Corporate Social Responsibility in Family Firms: Status and Future Directions of a Research Field

This systematic literature review contributes to the increasing interest regarding corporate social responsibility (CSR) in family firms-a research field that has developed considerably in the last few years. It now provides the opportunity to take a holistic view on the relationship dynamics-i.e., drivers, activities, outcomes, and contextual influences-of family firms with CSR, thus enabling a more coherent organization of current research and a sounder understanding of the phenomenon. To conceptualize the research field, we analyzed 122 peer-reviewed articles published in highly ranked journals identifying the main issues examined. The results clearly show a lack of research regarding CSR outcomes in family firms. Although considered increasingly crucial in family firm research, a study investigating family outcomes (e.g., family community status, family emotional well-being), as opposed to firm outcomes, is missing. This literature review outlines the current state of research and contributes to the actual debate on CSR in family firms by discussing how family firms can use CSR activities as strategic management tools. Moreover, our analysis shows a black box indicating how CSR links different antecedents and outcomes. The black box is significant since firms generally need to know where to allocate their scarce resources to generate the best outcomes. We identify nine research questions based on these findings, which we hope will inspire future research.

Clearing the fog: How circular economy transition can be measured at the company level

How far has the transition process to a circular economy progressed? How can this transition process be promoted? So far, the indicators used to analyse such questions have mostly been based on aggregate recycling rates or waste volumes. However, circular economy is much more than that. This paper develops a concept for empirically measuring the transition process along a company's value chain. The concept distinguishes 27 business activities that are relevant for the circular economy and thus enables detailed statements about the transition to the circular economy along the entire value chain and the three dimensions of the circular economy, i.e. efficiency, closing the resource loop and extending product life. Based on this concept, a representative survey of 8,000 Swiss companies was conducted. The data allow - for the first time and for a representative sample - the analysis of the determinants of the transition process to a circular economy using econometric estimations. The results suggest that the transition process has just started; most companies involved in circular economy activities focus on efficiency enhancing measures rather than on extending the life of products/services or closing the loop. In addition, the results show that circular economy pioneers are characterized by a willingness to invest a significant amount of available capital in the breadth of circular activities, have greater financial flexibility, and in some cases face greater non-price competition. Ultimately, the results suggest that the transition to a circular economy can only be successful if the necessary framework conditions are set in such a way that it is profitable for the company to significantly increase the degree of circularity.

Environmental Pollution Liability Insurance of Health Risk and Corporate Environmental Performance: Evidence From China

Environmental pollution liability insurance (EPLI) is a type of insurance purchased by an enterprise to compensate the loss of the victims in the event of an environmental pollution incident. Although EPLI can realize the post-treatment of environmental pollution to a certain extent, there is still less understanding of whether EPLI can improve the environmental performance of enterprises. This study takes A-share listed companies in heavily polluting industries as the research object, determines the treatment group samples according to the Insurance coverage list published by the Ministry of Environmental Protection in 2014 and 2015, and then constructs the empirical test model. In order to ensure that there is no sample selection bias, the PSM method is used to preprocess the samples in this study to ensure the robustness of the conclusions. The empirical tests show that EPLI can significantly improve corporate environmental performance. Further analysis showed that higher public visibility is conducive to the positive environmental effects of EPLI. Compared with state-owned enterprises, non-state-owned enterprises have more significant implementation effects after introducing EPLI. On further examination, the result indicates that environmental pollution liability insurance can improve environmental performance by alleviating corporate financing constraints. The findings of this paper enrich the theory of the economic impact of environmental pollution liability insurance, which has some meaningful theoretical guidance for enterprises and policy makers.

Implementing Sustainable Development Concept: A Typology of Family Firms in Poland

For companies, sustainable development generally represents a long-term business orientation towards social, economic and environmental well-being. The concept has gained momentum among researchers partly due to the necessity of finding a modern approach to business development that does not deprive the next generation of the opportunity to meet its own needs. Based on a sample of 333 Polish family firms, three groups of businesses were isolated (via k-means clustering) on the basis of low, medium and high deployment of pro-sustainability initiatives. This paper aims to investigate whether family firms demonstrating divergent levels of sustainable development express between-group differences. Measuring diversity using ANOVA with post hoc testing produced results associating business growth and higher levels of family involvement (e.g., via increased participation of family members from different generations in firm management) with the increased absorption of sustainable solutions and actions. These findings support notions from social identity theory suggesting that groups significantly shape the individual identities of their members. This means that family members inclined to implement sustainable development initiatives are likely to stimulate each other to introduce particular solutions and actions in praxis.

