IDEAS home Printed from https://ideas.repec.org/a/eee/fambus/v3y2012i1p28-37.html
   My bibliography  Save this article

Balancing natural environmental concerns of internal and external stakeholders in family and non-family businesses

Author

Listed:
  • Neubaum, Donald O.
  • Dibrell, Clay
  • Craig, Justin B.

Abstract

While researches have long suggested that firms must be attentive to their key stakeholders, the question of how attention to different stakeholders may have different benefits for different firms has not been well addressed. This is especially true in the case of family businesses, which confront a unique set of stakeholder challenges, and socioemotional goals not confronted by non-family firms. In this study, we investigate the effect of these competing demands across family and non-family firms. We argue that while being attentive to both internal and external stakeholders is important to firm performance in family and non-family firms, family firms can benefit more when they match their concern for natural environmental stakeholders with a demonstration of concern for their employees. By effectively leveraging the power of these critical internal stakeholders, family firms can gain competitive advantages over non-family firms as it is through these internal stakeholders which the demands of external stakeholder are often met.

Suggested Citation

  • Neubaum, Donald O. & Dibrell, Clay & Craig, Justin B., 2012. "Balancing natural environmental concerns of internal and external stakeholders in family and non-family businesses," Journal of Family Business Strategy, Elsevier, vol. 3(1), pages 28-37.
    • Handle: RePEc:eee:fambus:v:3:y:2012:i:1:p:28-37
    DOI: 10.1016/j.jfbs.2012.01.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1877858512000046
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jfbs.2012.01.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John Bingham & W. Gibb Dyer & Isaac Smith & Gregory Adams, 2011. "A Stakeholder Identity Orientation Approach to Corporate Social Performance in Family Firms," Journal of Business Ethics, Springer, vol. 99(4), pages 565-585, April.
    2. Jay B. Barney & Mark H. Hansen, 1994. "Trustworthiness as a Source of Competitive Advantage," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 175-190, December.
    3. Gregory G. Dess & Richard B. Robinson, 1984. "Measuring organizational performance in the absence of objective measures: The case of the privately‐held firm and conglomerate business unit," Strategic Management Journal, Wiley Blackwell, vol. 5(3), pages 265-273, July.
    4. Sieger, Philipp & Bernhard, Fabian & Frey, Urs, 2011. "Affective commitment and job satisfaction among non-family employees: Investigating the roles of justice perceptions and psychological ownership," Journal of Family Business Strategy, Elsevier, vol. 2(2), pages 78-89, June.
    5. Michael D. Ensley & Allison W. Pearson, 2005. "An Exploratory Comparison of the Behavioral Dynamics of Top Management Teams in Family and Nonfamily New Ventures: Cohesion, Conflict, Potency, and Consensus," Entrepreneurship Theory and Practice, , vol. 29(3), pages 267-284, May.
    6. David G. Sirmon & Michael A. Hitt, 2003. "Managing Resources: Linking Unique Resources, Management, and Wealth Creation in Family Firms," Entrepreneurship Theory and Practice, , vol. 27(4), pages 339-358, October.
    7. Pramodita Sharma & S. Manikutty, 2005. "Strategic Divestments in Family Firms: Role of Family Structure and Community Culture," Entrepreneurship Theory and Practice, , vol. 29(3), pages 293-311, May.
    8. Shaker A. Zahra & James C. Hayton & Donald O. Neubaum & Clay Dibrell & Justin Craig, 2008. "Culture of Family Commitment and Strategic Flexibility: The Moderating Effect of Stewardship," Entrepreneurship Theory and Practice, , vol. 32(6), pages 1035-1054, November.
    9. Ricky Y. K. Chan, 2005. "Does the Natural‐Resource‐Based View of the Firm Apply in an Emerging Economy? A Survey of Foreign Invested Enterprises in China," Journal of Management Studies, Wiley Blackwell, vol. 42(3), pages 625-672, May.
    10. Yu-Shan Chen, 2008. "The Positive Effect of Green Intellectual Capital on Competitive Advantages of Firms," Journal of Business Ethics, Springer, vol. 77(3), pages 271-286, February.
