Journal of Management Research
Volume 18, Number 2 (April–June 2018)
ISSN: 0972-5814 Online ISSN: 0974-455X
Sustainability Practices and Firm Performance in Small and Medium Sized Family Run Firms A Generational Perspective
B.Uma Maheswari, D.Kavitha and R.Nandagopal
| Abstract |
This paper explores the moderating effect that generation has on the relationship between sustainability practices and family firm performance. As sustainability is a strategic decision, the focus on sustainability is also expected to vary with each generation that manages the firm. For the purpose of this study a survey of 181 owner-mangers of manufacturing small and medium sized family businesses in the city of Coimbatore was conducted. The results of the study supported the argument that both environmental and social sustainability practices have a positive relationship on family firm performance. The relationship was stronger for the environmental sustainability practices (ESP) than for the social sustainability practices (SSP). Both these relationships provide support for the ‘business case’ of sustainability. Significant moderation effects from the multiple regression analysis indicated the moderation effect of generation on the relationship between both environmental and social sustainability practices on family firm performance (FFP). As this research is specifically undertaken in a developing country where the role of SMEs is vital, the study fills the gap and contributes to the domain knowledge to enhance the conceptual base in the sustainability-small family firm domain.
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