Exploration and explication of the nature of online reviews of organizational corporate social responsibility initiatives

Purpose

The purpose of this paper is to comprehend the nature of online reviews received on various social networking sites and internet-based platforms regrading organizational corporate social responsibility (CSR) initiatives.

Design/methodology/approach

Given the novelty of this field, a qualitative exploratory research study was carried out. For this research, 28 Indian CSR experts on online CSR reviews were interviewed with a semi-structured open-ended questionnaire for data collection. Thematic and relational content analysis was applied for data analysis. The data was analysed based upon the theoretical anchors of micro foundations approach, organizational egoism (reputational and economic) concept and organizational logic (instrumental and integrative) literature and stakeholder salience.

Findings

The study analysis indicated that online CSR reviews that organizations received on various social networking sites and internet-based platforms from different individual and institutional stakeholders were complaints, appreciations, observations and recommendations in nature. Online CSR reviews appreciated more of integrative organizational logic than instrumental organizational logic. CSR reviews present on online platforms valued organizational reputational egoism more than organizational economic egoism. The salience of stakeholders was getting redefines in Web 2.0 based online CSR reviews. Finally, micro foundations approach was becoming a more potent perspective in the CSR narrative.

Research limitations/implications

This research study was anchored in the micro foundations approach of CSR (Hafenbrädl and Waeger, 2017). This study ascertained those individuals did matter in organizational CSR narrative (Maak et al., 2016). Furthermore, how firms were evaluated through online reviews based upon organizational egoism (reputational and economic) (Casali, 2011; Casali and Day, 2015) and organizational logic (instrumental and integrative) (Seele and Lock, 2015; Liu, 2013; Gao and Bansal, 2013; Bansal and Song, 2017) was studied. Finally, in the world of online reviews, the notion of salient stakeholders (Mitchell et al., 2011; Magness, 2008) was getting redefined, and this aspect was also covered in this research study.

Practical implications

Firms have been engaging in CSR initiatives towards provision of social benefits and community engagement. Regarding firm CSR initiatives, CSR managers traditionally used to receive feedback from the stakeholders based upon written and special surveys conducted post or during the late stages of CSR engagement. The advent and ubiquitous presence of digital mobile devices and Web 2.0-enabled internet connections altered the way firms received feedback. This was because increasingly online reviews were received from stakeholders on firm CSR web pages, social networking sites and other online spaces. Many of the online CSR reviews were regarding the compliments and achievements that the CSR initiatives had achieved. However, a significant portion of online CSR reviews were regarding the complaints regarding the CSR initiatives. Online CSR reviews received from an array of stakeholders are inputs for firm managers. Online CSR reviews are thus an asset for an organization. Managers need to develop capabilities towards applying this asset for the expressed purposed. These online CSR reviews could be used as inputs to draw new CSR initiatives, redefine extant CSR initiatives. Furthermore, these online CSR reviews could be used as inputs to alter the organizational resources, capabilities, competencies and process regarding CSR initiatives.

Originality/value

This was one of the first studies that integrated the theoretical aspects of salient stakeholders, organizational logic, organizational egoism through the lens of micro foundations approach in the context of organizational CSR initiatives. To the best of the author’s knowledge, this was indeed a novel contribution, as the same was explored and explicated based upon online CSR reviews on internet-based platforms.

Management research contributions to the COVID-19: a bibliometric literature review and analysis of the contributions from the Journal of Management & Organization

The COVID-19 health crisis triggered changes in the workplace. This paper explores the insights from scholarly work published in the Journal of Management and Organization (JMO) and systematizes this body of knowledge to build a scientific overview that looks at how the COVID-19 health crisis and its repercussions may be managed by organizations. We conducted a bibliometric investigation of JMO's most influential papers published from 1995 to June 2020 that offers insights into the management of the COVID-19 crisis. Our bibliometric investigation reveals six clusters: (1) conservation of resources theory, entrepreneurs, gender and work–family conflict; (2) corporate governance, corporate social responsibility and stakeholder salience; (3) family firms, innovation and research methods; (4) creativity, leadership and organizational change; (5) job satisfaction and psychological empowerment; and (6) team performance. We discuss the theoretical and practical implications of our findings.

