the family influence on sustainability practices over time in cross-industry and cross-country settings serving as a point of departure for future research aiming to#environmental practices #family firms #sustainability practices