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Sustainable Entrepreneurial Orientation in Family Firms

Author

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  • Felipe Hernández-Perlines

    (Department of Business Administration, University of Castilla-La Mancha, Toledo 45071, Spain)

  • Nina Rung-Hoch

    (Department of Strategy, Leadership and People, Barcelona 08021, Spain)

Abstract

This study examines how an entrepreneurial orientation moderates the effect of corporate social responsibility (CSR) on family firm performance. Analysis of 174 family firms was conducted using second-generation, partial least squares structural equation modeling (PLS-SEM) in SmartPLS 3.2.6. A survey of family firms and compliant sustainability reports, made under the rules of the GRI (Global Reporting Initiative) for these firms yielded the empirical data. This study contributes to the literature in several ways. First, the analysis shows that GRI reports offer a suitable way for analyzing CSR because the proposed measures are reliable and valid. Second, CSR actions by family firms exert a substantial positive influence on these firms’ performance. Third, entrepreneurial orientation is a good predictor of the success of family firms, positively influencing their performance. Fourth, entrepreneurial orientation positively moderates the effect of CSR on family firm performance, enhancing this effect.

Suggested Citation

  • Felipe Hernández-Perlines & Nina Rung-Hoch, 2017. "Sustainable Entrepreneurial Orientation in Family Firms," Sustainability, MDPI, vol. 9(7), pages 1-16, July.
  • Handle: RePEc:gam:jsusta:v:9:y:2017:i:7:p:1212-:d:104246
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