    11. Cabrera-Suárez, M. Katiuska & de la Cruz Déniz-Déniz, Mª & Martín-Santana, Josefa D., 2011. "Familiness and market orientation: A stakeholder approach," Journal of Family Business Strategy, Elsevier, vol. 2(1), pages 34-42, March.
    12. Forest Reinhardt, 1999. "Market Failure and the Environmental Policies of Firms: Economic Rationales for “Beyond Compliance” Behavior," Journal of Industrial Ecology, Yale University, vol. 3(1), pages 9-21, January.
    13. Astrachan, Joseph H., 2010. "Strategy in family business: Toward a multidimensional research agenda," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 6-14, March.
    14. Jeffrey S. Harrison & Douglas A. Bosse & Robert A. Phillips, 2010. "Managing for stakeholders, stakeholder utility functions, and competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 31(1), pages 58-74, January.
    15. Paul Shrivastava, 1995. "Environmental technologies and competitive advantage," Strategic Management Journal, Wiley Blackwell, vol. 16(S1), pages 183-200.
    16. Aldrich, Howard E. & Cliff, Jennifer E., 2003. "The pervasive effects of family on entrepreneurship: toward a family embeddedness perspective," Journal of Business Venturing, Elsevier, vol. 18(5), pages 573-596, September.
    17. Eleni Stavrou & George Kassinis & Alexis Filotheou, 2007. "Downsizing and Stakeholder Orientation Among the Fortune 500: Does Family Ownership Matter?," Journal of Business Ethics, Springer, vol. 72(2), pages 149-162, May.
    18. Alfred A. Marcus & Marc H. Anderson, 2006. "A General Dynamic Capability: Does it Propagate Business and Social Competencies in the Retail Food Industry?," Journal of Management Studies, Wiley Blackwell, vol. 43(1), pages 19-46, January.
    19. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    20. Robert E. Quinn & John Rohrbaugh, 1983. "A Spatial Model of Effectiveness Criteria: Towards a Competing Values Approach to Organizational Analysis," Management Science, INFORMS, vol. 29(3), pages 363-377, March.
    21. Henriques, Irene & Sadorsky, Perry, 1996. "The Determinants of an Environmentally Responsive Firm: An Empirical Approach," Journal of Environmental Economics and Management, Elsevier, vol. 30(3), pages 381-395, May.
    22. González-Benito, Javier & González-Benito, Óscar, 2005. "Environmental proactivity and business performance: an empirical analysis," Omega, Elsevier, vol. 33(1), pages 1-15, February.
    23. James J. Chrisman & Jess H. Chua & Lloyd Steier, 2005. "Sources and Consequences of Distinctive Familiness: An Introduction," Entrepreneurship Theory and Practice, , vol. 29(3), pages 237-247, May.
    24. Banerjee, Subhabrata Bobby, 2002. "Corporate environmentalism: the construct and its measurement," Journal of Business Research, Elsevier, vol. 55(3), pages 177-191, March.
    25. Reginald A. Litz, 1997. "The Family Firm's Exclusion from Business School Research: Explaining the Void; Addressing the Opportunity," Entrepreneurship Theory and Practice, , vol. 21(3), pages 55-71, April.
    26. Dibrell, Clay & Moeller, Miriam, 2011. "The impact of a service-dominant focus strategy and stewardship culture on organizational innovativeness in family-owned businesses," Journal of Family Business Strategy, Elsevier, vol. 2(1), pages 43-51, March.
    27. Amy J. Hillman & Gerald D. Keim, 2001. "Shareholder value, stakeholder management, and social issues: what's the bottom line?," Strategic Management Journal, Wiley Blackwell, vol. 22(2), pages 125-139, February.
    28. Robert D. Klassen & Curtis P. McLaughlin, 1996. "The Impact of Environmental Management on Firm Performance," Management Science, INFORMS, vol. 42(8), pages 1199-1214, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dawson, Alexandra & Mussolino, Donata, 2014. "Exploring what makes family firms different: Discrete or overlapping constructs in the literature?," Journal of Family Business Strategy, Elsevier, vol. 5(2), pages 169-183.
    2. Heino, Noora & Tuominen, Pasi & Jussila, Iiro, 2020. "Listed Family Firm Stakeholder Orientations: The Critical Role of Value-creating Family Factors," Journal of Family Business Strategy, Elsevier, vol. 11(4).
    3. Sherlock, Chelsea & Dibrell, Clay & Memili, Esra, 2023. "The impact of family commitment on firm innovativeness: The mediating role of resource stocks," Journal of Family Business Strategy, Elsevier, vol. 14(3).
