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The Romanian Family Businesses Philosophy for Performance and Sustainability

Author

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  • Camelia-Daniela Hategan

    (Department of Accounting and Audit, Faculty of Economics and Business Administration, West University of Timisoara, 16 Pestalozzi Street, 300115 Timisoara, Romania)

  • Ruxandra-Ioana Curea-Pitorac

    (Department of Economics and Modeling, Faculty of Economics and Business Administration, West University of Timisoara, 16 Pestalozzi Street, 300115 Timisoara, Romania)

  • Vasile-Petru Hategan

    (Institute for Social and Political Research, Faculty of Political Sciences, Philosophy and Communication Studies, West University of Timisoara, 4 V. Parvan Blvd, 300223 Timisoara, Romania)

Abstract

Family businesses represent a large segment of private companies and contribute greatly to economic growth. In this context, the objectives of this paper are to identify the characteristics of Romanian family businesses, starting from their involvement and governance mechanisms, and also to investigate if these specific items allow them to act towards creating sustainable businesses. In order to achieve these objectives, we have used qualitative and quantitative research, consisting of two phases: (a) we have analyzed the reports regarding the Romanian family businesses, in order to identify their characteristics; and (b) we have empirically tested if the characteristics are correlated with company financial performance and social responsibility. The results show that Romanian family businesses are aware of the changes that may appear and that they have started to implement internal processes oriented towards sustainability. Also, the main family involvements in business were ownership, governance, management and succession, which have a correlation with the performance of their company.

Suggested Citation

  • Camelia-Daniela Hategan & Ruxandra-Ioana Curea-Pitorac & Vasile-Petru Hategan, 2019. "The Romanian Family Businesses Philosophy for Performance and Sustainability," Sustainability, MDPI, vol. 11(6), pages 1-22, March.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:6:p:1715-:d:215932
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    References listed on IDEAS

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    Cited by:

    1. Xiaolin Li & Weian Li & Yaowei Zhang, 2020. "Family Control, Political Connection, and Corporate Green Governance," Sustainability, MDPI, vol. 12(17), pages 1-18, August.
    2. Vladislav ROTARU & Laurentiu MIHAI & Radu OGARCA, 2020. "SUCCESION MANAGEMENT IN ROMANIAN SMEs," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(2), pages 135-150, November.
    3. Camelia-Daniela Hategan & Ruxandra-Ioana Pitorac & Nicoleta-Daniela Milu, 2021. "Assessment of the Mandatory Non-Financial Reporting of Romanian Companies in the Circular Economy Context," IJERPH, MDPI, vol. 18(24), pages 1-17, December.
    4. Yanan Li, 2022. "The Influence of Family Governance on the Value of Chinese Family Businesses: Signal Transmission Effect of Financial Performance," Economies, MDPI, vol. 10(3), pages 1-22, March.
    5. Camelia-Daniela Hategan & Ruxandra-Ioana Curea-Pitorac & Vasile-Petru Hategan, 2020. "Responsible Communication of Romanian Companies for Ensuring Public Health in a COVID-19 Pandemic Context," IJERPH, MDPI, vol. 17(22), pages 1-16, November.
    6. Adriana Cioca & Kassam Wehbe & Delia Popescu & Constanta Popescu, 2020. "The Main Drivers for Sustainable Decisions in a Family Business That Impact the Company’s Performance," Sustainability, MDPI, vol. 12(20), pages 1-14, October.
    7. Iman Harymawan & Mohammad Nasih & Muhammad Madyan & Diarany Sucahyati, 2019. "The Role of Political Connections on Family Firms’ Performance: Evidence from Indonesia," IJFS, MDPI, vol. 7(4), pages 1-14, September.

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