Strategic Orientation of Mexican Family-owned Businesses and Its Influence on Corporate Social Responsibility Practices

José Luis Esparza Aguilar,José Luis Zapata Sánchez,María De Jesús Pérez Hervert,Argentina Soto Maciel

doi:10.15388/omee.2020.11.26

Abstract

The aim of this article was to determine whether the strategic orientation of family-owned businesses influences Corporate Social Responsibility (CSR) practices. For this purpose, a questionnaire was administered to a sample of 245 family-owned businesses in the southern part of the southeastern Mexican state of Quintana Roo. Variables attributed to CSR measurements were environment, society, employees, and customers, as well as business-level strategies of prospector, analyzer, defender, and reactor as defined by Miles and Snow. Results showed that family-owned businesses with a strategic orientation as prospector and analyzer have higher development levels of CSR practices, reactor businesses demonstrated lower development levels of CSR practices. Prospector and analyzer businesses tend to be product developers and innovators in their respective markets.

Highlights

In Mexico, regional development in the context of economic globalization and decentralization has been a priority
The following research question was formulated: Does the strategic orientation of the family-owned business influence the development of Corporate Social Responsibility (CSR) practices? The main objective of this work was to determine whether the strategic orientation significantly influences the practice of CSR developed by family-owned businesses in the southern part of the southeastern Mexican state of Quintana Roo
The results demonstrate that all of the CSR practices developed in this dimension had significant outcomes, except for the first practice, i.e., “takes into consideration employees’ interests in decision making”

Summary

Introduction

In Mexico, regional development in the context of economic globalization and decentralization has been a priority. In organizational analysis, the main research topics are focused on strategic planning and regional culture, considering both the internal environment and the dynamics of the local context In this perspective, the study of Corporate Social Responsibility (CSR) has acquired great relevance (Montaño, 2007). There are certain divergences in their behavior, mainly due to the interaction of the family, in aspects such as in the business itself, ownership, and management ( Jorissen, Laveren, Martens & Reheul, 2005; Chrisman, Chua & Sharma, 2005; Fitzgerald, Haynes, Schrank & Danes, 2010; Chrisman, Sharma, Steier & Chua, 2013; Esparza, García & Duréndez, 2016) Both internal and external particular characteristics generate different behaviors toward the development of CSR practices. This typology considers four categories: i) prospectors, ii) analyzers, iii) defenders, and iv) reactors

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Discussion

Conclusion