IDEAS home Printed from https://ideas.repec.org/a/spr/jbecon/v93y2023i3d10.1007_s11573-022-01113-9.html
   My bibliography  Save this article

Family oblige: the link between CSR and succession intention in small and medium family firms

Author

Listed:
  • Andrea Stübner

    (Technical University of Munich)

  • Svenja Jarchow

    (Technical University of Munich)

Abstract

This study investigates how family continuation, namely family tradition and succession intention, alter the socially responsible behavior of small and medium sized (SME) family firms. Using a unique dataset, we have conducted multiple regressions on survey data from German family SMEs and show a statistically and economically significant increase in Corporate Social Responsibility (CSR) alongside the planning of family succession. However, when analyzing the different facets of CSR, we have found strong variances: While succession intention goes along with an increased community, market, and supply chain engagement this is not the case for CSR directed towards employees, or the environment. Family tradition didn’t correlate with a change in CSR behaviour to a relevant extent. In our theoretical embedding we employed socio-emotional wealth (SEW) theory to explain our findings. Thereby, our study fills a gap in the literature adding the perspective of SME family firms on the use of CSR in the context of family succession and also adding to the theoretical understanding of SEW.

Suggested Citation

  • Andrea Stübner & Svenja Jarchow, 2023. "Family oblige: the link between CSR and succession intention in small and medium family firms," Journal of Business Economics, Springer, vol. 93(3), pages 389-431, April.
    • Handle: RePEc:spr:jbecon:v:93:y:2023:i:3:d:10.1007_s11573-022-01113-9
    DOI: 10.1007/s11573-022-01113-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11573-022-01113-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11573-022-01113-9?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. Hauck, Jana & Suess-Reyes, Julia & Beck, Susanne & Prügl, Reinhard & Frank, Hermann, 2016. "Measuring socioemotional wealth in family-owned and -managed firms: A validation and short form of the FIBER Scale," Journal of Family Business Strategy, Elsevier, vol. 7(3), pages 133-148.
    2. Isabelle Maignan & David A Ralston, 2002. "Corporate Social Responsibility in Europe and the U.S.: Insights from Businesses' Self-presentations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 497-514, September.
    3. Michael Carney, 2005. "Corporate Governance and Competitive Advantage in Family–Controlled Firms," Entrepreneurship Theory and Practice, , vol. 29(3), pages 249-265, May.
    4. 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.
    5. Carmelo Cennamo & Pascual Berrone & Cristina Cruz & Luis R. Gomez–Mejia, 2012. "Socioemotional Wealth and Proactive Stakeholder Engagement: Why Family–Controlled Firms Care More about their Stakeholders," Entrepreneurship Theory and Practice, , vol. 36(6), pages 1153-1173, November.
    6. Maria Santos, 2011. "CSR in SMEs: strategies, practices, motivations and obstacles," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 7(3), pages 490-508, August.
    7. William S. Schulze & Franz W. Kellermanns, 2015. "Reifying Socioemotional Wealth," Entrepreneurship Theory and Practice, , vol. 39(3), pages 447-459, May.
    8. James M. Vardaman & Maria B. Gondo, 2014. "Socioemotional Wealth Conflict in Family Firms," Entrepreneurship Theory and Practice, , vol. 38(6), pages 1317-1322, November.
    9. Eleni T. Stavrou & Paul Michael Swiercz, 1998. "Securing the Future of the Family Enterprise: A Model of Offspring Intentions to Join the Business," Entrepreneurship Theory and Practice, , vol. 23(2), pages 19-40, December.
    10. Piotr Zientara, 2017. "Socioemotional Wealth and Corporate Social Responsibility: A Critical Analysis," Journal of Business Ethics, Springer, vol. 144(1), pages 185-199, August.
    11. James J. Chrisman & Pramodita Sharma & Lloyd P. Steier & Jess H. Chua, 2013. "The Influence of Family Goals, Governance, and Resources on Firm Outcomes," Entrepreneurship Theory and Practice, , vol. 37(6), pages 1249-1261, November.
    12. Dorothée Baumann-Pauly & Christopher Wickert & Laura Spence & Andreas Scherer, 2013. "Organizing Corporate Social Responsibility in Small and Large Firms: Size Matters," Journal of Business Ethics, Springer, vol. 115(4), pages 693-705, July.
