A Systems Perspective for Conceptualizing Sustainability in Long‐lived Family Businesses. Research Proposals on Risk Taking and Innovativeness

Abstract

Sustainability has been interpreted in family business research as the outcome of typical organizational dynamics, such as a moderate aversion to risk and a lack of intent to innovate. Drawing on the systems theory, this study identifies the key drivers for a broader conceptualization of sustainability for family businesses, based on the interplay of three interacting systems. A multiple case study research design involving companies belonging to Les Henokiens (an association of bicentenary family businesses) has been conducted in this systemic conceptualization. Unlike the assumptions presented in other research, our proposals suggest that fluctuating levels of risk taking and propensity to innovate may be a management response that occurs when the equilibrium of these interacting systems is in danger. This study's contribution is that it validates the systems theory as the leading theoretical perspective in family business research, which may help overcome 'management paradoxes' resulting from the overlap of conflicting systems.

Family Business - Sustainability Model

“…However, they can be very important for business sustainability. There is still an ongoing discussion about what is beneficial for sustainability (Vollero et al, 2019). Familiness appears to be connected with additional costs.…”

“…Many recently published papers strive to identify new aspects, which are crucial for sustainability, such as innovativeness or a risk-taking attitude. Some of them result in the claim that family businesses are very different among themselves so it cannot be easily measured as to whether it is crucially beneficial or not (Chua et al, 2012;Vollero et al, 2019). The goal is to propose a way to create a sustainable value that lasts for generations.…”

“…Source: Vollero et al (2019) Business sustainability has been defined as meeting current needs without compromising the ability of future generations to meet their own needs (WCED, 1987). Sustainability is naturally a question not only for a family business but to all forms of companies.…”

The Terms Foresters and Planners in the United States Use to Infer Sustainability in Forest Management Plans: A Survey Analysis

“…High (30)(31)(32)(33)(34)(35)(36)(37)(38)(39)(40)(41)(42)(43)(44)(45) think (long-term), maintain, (consider the) future, (be) capable or able Medium (10)(11)(12)(13)(14)(15)(16)(17)(18)(19)(20)(21)(22)(23)(24)(25)(26)(27)(28)(29) (meet) needs, provide, sustain, perpetuate, use, (ensure) quality…”

“…In recent decades, global and national natural resource management organizations, including the International Union of Forest Research Organizations, the Food and Agriculture Organization of the United Nations, the United States Forest Sustainability emerged in the late 20th century as a critical concept of policy debates [9] and today, the general concept of sustainability permeates many areas of science, management, and governance [10]. With respect to the general management of a business, sustainability can be viewed as a megatrend [11], often expressed in terms of the ability of an organization to endure and to produce goods and services for a long period of time [12]. In general, an organization that acts sustainably provides or uses resources related to human welfare that will be maintained or improved over time [11].…”