Does family matter? Ownership, motives and firms' environmental strategy. Issue 1 (February 2023)

• Record Type: Journal Article
• Authors: Saeed, Abubakr; Riaz, Hammad; Liedong, Tahiru Azaaviele; Rajwani, Tazeeb
• Is Part Of: Long range planning. Volume 56:Issue 1(2023)
• Publication Date: 2023-02
• Subjects: Nonmarket strategy -- ISO 14001 -- Environmental strategy -- Family firms -- China -- Institutional theory -- Family and firm legitimacy; Management -- Periodicals; Business planning -- Periodicals; Gestion -- Périodiques; Management; Periodicals; 658.4012
• DOI: 10.1016/j.lrp.2022.102216
• Languages: English
• ISSNs: 0024-6301

Abstract

Abstract: Extant research has primarily focused on the economic drivers and outcomes of corporate environmental performance. This trajectory oversimplifies the motives for environmental strategies across all firm types and particularly overlooks how firm ownership presents other motives for environmental strategies. In this study, we leverage institutional theory to examine how family motives, underpinned by family members' desire to gain or preserve family legitimacy and socio-emotional wealth, affect ISO 14001 certification. Using firm-level data, we find that family ownership has a positive effect on ISO 14001 certification. This effect is stronger for firms whose names include the family name and also for firms located closer to large cities. Our study contributes to nonmarket strategy literature by showing that family motives underpin firms' environmental initiatives. It also contributes to institutional theory by delineating the levels of legitimacy that spur nonmarket strategy in family firms.