Sustainability and Business Outcomes in the Context of SMEs: Comparing Family Firms vs. Non-Family Firms

María López-Pérez,Jesús Cambra-Fierro,Rosario Vázquez-Carrasco,Iguácel Melero-Polo

doi:10.3390/su10114080

María López-Pérez, Jesús Cambra-Fierro + Show 2 more

Open Access

https://doi.org/10.3390/su10114080

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Abstract

Society is demanding more sustainable and socially responsible business models. Therefore, the concept of sustainability has become a cornerstone to help understand the success of many firms in the current competitive context. However, the context of SMEs has received little attention thus far. In order to solve this gap this article analyses the links between sustainability practices and business outcomes—both financial and non-financial (i.e., image and reputation)—for small and medium-size enterprises (SMEs). In addition, the study strives to analyze the potential differences between family firms and non-family firms. To this end, a quantitative study is carried out using PLS techniques to analyze a sample of SME owners and managers with a view to testing the proposed model based on the Stewardship Theory and Socioemotional Wealth Theory. In this sense, our study is pioneering in that it aims to assess—from a quantitative viewpoint—the moderator role of family firms on a series of relevant sustainability-driven outcomes. The data suggest that, in SME contexts, sustainability influences the corporate reputation, brand image, and financial value of the company. Importantly, we find that the profile (family vs. non-family) of the firm moderates the links between sustainability and business outcomes. Hence, our findings have important implications for sustainability implementation in SME contexts. Finally, we provide a series of guidelines aimed at maximizing the effectiveness of sustainability-based business practices.

Highlights

Sustainable management and development is considered a central idea in business and society today [1]
Having confirmed the lack of empirical research that examines these concepts within the context of small and medium-size enterprises (SMEs), and in line with the proposals of authors such as Russo and Tencati [6] and Ellerup and Thomsen [20], this article aimed to first assess the extent to which corporate social responsibility (CSR) can influence a series of important assets for the business management of SMEs
This research analyzes the effect of the firm structure on the relationships between CSR, reputation, and financial value of the firms in the context of SMEs

Summary

Introduction

Sustainable management and development is considered a central idea in business and society today [1]. This is because society and stakeholders are more demanding in terms of transparency and sustainability. Firms must legitimize their activities and concepts such as corporate social responsibility (CSR) may help managers to promote successful business models. In this sense, Schmidt et al [2] have recently commented that practices of sustainability, including the values and transparency, internal audience, environment, supplier relationships, customer and/or consumer relationships, and community relationships contribute to reinforce the firms’ positioning. As the United Nations recognizes, transparency of business conduct has long been a driving force of improvement and will remain critical as stakeholders across the world continue to advance the shared goals of the 2030 Agenda for Sustainable Development

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