How do family responsible ownership practices enhance social responsibility in small and medium sized family firms?

Abstract

This paper aims to measure the influence of the family responsible ownership practices and the socially responsible vision of families on the socially responsible behaviour of family small and medium firms. To reach this purpose, we define six hypotheses and we apply an empirical testing of an integrative model. Based on a sample of 84 family SMEs, structural equation modelling is applied to test the existence of potential relationships within and between both constructs. This study reveals the relevance of the family responsible ownership practices as a driver that influences socially responsible practices in family SMEs. The results confirmed that positive relationships exist between each of the following three antecedents: A) responsible management succession, b) responsible financial resource allocation and c) professionalism and social responsibility among family SMEs. Additionally, a positive relationship between family responsible ownership practices and family firm social responsibility was found.