Who are the best performers? The environmental social performance of family firms

Abstract

Despite that family businesses are a group of heterogeneous companies with different levels of family involvement in the business, research has given little attention to these important contingencies when discussing family business environmental social performance. Building on the socioemotional wealth (SEW) framework and using qualitative comparative analysis, we explore optimal configurations of governance antecedents that can catalyze the environmental social performance of family firms across Anglo-Saxon and non-Anglo-Saxon countries. Findings reveal two governance configurations that, regardless of the institutional setting, can catalyze the environmental social performance of family firms: 1) the combination of 100% family ownership, first generation leadership, high family presence on the board, and low family involvement in management; and 2) the combination of 100% family ownership, first generation leadership, high family involvement in management, and the presence of outside directors on the board. Specific configurations for non-Anglo-Saxon countries are also identified. Theoretical and practical implications are discussed.