Going greener, performing better? The case of private family firms
Bauweraerts, Jonathon, Arzubiaga, UnaiORCID: 0000-0001-9914-9881 and Diaz-Moiana, VanessaORCID: 0000-0002-6817-984X
(2022)
Going greener, performing better? The case of private family firms.
Research in International Business and Finance, 63
.
ISSN 0275-5319
In line with recent developments stressing the contextual sensitivity of the performance impli-
cations of sustainable development goals, this article explores the relationship between green
innovation adoption and performance in private family firms. Drawing on the upper echelons
theory, this research suggests that the influence of green innovation adoption on performance is
contingent upon two important family-firm specific sources of top management team (TMT) di-
versity: family involvement and generational involvement. Using a sample of 191 private family
firms, our results show that the positive impact of green innovation adoption on performance is
attenuated as the ratio of family members involved in the TMT increases. In contrast, a higher
number of generations involved in the TMT strengthens the positive relationship between green
innovation adoption and performance. Our findings contribute to the scarce literature on sus-
tainable development goals and green innovation in the family business context, stressing that the
type of family involvement in the TMT conditions the ability of private family firms to turn green
behaviors into performance gains.
Metadata
Item Type:
Article (Published)
Refereed:
Yes
Additional Information:
Article Number: 101784
Uncontrolled Keywords:
Family firms; Green innovation; Performance Top management team; Upper echelons