The Theoretical Lens of Sustainability in Family Businesses: Challenges

Abstract

In recent years, family businesses have been identified as the engine of the world economy. The challenges imposed on these companies are many, among which we highlight sustainability, as this is an essential condition for them to continue competing in global markets. Therefore, this research proposes exploring the sustainability challenges family businesses face. The main objective is to integrate the concepts of family businesses and sustainability using a theoretical lens composed of four theories: agency theory, socio-emotional wealth theory, signal theory, and stakeholder theory. Through a narrative review of the literature, we conclude that sustainability in family businesses is a dynamic and multifaceted domain in which several theoretical frameworks must be considered to understand strategic needs. ESG criteria are central in strategic design around environmental management, responsibility, and corporate management. This study contributes to understanding the challenges and opportunities that family businesses face in the search for sustainability. It also presents itself as a valid contribution for professionals, students, and/or any agent promoting sustainable development in family businesses.