Family business goals, corporate citizenship behaviour and firm performance: disentangling the connections

Abstract

Prior research has suggested that family businesses may have a higher proclivity to behave as good corporate citizens, as compared with nonfamily firms, which may impact financial performance. However, while this idea is intuitively appealing, the actual antecedents of corporate citizenship behaviour in the family firm context have not yet been assessed systematically. In addition, empirical evidence regarding the impact of citizenship behaviour on firm performance remains inconclusive. Drawing from the literature on family business goals and corporate citizenship, our conceptual framework proposes that family-centred and business-centred goals act as determinants of Family business goals 35family firm citizenship, but each with a different impact. Furthermore, we argue that family firm reputation partially mediates the relationship between family firm citizenship behaviour and family firm performance. We discuss implications for family business research and practice and offer suggestions for future studies.

Family Firm Goals and their Effects on Strategy, Family and Organization Behavior: A Review and Research Agenda

“…A stronger role may enhance a family's organizational identity with the firm (discussed later), facilitating SEW goals such as community reputation, sustainability or control (Binz et al . ).…”

Founder-Controlled Family Firms, Overconfidence, and Corporate Social Responsibility Engagement: Evidence From Survey Data

“…Shedding light on the family control dimension of SEW, families want to maintain control over their business to protect their socioemotional endowment (e.g., Berrone et al, 2012;Cruz et al, 2014;Gómez-Mejía et al, 2007;Jones et al, 2008;Martin et al, 2016). The family's intention to exert control is considered to be one of the key determinants of the behavior of (FC)FFs (e.g., Astrachan Binz et al, 2017;Chrisman et al, 2012;Cruz et al, 2014;Gómez-Mejía et al, 2007), which is even used by scholars to define these companies (e.g., Chrisman et al, 2004;Chrisman et al, 2012;Chua et al, 1999), as only through control can families influence the firm's decisions (e.g., Astrachan Binz et al, 2017;Berrone et al, 2012;Chrisman et al, 2012) and pursue (other) family-centered nonfinancial goals (e.g., Berrone et al, 2012;Chrisman et al, 2012). Thus, families might engage in strategies that help them retain or even extend their influence and control over their business (Cruz et al, 2014).…”

Family Firms and Coupling among CSR Disclosures and Performance

“…This perspective of family firms suggests a more significant commitment to Corporate Social Responsibility (CSR) by favouring the transfer of the firm to future generations (Kim et al 2016;Binz et al 2017) and reinforcing the success and image of the company (Sharma and Sharma 2011). Although the literature is not unanimous, it can be argued that most of the time, but not always, they are socially and environmentally more responsible than other companies (i.e., Berrone et al 2010;Cennamo et al 2012;Cruz et al 2014;Campopiano et al 2014;Marques et al 2014;Cuadrado-Ballesteros et al 2015Martínez-Ferrero et al 2016;Feliu and Botero 2016;Samara and Berbegal-Mirabent 2018;García-Sánchez et al 2021a).…”