    13. Réal Labelle & Taïeb Hafsi & Claude Francoeur & Walid Ben Amar, 2018. "Family Firms’ Corporate Social Performance: A Calculated Quest for Socioemotional Wealth," Journal of Business Ethics, Springer, vol. 148(3), pages 511-525, March.
    14. Jan Lepoutre & Aimé Heene, 2006. "Investigating the Impact of Firm Size on Small Business Social Responsibility: A Critical Review," Journal of Business Ethics, Springer, vol. 67(3), pages 257-273, September.
    15. Caroline D. Ditlev‐Simonsen & Atle Midttun, 2011. "What motivates managers to pursue corporate responsibility? a survey among key stakeholders," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(1), pages 25-38, January.
    16. 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.
    17. Madden, Laura & McMillan, Amy & Harris, Oneil, 2020. "Drivers of selectivity in family firms: Understanding the impact of age and ownership on CSR," Journal of Family Business Strategy, Elsevier, vol. 11(2).
    18. Pan, Yue & Weng, Ruoyu & Xu, Nianhang & Chan, Kam C., 2018. "The role of corporate philanthropy in family firm succession: A social outreach perspective," Journal of Banking & Finance, Elsevier, vol. 88(C), pages 423-441.
    19. Graafland, J.J. & Ven van de, B. & Stoffele, N., 2003. "Strategies and instruments for organising CSR by small and large businesses in the Netherlands," MPRA Paper 20754, University Library of Munich, Germany.
    20. Olivier Meier & Guillaume Schier, 2021. "CSR and Family CEO: The Moderating Role of CEO’s Age," Journal of Business Ethics, Springer, vol. 174(3), pages 595-612, December.
    21. Ven van de, B. & Graafland, J.J., 2006. "Strategic and moral motivation for corporate social responsibility," MPRA Paper 20278, University Library of Munich, Germany.
    22. David Murillo & Josep Lozano, 2006. "SMEs and CSR: An Approach to CSR in their Own Words," Journal of Business Ethics, Springer, vol. 67(3), pages 227-240, September.
    23. Maria Santos, 2011. "CSR in SMEs: strategies, practices, motivations and obstacles," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 7(3), pages 490-508, August.
    24. 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.
    25. Jess H. Chua & James J. Chrisman & Pramodita Sharma, 1999. "Defining the Family Business by Behavior," Entrepreneurship Theory and Practice, , vol. 23(4), pages 19-39, July.
    26. Heledd Jenkins, 2006. "Small Business Champions for Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 67(3), pages 241-256, September.
    27. Danny Miller & Isabelle Le Breton-Miller & Richard H. Lester, 2013. "Family Firm Governance, Strategic Conformity, and Performance: Institutional vs. Strategic Perspectives," Organization Science, INFORMS, vol. 24(1), pages 189-209, February.
    28. Francesco Perrini, 2006. "SMEs and CSR Theory: Evidence and Implications from an Italian Perspective," Journal of Business Ethics, Springer, vol. 67(3), pages 305-316, September.
    29. repec:eme:srjpps:v:6:y:2010:i:2:p:490-508 is not listed on IDEAS
    30. Guilhem Bascle, 2008. "Controlling for endogeneity with instrumental variables in strategic management research," Post-Print hal-00576795, HAL.
    31. Ronald C. Anderson & David M. Reeb, 2003. "Founding-Family Ownership and Firm Performance: Evidence from the S&P 500," Journal of Finance, American Finance Association, vol. 58(3), pages 1301-1327, June.
    32. Thomas M. Zellweger & Robert S. Nason & Mattias Nordqvist & Candida G. Brush, 2013. "Why Do Family Firms Strive for Nonfinancial Goals? An Organizational Identity Perspective," Entrepreneurship Theory and Practice, , vol. 37(2), pages 229-248, March.
    33. Thomas M. Zellweger & Franz W. Kellermanns & James J. Chrisman & Jess H. Chua, 2012. "Family Control and Family Firm Valuation by Family CEOs: The Importance of Intentions for Transgenerational Control," Organization Science, INFORMS, vol. 23(3), pages 851-868, June.
    34. Ian Worthington & Monder Ram & Trevor Jones, 2006. "Exploring Corporate Social Responsibility in the U.K. Asian Small Business Community," Journal of Business Ethics, Springer, vol. 67(2), pages 201-217, August.
    35. Victor Cui & Shujun Ding & Mingzhi Liu & Zhenyu Wu, 2018. "Revisiting the Effect of Family Involvement on Corporate Social Responsibility: A Behavioral Agency Perspective," Journal of Business Ethics, Springer, vol. 152(1), pages 291-309, September.
    36. W. Gibb Dyer Jr. & David A. Whetten, 2006. "Family Firms and Social Responsibility: Preliminary Evidence from the S&P 500," Entrepreneurship Theory and Practice, , vol. 30(6), pages 785-802, November.