Hybrid Approach to Corporate Sustainability Performance in Indonesia’s Cement Industry

This study aimed to create a solid framework for decision-making in Indonesia’s cement industry, emphasizing those factors which bring about the most impactful results. The framework was developed using the fuzzy Delphi method, the fuzzy decision-making trial and evaluation laboratory, and a fuzzy Kano model. This study builds a hierarchical structure to approach the impact of corporate sustainability performance. We classify important factors into causes or effects and further identify those factors which are critical to improving the performance of Indonesia’s cement industry. Although corporate sustainability performance is a crucial topic in today’s business environment, sustainability strategies remain underrated in Indonesia. We confirm the validity of 19 factors within the following dimensions: environmental impact, social sustainability, economic gain, technological feasibility, and institutional compliance. The sub-dimensions of community interest, risk-taking ability, and regulatory compliance were identified as causes of perceived risks and benefits. In contrast, the following factors were identified as critical to improving corporate sustainability performance: renewable energy resources, contributions to charity, the perception of management regarding technology as a differentiator, and firm readiness to collaborate with high-tech companies.

Implementation of Circular Economy Technologies: An Empirical Study of Slovak and Slovenian Manufacturing Companies

Circular Economy (CE) practices and technologies are essential for increasing sustainability performance in manufacturing. Due to the increasing number of environmental regulations and growing public awareness of environmental issues, especially in the EU, CE is increasingly seen as a valuable factor in improving competitiveness. Therefore, there is a need for a fuller understanding of the ways in which CE technologies can be implemented into the manufacturing industries. The aim of this paper is to contribute to the identification of the characteristics of manufacturing companies and their perceptions of the barriers to the adoption of CE technologies. This survey-based study of 241 manufacturing companies (comprising a sub-sample of Slovak and Slovenian companies from the more extensive European Manufacturing Survey) uses a series of statistical tests to examine the implementation of three CE technologies. The results show that there is significant relationship between the adoption of CE technologies in manufacturing companies and their size, location, R&D activities, company age and product batch size. Finally, the research reveals the surprising finding that there is no apparent link between the perception of CE barriers and the plans of companies to implement selected CE technologies.

Does it pay more to be green in family firms than in non-family firms?

The contradictory empirical evidence about whether the effect of companies' environmental investments on financial results is positive, negative or not significant has been explained by the different conditions and contexts that facilitate or hinder the ability to generate a win–win situation. This explanation has gradually led the academic debate to consider the factors and conditions that moderate such a relationship. In this document, we analyse the relevant but scarcely studied moderating effect of the condition of being a family firm, by integrating the socioemotional wealth (SEW) perspective into the natural-resource-based view (NRBV). Based on the analysis of panel data from 2936 Spanish manufacturing firms, covering the period 2009–2016, we offer empirical evidence showing that the financial benefits derived from environmental investment are positive and significant in family firms, while this is not so in non-family firms. Furthermore, our results show that intrinsic characteristics such as the sector, size or age of the company also condition the financial results of environmental investments.

Environmental and Social Goals in Spanish SMEs: The Moderating Effect of Family Influence

Small and medium-sized enterprises (SMEs) are the predominant form of firm in the economy worldwide, so it is becoming increasingly important to understand the role they play in the green transition. It is urgent to understand how SMEs establish their goals that reorient their strategies and activities towards the creation of greater environmental value. From a stakeholder perspective, this study analyzes the environmental and social goals that create value in SMEs. We identify family influence as an important determinant for the establishment of environmental goals in SMEs that has not been sufficiently studied. We tested the hypotheses in a sample of 132 Spanish SMEs. Our findings indicate that setting social goals and having family characteristics have a direct positive effect on the environmental goals of SMEs. In addition, family influence positively moderates the effect of social goals, increasing its effect in the establishment of environmental goals for the creation of value in SMEs. This is due to the desire of family SMEs to increase their socio-emotional wealth and their transgenerational intention by incorporating the requirements of stakeholders. These findings highlight the importance of particularly considering the family characteristics of SMEs when analyzing the role that SMEs play in the green transition and should also be important for policy makers when designing environmental policies.

