Family business ownership and cleaner production: Moderation by company size and family management

Abstract

Recent research suggests that the relationship between family business ownership and cleaner production is contingent. This article makes two contributions to this scientific literature. First, the authors conjecture that the relationship between family business ownership and cleaner production (measured by energy and water consumption, waste disposal and environmental performance of suppliers) is weaker for large firms than for small firms. Second, the authors surmise that the involvement of family members in management moderates the relationship between family business ownership and cleaner production in a non-linear rather than linear way. Based on a sample of 3,816 European companies, the authors find support for both hypotheses. The results imply that the difference in environmental performance between family owned and non-family owned enterprises is largest for small companies managed by a combination of family and non-family members.