    37. James J. Chrisman & Jess H. Chua & Allison W. Pearson & Tim Barnett, 2012. "Family Involvement, Family Influence, and Family–Centered Non–Economic Goals in Small Firms," Entrepreneurship Theory and Practice, , vol. 36(2), pages 267-293, March.
    38. Ted Fuller & Yumiao Tian, 2006. "Social and Symbolic Capital and Responsible Entrepreneurship: An Empirical Investigation of SME Narratives," Journal of Business Ethics, Springer, vol. 67(3), pages 287-304, September.
    39. Grewal, Jody & Serafeim, George, 2020. "Research on Corporate Sustainability: Review and Directions for Future Research," Foundations and Trends(R) in Accounting, now publishers, vol. 14(2), pages 73-127, September.
    40. David Gadenne & Jessica Kennedy & Catherine McKeiver, 2009. "An Empirical Study of Environmental Awareness and Practices in SMEs," Journal of Business Ethics, Springer, vol. 84(1), pages 45-63, January.
    41. Andrea Revell & David Stokes & Hsin Chen, 2010. "Small businesses and the environment: turning over a new leaf?," Business Strategy and the Environment, Wiley Blackwell, vol. 19(5), pages 273-288, July.
    42. Sarah Elena Windolph & Dorli Harms & Stefan Schaltegger, 2014. "Motivations for Corporate Sustainability Management: Contrasting Survey Results and Implementation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 21(5), pages 272-285, September.
    43. Kashmiri, Saim & Mahajan, Vijay, 2014. "Beating the recession blues: Exploring the link between family ownership, strategic marketing behavior and firm performance during recessions," International Journal of Research in Marketing, Elsevier, vol. 31(1), pages 78-93.
    44. Angeloantonio Russo & Francesco Perrini, 2010. "Investigating Stakeholder Theory and Social Capital: CSR in Large Firms and SMEs," Journal of Business Ethics, Springer, vol. 91(2), pages 207-221, January.
    45. Yan Ling & Franz W. Kellermanns, 2010. "The Effects of Family Firm Specific Sources of TMT Diversity: The Moderating Role of Information Exchange Frequency," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 322-344, March.
    46. Assâad El Akremi & Jean-Pascal Gond & Valérie Swaen & Kenneth de Roeck & Jacques Igalens, 2018. "How Do Employees Perceive Corporate Responsibility? Development and Validation of a Multidimensional Corporate Stakeholder Responsibility Scale," Post-Print halshs-01520959, HAL.
    47. Duygu Turker, 2009. "Measuring Corporate Social Responsibility: A Scale Development Study," Journal of Business Ethics, Springer, vol. 85(4), pages 411-427, April.
    48. Sabrina Scheidler & Laura Marie Edinger-Schons & Jelena Spanjol & Jan Wieseke, 2019. "Scrooge Posing as Mother Teresa: How Hypocritical Social Responsibility Strategies Hurt Employees and Firms," Journal of Business Ethics, Springer, vol. 157(2), pages 339-358, June.
    49. Francesco Perrini & Angeloantonio Russo & Antonio Tencati, 2007. "CSR Strategies of SMEs and Large Firms. Evidence from Italy," Journal of Business Ethics, Springer, vol. 74(3), pages 285-300, September.
    50. Julia Suess-Reyes, 2017. "Understanding the transgenerational orientation of family businesses: the role of family governance and business family identity," Journal of Business Economics, Springer, vol. 87(6), pages 749-777, August.
    51. 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.
    52. Christopher Wickert & Andreas Georg Scherer & Laura J. Spence, 2016. "Walking and Talking Corporate Social Responsibility: Implications of Firm Size and Organizational Cost," Journal of Management Studies, Wiley Blackwell, vol. 53(7), pages 1169-1196, November.
    53. Franz W. Kellermanns & Kimberly A. Eddleston & Thomas M. Zellweger, 2012. "Article Commentary: Extending the Socioemotional Wealth Perspective: A Look at the Dark Side," Entrepreneurship Theory and Practice, , vol. 36(6), pages 1175-1182, November.
    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. Leon Guillén & Afcha Sergio & Chu Manuel, 2022. "Research on social responsibility of small and medium enterprises: a bibliometric analysis," Management Review Quarterly, Springer, vol. 72(3), pages 857-909, September.
    2. Ernst, Robin-Alexander & Gerken, Maike & Hack, Andreas & Hülsbeck, Marcel, 2022. "Family firms as agents of sustainable development: A normative perspective," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    3. Christoph Stock & Laura Pütz & Sabrina Schell & Arndt Werner, 2024. "Corporate Social Responsibility in Family Firms: Status and Future Directions of a Research Field," Journal of Business Ethics, Springer, vol. 190(1), pages 199-259, February.
