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Impact of family business identity on green innovation: The moderating role of family culture

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  • Zhao, Yali
  • Zhou, Ran
  • Pang, Liyuan

Abstract

This study examines the impact of family business identity on green innovation, using data from family businesses listed on China's A-share markets between 2011 and 2020. The results indicate that family business identity has a significant negative effect on green innovation, particularly on substantive green innovation. This effect is further amplified by China's distinctive family culture. Mechanism analysis suggests that a strong family business identity heightens resource pressures due to an emphasis on restricted socioemotional wealth, thereby limiting proactive engagement in green innovation initiatives. These findings help explain the “green development dilemma” faced by family businesses and offer empirical evidence and managerial insights to support greater engagement in green innovation practices among family businesses in China.

Suggested Citation

  • Zhao, Yali & Zhou, Ran & Pang, Liyuan, 2025. "Impact of family business identity on green innovation: The moderating role of family culture," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    • Handle: RePEc:eee:finana:v:104:y:2025:i:pa:s1057521925003631
    DOI: 10.1016/j.irfa.2025.104276
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