Maintaining the CSR-Identity of Sustainable Entrepreneurial Firms: The Role of Corporate Governance in Periods of Business Growth

Abstract

This chapter focuses on the maintenance of the CSR-identity of sustainable entrepreneurial firms (SEFs) during periods of business growth. Our aim is to explore to what extent corporate governance mechanisms can be seen as effective mechanisms to maintain the CSR-identity of growing SEFs. To this end, a comprehensive literature review is conducted to obtain conceptual insights, which are subsequently empirically illustrated by a multiple case study of SEFs (N = 7). We conclude that the following barriers to business growth might have an impact on the CSR-identity of SEFs: overtrading/uncontrolled growth, control and delegation, decentralization and formation, indirect expression of identity. Furthermore, we conclude that the following mechanisms of corporate governance might prevent or compensate for the dilution of the CSR-identity of SEFs in periods of business growth: strategy, human resource management, organizational culture, formal monitoring, coordination, media involvement and social monitoring. Finally, we provide recommendations for practitioners, based on our results.