    4. Dongsoo Kim & Jongseon Lee & Nami Kim, 2023. "Engaging CSR in SMEs by exporting: The critical factors of CEOs and markets," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(4), pages 1953-1964, July.
    5. Uzhegova, Maria & Torkkeli, Lasse & Saarenketo, Sami, 2019. "Corporate Social Responsibility in SMEs: Implications on Competitive PerformanceDate submitted: October 12, 2017Revised version accepted after double blind review: December 15, 2018," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 30(2-3), pages 232-267.
    6. Davila, Jessenia & Duran, Patricio & Gómez-Mejía, Luis & Sanchez-Bueno, Maria J., 2023. "Socioemotional wealth and family firm performance: A meta-analytic integration," Journal of Family Business Strategy, Elsevier, vol. 14(2).
    7. Maria Jesus Bonilla‐Priego & Juan‐José Nájera‐Sánchez & Xavier Font, 2022. "Beyond ethics: The transformational power of overlapping motivations in implementing strategic sustainability actions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 685-697, March.
    8. Matteo Pedrini & Valentina Bramanti & Benedetto Cannatelli, 2016. "The impact of national culture and social capital on corporate social responsibility attitude among immigrants entrepreneurs," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 20(4), pages 759-787, December.
    9. Christian M. Faller & Dodo zu Knyphausen-Aufseß, 2018. "Does Equity Ownership Matter for Corporate Social Responsibility? A Literature Review of Theories and Recent Empirical Findings," Journal of Business Ethics, Springer, vol. 150(1), pages 15-40, June.
    10. Ginesti, Gianluca & Ossorio, Mario & Dawson, Alexandra, 2023. "Family businesses and debt maturity structure: Focusing on family involvement in governance to explain heterogeneity," Journal of Family Business Strategy, Elsevier, vol. 14(2).
    11. Brigitte Hoogendoorn & Daniela Guerra & Peter Zwan, 2015. "What drives environmental practices of SMEs?," Small Business Economics, Springer, vol. 44(4), pages 759-781, April.
    12. Laura Broccardo & Elisa Truant & Lèo‐Paul Dana, 2023. "The sustainability orientation in the wine industry: An analysis based on age as a driver," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1300-1313, May.
    13. Mercedes Rubio‐Andrés & María del Mar Ramos‐González & Miguel Ángel Sastre‐Castillo & Ignacio Danvila‐del‐Valle, 2020. "Exploring sustainability, good governance, and social responsibility in small and medium enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 852-869, March.
    14. Ki‐Hoon Lee & David M. Herold & Ae‐Li Yu, 2016. "Small and Medium Enterprises and Corporate Social Responsibility Practice: A Swedish Perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 23(2), pages 88-99, March.
    15. Cambrea, Domenico Rocco & Ponomareva, Yuliya & Pittino, Daniel & Minichilli, Alessandro, 2022. "Strings attached: Socioemotional wealth mixed gambles in the cash management choices of family firms," Journal of Family Business Strategy, Elsevier, vol. 13(3).
    16. Merja Lähdesmäki & Marjo Siltaoja & Laura J. Spence, 2019. "Stakeholder Salience for Small Businesses: A Social Proximity Perspective," Journal of Business Ethics, Springer, vol. 158(2), pages 373-385, August.
    17. Randerson, Kathleen, 2022. "Conceptualizing family business social responsibility," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    18. Madden, Laura & McMillan, Amy & Harris, Oneil, 2020. "Drivers of selectivity in family firms: Understanding the impact of age and ownership on CSR," Journal of Family Business Strategy, Elsevier, vol. 11(2).
    19. Lorraine Uhlaner & Marta Berent-Braun & Ronald Jeurissen & Gerrit Wit, 2012. "Beyond Size: Predicting Engagement in Environmental Management Practices of Dutch SMEs," Journal of Business Ethics, Springer, vol. 109(4), pages 411-429, September.
    20. Alexander Bergmann & Peter Posch, 2018. "Mandatory Sustainability Reporting in Germany: Does Size Matter?," Sustainability, MDPI, vol. 10(11), pages 1-20, October.

    More about this item

    Keywords

    CSR; SME; SEW; Family firm succession;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

    Statistics

    Access and download statistics

    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:spr:jbecon:v:93:y:2023:i:3:d:10.1007_s11573-022-01113-9. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.