How ESG configurations are linked to family firm performance: Winning combinations and what to avoid―Evidence from Spain

The growing importance of ESG (environmental, social, and governance) pillars, fueled by global concerns about climate change, is pushing private businesses to take on social and environmental responsibilities beyond mere economic profit. Family firms (FFs) are prominent players worldwide, accountin...

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Detalles Bibliográficos
Autores: Llach, Josep, Palau-Pinyana, Erola, Sánchez Famoso, Valeriano
Tipo de recurso: artículo
Fecha de publicación:2025
País:España
Institución:Universidad del País Vasco
Repositorio:Addi. Archivo Digital para la Docencia y la Investigación
OAI Identifier:oai:addi.ehu.eus:10810/74965
Acceso en línea:http://hdl.handle.net/10810/74965
Access Level:acceso embargado
Palabra clave:Family firms
ESG
Business performance
SEW
Triple bottom line
Family duality
Descripción
Sumario:The growing importance of ESG (environmental, social, and governance) pillars, fueled by global concerns about climate change, is pushing private businesses to take on social and environmental responsibilities beyond mere economic profit. Family firms (FFs) are prominent players worldwide, accounting for 80%—90% of all businesses globally. They are also at the forefront of the private sector in integrating ESG pillars, seemingly driven by their socioemotional wealth (SEW), as they seek to enhance their legitimacy through active participation in ESG practices. But the combinations of ESG pillars that are linked to overall business performance remain uncertain. Findings from a configurational approach based on a sample of 298 Spanish FFs reveal that not all pillars of ESG have the same prominence. In short, we detect six key configurations linked to stronger innovation and financial outcomes. Notably, strong social and governance practices are associated with higher family business performance, while environmental investments may have less immediate financial impact unless paired with other ESG pillars. In addition, none of the configurations include all three ESG pillars simultaneously. Finally, two configurations are identified for FFs to avoid, as they are associated with lower business performance.