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When Does Family Ownership Promote Proactive Environmental Strategy? The Role of the Firm’s Long-Term Orientation

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  • Junsheng Dou

    (Zhejiang University)

  • Emma Su

    (Mississippi State University)

  • Song Wang

    (Zhejiang University)

Abstract

This research proposes an explanation for the conflicting extant evidence about whether family ownership of a business promotes proactive environmental strategy (PES). Based on insights drawn from strategic reference point theory, organizational identity theory, and the socioemotional wealth preservation perspective, we propose that family ownership has a moderated–mediated relationship with PES, with commitment as a moderator and long-term orientation as a mediator. A test using 454 China private firms with different levels of family ownership supports the hypotheses. This shows that PES as a strategy related to business ethics does not happen without commitment and long-term orientation.

Suggested Citation

  • Junsheng Dou & Emma Su & Song Wang, 2019. "When Does Family Ownership Promote Proactive Environmental Strategy? The Role of the Firm’s Long-Term Orientation," Journal of Business Ethics, Springer, vol. 158(1), pages 81-95, August.
    • Handle: RePEc:kap:jbuset:v:158:y:2019:i:1:d:10.1007_s10551-017-3642-z
    DOI: 10.1007/s10551-017-3642-z
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