Green Innovation Practices and Its Impacts on Environmental and Organizational Performance

This study aims to investigate the impact of stakeholders’ views on the practices of green innovation (GI), consequent effect on environmental and organizational performance (OP), and moderating influence of innovation orientation. A quantitative method was employed for the sample size of 515 responses. To accumulate the data from the respondents, convenient random sampling was used. Data were collected from manufacturing and services firms through a field survey by using a closed-ended questionnaire based in the Punjab province of Pakistan. The analysis was done using the structural equation model of the partial least square analysis method. Our findings proved a positive and significant link between stakeholders’ views on GI practices. A significant association has been found between GI practices and environmental and OP. The moderating effect was found to be negative but statistically significant. This research offers numerous contributions and provides decision-making insinuations.

Family Ownership and Corporate Environmental Responsibility: The Contingent Effect of Venture Capital and Institutional Environment

As scholars and policy makers pay more attention to the environmental impact of economic activities, more focus has been placed on the corporate environmental responsibility (CER) of family firms, which accounts for the majority of businesses in both developed and developing countries. Using a sample of 4714 private enterprises across 23 provinces in China, the current study examines the effect of family ownership on CER investment, as well as the moderating effects of venture capital investment and local institutional development. Results show that concentrated family ownership leads to lower CER spending, however, when venture capital investment comes from developed markets, the negative relationship is reversed. In addition, the marketization level of the province in which a family firm is headquartered mitigates the negative relationship between family ownership and CER investment.

Family influences in the internationalization of the top 1,000 Taiwanese enterprises

Purpose

This paper aims to investigate the moderating effects of employee commitment, customer loyalty and corporate reputation on the relationship between family influence and international expansion.

Design/methodology/approach

A cross-national research design was conducted using both survey and secondary data of 119 firms taken from the top 1,000 Taiwanese enterprises.

Findings

This study found moderating effects in the positive impact of family influence on international expansion. Specifically, the study found the relationship between family influence and international expansion stronger for companies with greater relational support from employees, customers and the public.

Research limitations/implications

Multi-level data collection and a longitudinal research design in future research could help in further understanding the relationships between the variables in this study.

Practical implications

This paper suggests that family business should establish enduring relationship with their employees and customers and have a plan to improve family reputation that will benefit international market expansion.

Originality/value

This study draws on the relational perspective to investigate how family influence results in different international expansion.

Ownership and corporate social responsibility in Indian firms

Purpose

The purpose of this paper is to look at the association between different ownership categories and corporate social responsibility (CSR) spending of selected Indian firms.

Design/methodology/approach

Random-effects Tobit panel regression is performed on a panel of 4,388 firm years of 1,722 unique firms over a three-year period (2014-2016).

Findings

Different categories of institutional investors have different preferences for CSR spending of a firm. Promoters of business-group affiliated and unaffiliated firms also behave differently towards CSR activities of their firms.

Research limitations/implications

Heterogeneous behavior of institutional investors is revealed through the study. Foreign institutions and domestic banks are supportive of CSR investments of a firm. Promoters of family firms and group affiliates also diligently plan CSR activities.

Practical implications

Managers cannot ignore the heterogeneities of institutional investors in their investment decisions. Individual investors can align their philanthropic preferences with those of different types of institutional investors or firms.

Social implications

Family-owned firms play a significant role in CSR activities of emerging economies, while individual promoters are not as attracted by the reputational prospects of CSR.

Originality/value

This paper considers the role of heterogeneities of institutional investors in influencing CSR spending of emerging-economy firms. This heterogeneity has not been previously studied in this context.

Research on innovation in family businesses: are we building an ivory tower?

Purpose

One of the central requirements of research is that the knowledge acquired should not only be academically rigorous, but also socially useful. If an article fails to address practical relevance, the audience will question its value and respond with “so what?”. Due to recent criticism regarding the practical relevance of innovation research, the purpose of this paper is to examine whether a similar “ivory divide” prevails in research on innovation in family businesses. More specifically, this paper investigates to what extent and at what depth researchers generate practical implications for innovation in family businesses. Furthermore, different strategies to bridge the “ivory divide” are discussed.

