The Workplace Social Performance of Family Firms: A Configurational Approach

Abstract

Comparative research on family versus non-family firms´ workplace social performance has produced mixed results. Consequently, several calls have been made to account for family business heterogeneity to understand better how family involvement in the business affects the workplace social performance of family firms. Using qualitative comparative analysis, we respond to these calls by exploring the governance antecedents that can lead family firms to increase their workplace social performance. We find two governance configurations that lead to better family business internal social performance. The first configuration is the combination of 100% family ownership, high family involvement in management, and a mix of outside directors and family members on the board. The second configuration is the combination of less than 100% family ownership and low family involvement in management. Theoretical and practical implications are discussed at the end of the paper.