In this article, we investigate the effect of firm-level natural-environment-related policies on innovation and financial performance in family and nonfamily firms. Our findings demonstrate that family firms are better able to facilitate environmentally friendly firm policies associated with improved firm innovation and greater financial performance more effectively than their nonfamily competitors.
Get full access to this article
View all access options for this article.
References
1.
Adizes, I. (1979). Organizational passages: Diagnosing and treating lifecycle problems of organizations. Organizational Dynamics , 8(1), 2-25.
2.
Anderson, R.C., & Reeb, D.M. (2003). Founding family ownership and firm performance: Evidence from the S&P 500. Journal of Finance, 58(3), 1301-1328.
3.
Anderson, R.C., & Reeb, D.M. (2004). Board composition: Balancing family influence in S&P 500 Firms. Administrative Science Quarterly, 49(2), 209-237.
4.
Andersson, L.M., & Bateman, T.S. (2000). Individual environmental initiative: Championing natural environmental issues in U.S. business organizations. Academy of Management Journal, 45(4), 548-570.
5.
Aragôn-Correa, J.A., & Sharma, S. (2003). A contingent resource-based view of proactive corporate environmental strategy. Academy of Management Review , 28(1), 71-88.
6.
Armstrong, S., & Overton, T.S. (1977). Estimating non-response bias in mail surveys. Journal of Marketing Research, 14, 396-402.
7.
Astrachan, J.H. (2003). Commentary on the special issue. The emergence of the field. Journal of Business Venturing, 18, 567-572.
8.
Bansal, P., & Roth, K. (2000). Why companies go green: A model of ecological responsiveness. Academy of Management Journal, 43(4), 717-739.
9.
Barry, B. (1989). Theories of justice. Berkeley, CA: University of California Press.
10.
Becker, L.C. (1986). Reciprocity. New York: Routledge & Kegan Paul.
11.
Branzei, O., Ursacki-Bryant, T., Vertinsky, I., & Weijiong, Z. (2004). The formation of green strategies in Chinese firms: Matching corporate environmental responses and individual principles. Strategic Management Journal, 25(11), 1075-1095.
12.
Brenkert, G.G. (1996), Private corporations and public welfare. In R.A. Larmer (Ed.),Ethics in the workplace: Selected readings in business ethics. Minneapolis/St. Paul, MN: West Publishing Company.
13.
Cairncross, F. (1992). Costing the earth. Boston, MA: Harvard Business School Press.
14.
Chrisman, J.J., Chua, J.H., & Litz, R. (2003). Discussion: A unified systems perspective of family firm performance: An extension and integration. Journal of Business Venturing, 18, 467-472.
15.
Chrisman, J.J., Chua, J.H., & Steier, L.P. (2005). Sources and consequences of distinctive familiness: An introduction. Entrepreneurship Theory & Practice, 29(3), 237-247.
16.
Chua, J.H., Chrisman, J.J., & Sharma, P. (1999). Defining the family-owned firm by behavior. Entrepreneurship Theory and Practice, 23(4), 19-39.
17.
Clarkson, M.B. (1995). A stakeholder framework for analyzing and evaluating corporate social Performance. Academy of Management Review , 20, 92-117.
18.
Cooper, M.J., Upton, N., & Seaman, S. (2005). Customer relationship management: A comparative analysis of family and nonfamily business practices. Journal of Small Business Management, 43(3), 242-256.
19.
Corbetta, G., & Salvato, C. (2004). Self-serving or self-actualizing? Models of man and agency costs in different types of family firms: A commentary on "comparing the agency costs of family and nonfamily firms: Conceptual issues and exploratory evidence." Entrepreneurship Theory & Practice, 28(4), 355-362.
20.
Cordano, M., & Frieze, I.H. (2000). Pollution reduction preferences of U.S. environmental managers: Applying Ajzen's theory of planned behavior. Academy of Management Review, 43(4), 627-641.
21.
Craig, J.B.L., Cassar, G., & Moores, K. (2006). A 10-year longitudinal investigation of strategy, systems, and environment on innovation in family firms. Family Business Review, 19(1), 1-10.
22.
Daily, C.M., & Dollinger, M.J. (1992). An empirical examination of ownership structure in family and professionally managed firms. Family Business Review, 5(2), 117-136.
23.
Davis, P.S., Dibrell, C.C., & Janz, B. (2002). The impact of time on the strategy-performance relationship: Implications for managers. Industrial Marketing Management, 31(4), 339-347.
24.