Design/methodology/approach

This literature review systematically analyses the findings of 50 journal articles focusing on innovation in family businesses published between 2004 and 2015. Based on this, the articles are classified according to their degree of practical relevance.

Findings

Although the findings unanimously show the relevance of innovation for strengthening business’s performance, only a minority of articles offer in-depth implications for practitioners in terms of practical guidance for action and application-oriented recommendations. A number of reasons for the development of this “ivory divide” are discussed and suggestions for how the connection between research and practice could be strengthened are provided.

Originality/value

This paper attempts to provide an impulse toward more practically oriented family business research in order to increase its interestingness to academics and its value to practitioners.

The effect of internal factors and family influence on firms’ adoption of green product innovation

Purpose

Little research has been conducted on the internal factors that drive green product (GP) innovation and how family influence affects firm adoption of GP innovation. This study aims to apply multiple perspectives to bridge this research gap, adopting the resource-based view (RBV) to examine what and how internal factors affect firm adoption of GP innovation, and using the behavioral theory of family firms to investigate whether family influence fosters or hinders firm adoption of GP innovation.

Design/methodology/approach

This study used a multichannel approach and adopted content analysis to collect and evaluate data on listed Taiwanese firms and used cross-sectional regression analysis to examine the effect of internal factors and family influence on firm adoption of GP innovation.

Findings

The results showed that the internal factors of green capabilities, R&D intensity and firm size significantly and positively affected firm adoption of GP innovation separately. Furthermore, the study found that family influence (ownership and control) significantly and negatively affects firm adoption of GP innovation separately.

Research limitations/implications

This study contributes to the academic research of innovation management, green management and family firms in several aspects, but also has some limitations. This study examined only the relationship between a firm’s internal factors and GP innovation. Future research might test the relationship between a firm’s internal factors and adoption of green process innovation. In addition, such research can explore how integrated internal and external factors influence firm adoption of GP innovation.

Practical implications

From the RBV, the internal factors of green capabilities, R&D intensity and firm size that can exert crucial effects on firm engage in firm’s adoption of GP innovation. This study suggests that top managers in family-influenced businesses should maintain appropriate commitment and support for fostering and facilitating firm GP innovation.

Social implications

From the RBV, this study examined how internal factors affect firm adoption of GP innovation. Moreover, based on the behavioral theory of family firms, this study further examined how family influence (ownership and control) affects firm adoption of GP innovation. This paper extended both perspectives to examine green issues.

Originality/value

From the RBV, this study examined how internal factors affect firms’ GP innovation. Moreover, based on institutional theory, this study further examines how a family firm moderates the relationship between a firm’s internal factors and GP innovation. The paper extended both perspectives to probe further the green issues.

Proactive environmental management and performance by a controlling family

Purpose

– This study examined how proactive environmental management affects firm performance and whether a controlling family moderates this effect. The paper aims to discuss these issues.

Design/methodology/approach

– The study adopted content analysis to collect data on listed Taiwanese firms and used cross-sectional regression analysis to examine the relationship between proactive environmental management and firm performance as well as the moderating role of a controlling family.

Findings

– The results indicated that not all types of proactive environmental management are positively associated with firm performance and that a controlling family might be more effective in low-risk proactive environmental management practices.

Research limitations/implications

– The focus was on the impact of proactive environmental management from the perspective of stockholders. Future research could investigate its impact on other stakeholders as well.

Practical implications

– The findings might convince managers that the stereotype of an environment-friendly firm – that the more its green initiatives, the less competitive it becomes – may not necessarily be true. Investing in product-focused pollution prevention could increase revenues and improve performance. Even though process-focused pollution prevention is negatively associated with firm performance, companies are not expected to reduce investment in green processes since they are required for the production of environment-friendly products.

Originality/value

– This study adopted a multi-dimensional approach to reveal how different types of proactive environmental management affect firm performance. The authors used the controlling family as a moderating variable to determine whether it moderates the relationship between proactive environmental management and firm performance.