Sanseverino, Andrea (2026) The Sustainability Trajectory in Family Business: A Multi-Level Analysis. [Tesi di dottorato]

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Abstract

The thesis aims to shed light, both from a theoretical and empirical perspective, on the sustainability choices within family firms. In this regard, this section presents the structure of the thesis: the literature review in the first chapter lays the foundation for advancing current knowledge on the topic, and the following chapters aim to exploit research gaps and offer empirical evidence to contribute to the field. That is, first, how it intends to grasp sustainability in family business is defined, and the research questions are derived. Second, how each chapter answers such questions is presented.The conceptualisation of sustainability within business economics has undergone a profound transformation, evolving from a macroeconomic concern regarding resource depletion to a strategic organisational imperative defined by the ability to meet diverse stakeholder expectations over the long term (Fritz et al., 2021; Schultz et al., 2011). While distinct nuances exist between Corporate Social Responsibility (CSR) and sustainability, contemporary scholarship increasingly views them as umbrella constructs that necessitate aligning financial and non-financial goals (Battisti et al., 2023; Faller & zu Knyphausen-Aufseß, 2018). Within this paradigm, family firms represent a unique theoretical context (Chua et al., 1999; Memili et al., 2018), as these entities are not merely economic agents but are fundamentally governed by the preservation of Socioemotional Wealth (SEW)—a non-financial endowment encompassing identity, influence, and dynastic continuity (Berrone et al., 2010; Gómez-Mejía et al., 2007). Consequently, the family business context offers a distinct theoretical nexus where the transgenerational intent of owners inherently links organisational governance to the principles of sustainable development I Introduction (Delmas & Gergaud, 2014; Zellweger et al., 2013). Scholars have devoted considerable attention to investigating how the specific behavioural attributes of family firms influence their environmental and social performance, recognising that family firms operate under a different logic than their non-family counterparts, often prioritising the preservation of SEW over short-term profit maximisation (Bammens & Hünermund, 2020; Lumpkin & Brigham, 2011). Because the family name is frequently synonymous with the firm, family owners act as stewards with a heightened sensitivity to corporate reputation, theoretically predisposing them to socially responsible behaviour to maintain legitimacy within their communities (Deephouse & Jaskiewicz, 2013; Le Breton-Miller & Miller, 2016). However, the intersection of family influence and sustainability is characterised by significant complexity and potential drawbacks, revealing a critical ability-and-willingness paradox (Chrisman et al., 2015). While family firms may be willing to act sustainably to protect their reputation, they often lack the financial capital and specialised knowledge required to implement complex eco-innovations (Adomako et al., 2019; Doluca et al., 2018). Furthermore, the desire to maintain absolute family control can induce risk aversion, leading firms to avoid the uncertainty associated with green investments or external certifications that demand transparency (Memili et al., 2018; Miroshnychenko & De Massis, 2022). In this regard, the thesis aims to enter and extend the debate about the interplay between the peculiar characteristics of family firms and their sustainability strategies. To do this, it first addresses the following research question: RQ1) How have studies to date conceptualised the antecedents, processes, and outcomes of sustainability in family firms, and how do these elements interact across organisational, governance, and individual levels of analysis? Indeed, although the field has experienced a surge in publications between 2019 and 2025, previous literature has often treated family business sustainability II Introduction through binary comparisons or isolated theoretical lenses, neglecting the complex interplay of antecedents, processes, and outcomes across different levels of analysis (Heo & Pak, 2025; Mariani et al., 2023). Therefore, the first chapter of this thesis provides an overview of the topic by conducting a systematic literature review of 145 peer-reviewed studies published between 1999 and 2025. This analysis organises existing knowledge through an antecedent–process–outcome model across organisational, governance, and individual levels of analysis, highlighting how heterogeneous SEW configurations differentially impact the adoption of symbolic versus substantive sustainability practices (Carbone et al., 2022). Building on this foundation, the thesis transitions to an empirical investigation, focusing on two specific aspects that shape the relationships among family business governance, generational cohorts, and sustainability outcomes. Chapter two considers the specific context of the Circular Economy (CE) and the influence of generational demographics