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Sustainable family business

Author

Listed:
  • Rawa Alwadani
  • Nelson Oly Ndubisi

Abstract

Purpose - Family centered non-economic (FCNE) goals, such as environmental and social goals, are sometimes strenuous to “sell” to non-family members in a family business, and are often open to resistance. The purpose of this paper is to identify socio-psychological mechanisms for achieving FCNE goals because, in addition to economic goals, they are the other two components of the triple bottom line. Design/methodology/approach - Through a juxtaposition of the literature on family businesses, and the theories of mindfulness and psychological ownership, this paper argues for the facilitating roles of family involvement and mindful organizing in the achievement of FCNE goals. An example of how a Kuwaiti oil company implements these ideas is appended. Findings - A moderated link between family involvement, mindful organizing and FCNE goal of environmental sustainability. Besides its direct effect on environmental sustainability, mindful organizing also has a potential mediating role in the relationship between family involvement and environmental sustainability. Psychological ownership, environmental sensitivity and individual mindfulness will moderate the relationship between mindful organizing and the achievement of environmental sustainability goals. Research limitations/implications - The paper presents ten propositions and argues that three types of family involvement (ownership, management and inter-generational), together with non-family engagement (through mindful organizing) would lead to success in achieving the FCNE goal of environmental sustainability. Psychological ownership, environmental sensitivity and individual mindfulness are potential moderators. Practical implications - The paper suggests some key drivers of FCNE goal of environmental sustainability as well as several contingent factors. Applicable to family businesses, owners and/or managers of similar firms can apply knowledge from this study in the pursuit of environmental sustainability. Originality/value - The paper’s model advances the current understanding of the link between family involvement, mindful organizing, environmental sustainability, psychological ownership, environmental sensitivity and individual mindfulness in the context of family business. The paper further suggests new future research directions.

Suggested Citation

  • Rawa Alwadani & Nelson Oly Ndubisi, 2019. "Sustainable family business," International Journal of Manpower, Emerald Group Publishing Limited, vol. 41(7), pages 945-965, October.
  • Handle: RePEc:eme:ijmpps:ijm-08-2019-0359
    DOI: 10.1108/IJM-08-2019-0359
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    Citations

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    Cited by:

    1. Adriana Cioca & Kassam Wehbe & Delia Popescu & Constanta Popescu, 2020. "The Main Drivers for Sustainable Decisions in a Family Business That Impact the Company’s Performance," Sustainability, MDPI, vol. 12(20), pages 1-14, October.
    2. Mani, Venkatesh & Jabbour, Charbel Jose Chiappetta & Mani, Kavitha T.N., 2020. "Supply chain social sustainability in small and medium manufacturing enterprises and firms’ performance: Empirical evidence from an emerging Asian economy," International Journal of Production Economics, Elsevier, vol. 227(C).
    3. Samir A. Abdelaziz, 2021. "The Importance of the Governance Role in Achieving Stability and Sustainability in Family Business Companies Through Generations," Business and Management Studies, Redfame publishing, vol. 7(3), pages 16-24, December.

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