Dess, G.G., & Davis, P.S. (1984). Porter's (1980) generic strategies as determinants of strategic group membership and organizational performance. Academy of Management Journal, 27, 467-488.
25.
Dess, G.G., & Robinson, R.B. (1984). Measuring organizational performance in the absence of objective measures: The case of the privately-held firm and conglomerate business unit. Strategic Management Journal, 5, 263-272.
26.
Dibrell, C.C., Davis, P.S., & Danskin, P. (2005). The influence of internationalization on time-based competition. Management International Review, 45(2), 173-195.
27.
Donaldson, L., & Davis, J.H. (1991) Stewardship theory or agency theory: CEO governance and shareholder returns. Australian Journal of Management , 16,49-64.
28.
Donaldson, T., & Preston, L.E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20, 65-91.
29.
Dougherty, D., & Hardy, C. (1996). Sustained product innovation in large, mature organizations: Overcoming innovation-to-organization problems. Academy of Management Journal, 39(5), 1120-1154.
30.
Edgett, S., Shipley, D., & Forbes, G. (1992). Japanese and British companies compared: Contributing factors to success and failure in NPD. Journal of Product Innovation Management, 9(1), 3-11.
31.
Egri, C.P., & Herman, S. (2000). Leadership in the North American environmental sector: Values, leadership styles, and contexts of environmental leaders and their organizations. Academy of Management Journal, 43(5), 571-604.
32.
Eiadat, Y., Kelly, A., & Roche, F. (2004). Can environmental pressure sources be compatible with business performance?Academy of Management Proceedings, A1-A6.
33.
Geeraerts, G. (1984). The effect of ownership on the organization structure in small firms. Administrative Science Quarterly, 29, 232-237.
34.
Ghoshal, S. (2005). Bad management theories are destroying good management practices. Academy of Management Learning & Education , 4(1), 75-91.
35.
Gladwin, T.N., Kennelly, J.K., & Krause, T.S. (1995). Shifting paradigms for sustainable development: Implications for management theory and research. Academy of Management Review, 20(4), 874-907.
36.
Habbershon, T.G., & Pistrui, J. (2002). Enterprising families domain: Family-influenced ownership groups in pursuit of transgenerational wealth.FamilyBusiness Review, 15(3), 223-238.
37.
Hambrick, D.C., Gelekanycz, M.A., & Fredrickson, J.W. (1993). Top executive commitment to the status quo: Some tests of its determinants. Strategic Management Journal, 14, 401-417.
38.
Hart, S.L. (1995). A natural-resource-based-view of the firm. Academy of Management Review, 20, 986- 1014.
39.
Hart, S.L., & Ahuja, G. (1996). Does it pay to be green? An empirical examination of the relationship between emission reduction and firm performance. Business Strategy and the Environment, 5, 30-37.
40.
Hart, S.L., Arnold, M., & Day, R. (2000). The business of sustainable forestry: Meshing operations with strategic purpose. Interfaces, 30(3), 234-250.
41.
Hart, S.L., & Milstein, M. (1999). Global sustainability and the creative destruction of industries. Sloan Management Review, 41(1), 2-33.
42.
Haugh, H.M., & McKee, L. (2003). "It's just like a family"-Shared values in the family firmCommunity, Work & Family, 6(2), 141-159.
43.
Henderson, A. M., & Parsons, T. (Eds.) (1947). Max Weber: The theory of social economic organization. New York: Free Press.
44.
Judge, W.Q., & Douglas, T.J. (1998). Performance implications of incorporating natural environmental issues into the strategic planning process: An empirical assessment . Journal of Management Studies, 35(2), 241-262.
45.
Kanuk, L., & Berenson, C. (1975). Mail surveys and response rates: A literature review. Journal of Marketing Research, 22, 440-453.
46.
Kirkpatrick, D. (1990). Environmentalism: The new crusade. Fortune, February 12, 44-51.
47.
Klassen, R.D. (2001). Plant-level environmental management orientation: The influence of management views and plant characteristics. Production and Operations Management, 10(3), 257-275.
48.
La Porta, R., Lopez-de-Salinas, F., & Shleifer, A. (1999). Corporate ownership around the world. Journal of Finance, 54(2), 471-517.
49.
Makower, J. (1993). The e-factor: The bottom line approach to environmentally responsible business. New York: Random House.
50.
Miller, D., & LeBreton Miller, I. (2006). Family governance and family performance: Agency, stewardship, and capabilities. Family Business Review, 19(1), 73-87.
51.
