Sustainable Entrepreneurial Orientation in Family Firms

Abstract

This study examines how an entrepreneurial orientation moderates the effect of corporate social responsibility (CSR) on family firm performance. Analysis of 174 family firms was conducted using second-generation, partial least squares structural equation modeling (PLS-SEM) in SmartPLS 3.2.6. A survey of family firms and compliant sustainability reports, made under the rules of the GRI (Global Reporting Initiative) for these firms yielded the empirical data. This study contributes to the literature in several ways. First, the analysis shows that GRI reports offer a suitable way for analyzing CSR because the proposed measures are reliable and valid. Second, CSR actions by family firms exert a substantial positive influence on these firms' performance. Third, entrepreneurial orientation is a good predictor of the success of family firms, positively influencing their performance. Fourth, entrepreneurial orientation positively moderates the effect of CSR on family firm performance, enhancing this effect.

Sustainability Orientation and Entrepreneurship Orientation: Is There a Tradeoff Relationship between Them?

“…They explained that sustainability orientation alone has no effect on performance, but when entrepreneurial orientation is related, the effect on performance turns to be positive. Recent studies on sustainable entrepreneurial orientation have analyzed empirically that entrepreneurial orientation has a moderating effect on corporate social responsibility (CSR) and performance, indicating that sustainable firms must consider the entrepreneurial orientation into their business for success [13]. The study of Soto-Acosta et al [12], which analyzed the relationship between sustainable entrepreneurship and business performance, also showed that sustainability, such as environmental awareness, does not directly affect the performance of the company.…”

“…In the study of sustainable entrepreneurial orientation, it was shown that corporate social responsibility actions by a family firm has a positive effect on the firm performance, and thus entrepreneurial orientation is a good predictor of entrepreneurial success [13]. Sustainability orientation refers to the level of concern about the environmental protection and social responsibility of individuals, and consists of items that measure the underlying attitudes and personal traits on environmental protection and social responsibility [6].…”

Earnings Management and CSR Disclosure. Family vs. Non-Family Firms

“…We performed a content analysis, based on a list of 93 items, consistent with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines relevant topics and relative to stakeholder engagement, economic performance, environmental preservation, labor practices, human rights, society and product responsibility. As the literature suggests, GRI standards are a reference point for analyzing CSR [70]. We assigned a value of 1 if the item was disclosed and 0 otherwise.…”

The Sustainable Personality in Entrepreneurship: The Relationship between Big Six Personality, Entrepreneurial Self-Efficacy, and Entrepreneurial Intention in the Chinese Context

“…The study of Fellnhofer et al [107] found that the theme of economic developments was one of three central themes that were focused on in the field of sustainable entrepreneurship. In addition, Hernández-Perlines and Rung-Hoch [108] highlighted the important relationship between sustainable entrepreneurs and better economic growth. Therefore, the exploration of the relationship between sustainable personality and entrepreneurial intention deserves to be paid more attention.…”