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Origin matters: The institution imprint effect and green innovation in family businesses

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  • Cheng, Chen
  • Li, Siming
  • Liu, Shali
  • Zhang, Suge

Abstract

We investigate how institutional environments in the founding phase influence the pro-environment activities of family businesses, and how origins shape present-day norms, routines and procedures through an imprint effect. By exploiting the unique heterogeneity of family business origin in China, we find that restructured family businesses have a higher degree of green innovation than their entrepreneurial counterparts. The mechanism analyses suggest that the initial institutions varied across family business origins, resulting in divergent institutional environments and distinguishing green innovation performances. Our results highlight the lasting effects of the early governance system on modern-day family businesses.

Suggested Citation

  • Cheng, Chen & Li, Siming & Liu, Shali & Zhang, Suge, 2022. "Origin matters: The institution imprint effect and green innovation in family businesses," Finance Research Letters, Elsevier, vol. 50(C).
    • Handle: RePEc:eee:finlet:v:50:y:2022:i:c:s1544612322005037
    DOI: 10.1016/j.frl.2022.103324
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    Cited by:

    1. Kai Zhao & Wanshu Wu, 2022. "Innovation of Family-Owned Enterprises and Government Subsidies: From A Policy-Oriented Perspective," Sustainability, MDPI, vol. 14(20), pages 1-18, October.
    2. Xihui Chen & Juan Ou & Xuemei Tang & Qinghe Yang, 2023. "The Impact of Officials’ Off-Office Accountability Audit of Natural Resource Assets on Firms’ Green Innovation Strategies: A Quasi-Natural Experiment in China," Sustainability, MDPI, vol. 15(3), pages 1-36, February.
    3. Danting Cao & Yike Yu, 2023. "Top management team stability and enterprise innovation: A chairman's implicit human capital perspective," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2346-2365, June.

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    More about this item

    Keywords

    Family business origin; Green innovation; Institution environment;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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