    4. Unai Arzubiaga & Amaia Maseda & Txomin Iturralde, 2019. "Exploratory and exploitative innovation in family businesses: the moderating role of the family firm image and family involvement in top management," Review of Managerial Science, Springer, vol. 13(1), pages 1-31, February.
    5. Pittino, Daniel & Visintin, Francesca & Lenger, Tamara & Sternad, Dietmar, 2016. "Are high performance work practices really necessary in family SMEs? An analysis of the impact on employee retention," Journal of Family Business Strategy, Elsevier, vol. 7(2), pages 75-89.
    6. Della Piana, Bice & Vecchi, Alessandra & Cacia, Claudia, 2012. "Towards a better understanding of Family Business Groups and their key dimensions," Journal of Family Business Strategy, Elsevier, vol. 3(3), pages 174-192.
    7. Franck Brulhart & Sandrine Gherra & Bertrand V. Quelin, 2019. "Do Stakeholder Orientation and Environmental Proactivity Impact Firm Profitability?," Journal of Business Ethics, Springer, vol. 158(1), pages 25-46, August.
    8. Joern H. Block & Marcus Wagner, 2014. "The Effect of Family Ownership on Different Dimensions of Corporate Social Responsibility: Evidence from Large US Firms," Business Strategy and the Environment, Wiley Blackwell, vol. 23(7), pages 475-492, November.
    9. Rosa Maria Dangelico & Pierpaolo Pontrandolfo, 2015. "Being ‘Green and Competitive’: The Impact of Environmental Actions and Collaborations on Firm Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 24(6), pages 413-430, September.
    10. Duréndez, Antonio & Madrid-Guijarro, Antonia, 2018. "The impact of family influence on financial reporting quality in small and medium family firms," Journal of Family Business Strategy, Elsevier, vol. 9(3), pages 205-218.
    11. Pieper, Torsten M., 2010. "Non solus: Toward a psychology of family business," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 26-39, March.
    12. Ismael Barros-Contreras & Héctor Pérez-Fernández & Natalia Martín-Cruz & Juan Hernangómez B., 2023. "Can we make family social capital flourish? The moderating role of generational involvement," Journal of Family and Economic Issues, Springer, vol. 44(3), pages 655-673, September.
    13. McGuire, Jean & Dow, Sandra & Ibrahim, Bakr, 2012. "All in the family? Social performance and corporate governance in the family firm," Journal of Business Research, Elsevier, vol. 65(11), pages 1643-1650.
    14. Astrachan, Joseph H., 2010. "Strategy in family business: Toward a multidimensional research agenda," Journal of Family Business Strategy, Elsevier, vol. 1(1), pages 6-14, March.
    15. Albert Czerny & Peter Letmathe, 2017. "Eco‐efficiency: GHG reduction related environmental and economic performance. The case of the companies participating in the EU Emissions Trading Scheme," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 791-806, September.
    16. Andreas Strobl & Kurt Matzler & Bright Adu Nketia & Viktoria Veider, 2020. "Individual innovation behavior and firm-level exploration and exploitation: how family firms make the most of their managers," Review of Managerial Science, Springer, vol. 14(4), pages 809-844, August.
    17. Vanessa Weimann & Maike Gerken & Marcel Hülsbeck, 2021. "Old flames never die – the role of binding social ties for corporate entrepreneurship in family firms," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1707-1730, December.
    18. Nuttaneeya Torugsa & Wayne O’Donohue & Rob Hecker, 2013. "Proactive CSR: An Empirical Analysis of the Role of its Economic, Social and Environmental Dimensions on the Association between Capabilities and Performance," Journal of Business Ethics, Springer, vol. 115(2), pages 383-402, June.
    19. Mª de la Cruz Déniz-Déniz & Mª Katiuska Cabrera-Suárez & Josefa D. Martín-Santana, 2020. "Orientation Toward Key Non-family Stakeholders and Economic Performance in Family Firms: The Role of Family Identification with the Firm," Journal of Business Ethics, Springer, vol. 163(2), pages 329-345, May.
    20. Papadas, Karolos-Konstantinos & Avlonitis, George J. & Carrigan, Marylyn & Piha, Lamprini, 2019. "The interplay of strategic and internal green marketing orientation on competitive advantage," Journal of Business Research, Elsevier, vol. 104(C), pages 632-643.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:fambus:v:3:y:2012:i:1:p:28-37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/719791/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.