Milliken, F., Martins, L., & Morgan, H. (1998) Explaining organizational responsiveness to work-family issues: The role of human resource executives as issue interpreters. Academy of Management Journal, 41, 580- 592.
52.
Mintzberg, H. (1979). Structuring of organizations. Englewood Cliffs, NJ: Prentice-Hall.
53.
Nunnally, J.C. (1978). Psychometric theory (2nd ed.). New York: McGraw-Hill.
54.
Özsomer, A., Calantone, R.J., & Di Benedetto, A. (1997). What makes firms more innovative? A look at organizational and environmental factors. Journal of Business and Industrial Marketing, 12(6), 400-417.
55.
Porter, M., & C. Van der Linde . (1995). Green and competitive. Harvard Business Review, 73(5), 120-134.
56.
Portney, P.R., & Weyant, J.P. (1999). Discounting and intergenerational equity. Washington, DC: Resources for the Future.
57.
Powell, T. (1992). Organizational alignment as competitive advantage . Strategic Management Journal, 13, 119-134.
58.
Powell, T. (1996). How much does industry matter? An alternative empirical test. Strategic Management Journal, 17, 323-334.
59.
Ram, M., & Holliday, R. (1993). Relative merits: Family culture and kinship in small firms. Sociology, 27(4), 629-648.
60.
Richards, D.A.J. (1982). Gontractarian theory, intergenerational justice, and energy policy. In D. MacLean & P. G. Brown (Eds.), Energy and the future (pp. 131- 150). Totowa, NJ: Rowman & Littlefield.
61.
Romm, J.J. (1994). Lean and clean. New York: Kodansha International.
62.
Rowley, T., & Berman, S. (2000). A brand new brand of CSP. Business and Society, 39(4), 397-418.
63.
Russo, M.V., & Fouts, P.A. (1997). A resource-based perspective on corporate environmental performance and profitability. Academy of Management Journal , 40, 534-559.
64.
Salant, P., & Dillman, D.A. (1994). How to conduct your own survey. Chichester: Wiley.
65.
Salvato, C. (2002). Towards a stewardship theory of the family firm . Presented at Proceedings of the XIth Family Business Network Conference. Helsinki, Finland.
66.
Schmidheiny, S. (1992). Changing course: A global business perspective on development and the environment. Cambridge, MA: MIT Press.
67.
Schneider, A.J. (1989). How members of family owned businesses do the business of family. Unpublished dissertation. UMI Dissertation Services.
68.
Sharma, S. (2000). Managerial interpretations and organizational context as predictors of corporate choice of environmental strategy. Academy of Management Journal, 43, 681-697.
69.
Sharma, P., Chrisman, J.J., & Chua, J.H. (1997). Strategic management of the family business: Past research and future challenges. Family Business Review, Spring, 1-35.
70.
Sharma, P., & Irving. G.P. (2005). Four bases of family business successor commitment: Antecedents and consequences. Entrepreneurship: Theory & Practice, 29(1), 13-33.
71.
Shetzer, L., Stackman, R.W., & Moore, L.F. (1991). Business-environment attitudes and the new environmental paradigm. Journal of Environmental Education, 22(4), 14-21.
72.
Shrivastava, P. (1995). The role of corporations in achieving ecological sustainability. Academy of Management Review, 20(4), 936-960.
73.
Shrivastava, P. (1996). Greening business: Profiting the corporation and the environment. Cincinnati, OH: Thompson Executive Press.
74.
Starik, M., & Rands, G.P. (1995). Weaving an integrated web: Multilevel and multisystem perspectives of ecologically sustainable organizations. Academy of Management Review, 20(4), 908- 935.
75.
Turban, D.B., & Greening, D.W. (1997). Corporate social performance and organizational attractiveness to prospective employees. Academy of Management Journal, 40(3), 658-673.
76.
Utterback, J.M. (1971). The process of technological innovation within the firm. Academy of Management Journal, 14(1), 75-89.
77.
Wade-Benzoni, K.A. (2002). A golden rule over time: Reciprocity in intergenerational allocation decisions. Academy of Management Journal, 45(5), 1011- 1028.
78.
Wally, N., & Whitehead, B. (1994). It's not easy being green. Harvard Business Review, 72(3), 46-52.
79.
Ward, J.L. (1988). The special role of strategic planning for family businesses. Family Business Review, 1(2), 105-117.
80.
Weiss, E.B. (1989). In fairness to future generations: International law, common patrimony, and intergenerational equity. New York: Transnational Publishers.
