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A dynamic capabilities perspective to socially responsible family business: Implications on social-based advantage and market performance

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  • Leonidou, Leonidas C.
  • Eteokleous, Pantelitsa P.
  • Christodoulides, Paul
  • Strømfeldt Eduardsen, Jonas

Abstract

Despite the significant role played by family business firms in the economy, society, and environment of almost every country, there is limited knowledge as to their socially responsible conduct. This article presents the results of a study focusing on the drivers and outcomes of both internal and external CSR strategies adopted by these firms. Based on a sample of 193 family business firms in Cyprus, we confirm that certain dynamic capabilities, namely sensing, adaptive, and strategic flexibility, have a favorable effect on the development of both internal and external CSR strategy in family business. The implementation of these CSR strategies was also found to generate a social-based competitive advantage, which was conducive to heightened market performance. This impact of social-based advantage on market performance was revealed to be positively moderated by both competitive intensity and social public concern.

Suggested Citation

  • Leonidou, Leonidas C. & Eteokleous, Pantelitsa P. & Christodoulides, Paul & Strømfeldt Eduardsen, Jonas, 2023. "A dynamic capabilities perspective to socially responsible family business: Implications on social-based advantage and market performance," Journal of Business Research, Elsevier, vol. 155(PA).
    • Handle: RePEc:eee:jbrese:v:155:y:2023:i:pa:s0148296322008554
    DOI: 10.1016/j.jbusres.2022.113390
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