Abstract
We investigate how institutional environments in the founding phase influence the pro-environment activities of family businesses, and how origins shape present-day norms, routines and procedures through an imprint effect. By exploiting the unique heterogeneity of family business origin in China, we find that restructured family businesses have a higher degree of green innovation than their entrepreneurial counterparts. The mechanism analyses suggest that the initial institutions varied across family business origins, resulting in divergent institutional environments and distinguishing green innovation performances. Our results highlight the lasting effects of the early governance system on modern-day family businesses.
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