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Substantial response or impression management? Compliance strategies for sustainable development responsibility in family firms

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  • Wu, Bao
  • Monfort, Abel
  • Jin, Chenfei
  • Shen, Xinyan

Abstract

Compliance strategies for sustainability responsibility in family businesses involve substantial response and impression management. Substantial responses seek to reduce pollution by making significant changes in production, process or product design. Impression management seeks stakeholder support and turns away from large investments in sustainable technology or processes. This research analyzes the compliance strategies of family businesses with a sample of 2977 Chinese companies. The results show that family businesses use both impression management and substantial response. Public pressure positively moderates the use of impression management. More interestingly, business-government relations positively moderate the use of impression management and negatively moderate the use of substantial response. Finally, the results reveal that the moderating effects of public pressure and business-government relations are context-dependent on institutional voids.

Suggested Citation

  • Wu, Bao & Monfort, Abel & Jin, Chenfei & Shen, Xinyan, 2022. "Substantial response or impression management? Compliance strategies for sustainable development responsibility in family firms," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    • Handle: RePEc:eee:tefoso:v:174:y:2022:i:c:s0040162521006478
    DOI: 10.1016/j.techfore.2021.121214
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