Investigating the Key Drivers of the Sustainability of Family Businesses: The Mediating Role of Strategic Management Implementation

Abstract

Research on family business has a long history which is evident in various established theories and practices. Yet, family business sustainability is an underdeveloped area of research. The present study identifies and analyzes the constituents that impact strategic management implementation to achieve sustainability of family firms. This is an empirical study based on a sample of Indian family firms, analyzes using “partial least squares structural equation modeling” (PLS-SEM). Results demonstrate that innovation, competitive advantage, leadership and proactiveness significantly impact strategic management implementation and sustainability of family firms. However, engaging the local community has a negative impact on strategic management implementation and sustainability of family firms. The study makes several contributions to family businesses literature by shedding light on the key factors that foster their future development and sustainability across developed and developing nations. This study offers guidance on strategically organizing and implementing effective sustainability strategies within family firms. This enhancement advances the theoretical understanding and supports practical efforts to ensure family-owned enterprises’ long-term viability and success.