on strategic performance. Utilising the theoretical framework of Upper Echelons Theory, this study explores the cognitive patterns of 'Silent Generation' Chief Executive Officers (born 1928–1945), positing that while the conservative values of this cohort theoretically align with resource efficiency, their formative experiences often entrench linear economic models that hinder circular innovation (Hambrick & Mason, 1984; Kirchherr et al., 2018). Thus, it is timely to determine how generational identity interacts with family governance mechanisms to influence the adoption of circular strategies. The research questions associated are as follows: RQ2) What is the effect of CEOs belonging to the Silent Generation on the circular economy performance of the firm? And to what extent does the involvement of the family board directors influence the relationship between CEOs belonging to the Silent Generation and circular economy performance? III Introduction Finally, chapter three addresses the outcomes of sustainability from a novel perspective. While existing research primarily examines firm-level financial or environmental performance, the impact of Environmental, Social, and Governance (ESG) engagement on the family system itself remains scarce (Stock et al., 2024; Waldau, 2024). In response to recent calls for research, this chapter investigates the specific benefits the owning family derives from the firm’s engagement in ESG practices, extending the analysis beyond the firm to the family subsystem. The associated research question is as follows: RQ3)What family-level outcomes do family firms generate through their engagement in ESG activities and/or practices? To answer the empirical questions, the thesis explores the Italian setting. The Italian capital market serves as a unique source for scrutinising the influence of family involvement because of its distinctive feature of a large number of listed family firms (Cascino et al., 2010). Indeed, Italy has the highest incidence of family- controlled firms among the Euronext markets, accounting for approximately three- quarters of listings on the Milan Stock Exchange (AIDAF, 2022). Moreover, these controlling families are usually highly involved in management and governance, creating an environment defined by enduring values and multi-generational perspectives (Cirillo et al., 2017; Sciascia et al., 2013). The specific aims of each analysis dictate the years of investigation and methodologies selected. In the second chapter, the study employs a quantitative approach using a longitudinal dataset comprising 577 firm-year observations of Italian listed family firms for the period 2017–2024. This timeframe corresponds to the enforcement of the European Directive 95/2014 on non-financial disclosure in Italy (Bifulco et al., 2023). For this empirical analysis, panel regression estimations with random effects and interaction terms were chosen to capture intertemporal dynamics and control for unobservable heterogeneity (Hsiao, 2003). Conversely, the third chapter adopts an exploratory IV Introduction qualitative approach to investigate the nuanced family-level outcomes of ESG. This study utilises a multiple-case study methodology involving six medium-to-large Italian family firms recognised as "ESG Champions" (Eisenhardt, 1989; Gioia et al., 2013). Data collection triangulated primary data from 24 in-depth interviews with family members and top management teams against secondary data, analysing the findings through an inductive approach to identify emerging patterns (Gioia et al., 2013; Strauss & Corbin, 1998). The overview of the key findings is as follows. Chapter 1 reveals a pervasive paradox: while the transgenerational intent to protect family reputation fosters a willingness to engage in social sustainability, the desire to maintain absolute control often restricts the financial and knowledge-based ability required for complex eco- innovations (Chrisman et al., 2015; Le Breton-Miller & Miller, 2016). The study proposes a comprehensive framework that illustrates how heterogeneous SEW configurations affect the adoption of symbolic versus substantive practices. Chapter 2 provides empirical evidence of a negative relationship between Silent Generation CEOs and circular economy performance, confirming that cognitive inertia can hinder sustainability transitions (Costanza et al., 2012). However, the study finds that family board involvement positively moderates this relationship, effectively reversing the adverse effect by leveraging stewardship motives to align legacy preservation with circular innovation (Chrisman et al., 2012; Teece, 2014). Chapter 3 concludes that ESG adoption generates significant benefits for the family system itself, classified into four dimensions: continuity, cohesion, connection, and culture. The findings demonstrate that ESG practices function as strategic imperatives that reinforce transgenerational succession, strengthen intra-family bonds, and deepen territorial embeddedness. Therefore, sustainability acts not only as a response to external pressures but as a resource for family resilience and legacy preservation.

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