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

Junsheng Dou (), Emma Su () and Song Wang ()
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Junsheng Dou: Zhejiang University
Emma Su: Mississippi State University
Song Wang: Zhejiang University

Journal of Business Ethics, 2019, vol. 158, issue 1, No 5, 95 pages

Abstract: 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.

Keywords: Family commitment; Family ownership; Long-term orientation; Proactive environmental strategy; Socioemotional wealth; Strategic reference point (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (25)

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DOI: 10.1007/s10551-017-3642-z

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