Implementing Sustainable Development Concept: A Typology of Family Firms in Poland

TLDR

Sustainable development is a long‑term business orientation toward social, economic and environmental well‑being that has gained momentum as a modern approach preserving future generations’ needs. The study investigates whether family firms with differing levels of sustainable development exhibit between‑group differences. Using a sample of 333 Polish family firms, k‑means clustering identified low, medium, and high groups based on the deployment of pro‑sustainability initiatives. ANOVA showed that firms with higher family involvement and business growth were more likely to absorb sustainable solutions, supporting social identity theory that group dynamics encourage SD initiatives.

Abstract

For companies, sustainable development generally represents a long-term business orientation towards social, economic and environmental well-being. The concept has gained momentum among researchers partly due to the necessity of finding a modern approach to business development that does not deprive the next generation of the opportunity to meet its own needs. Based on a sample of 333 Polish family firms, three groups of businesses were isolated (via k-means clustering) on the basis of low, medium and high deployment of pro-sustainability initiatives. This paper aims to investigate whether family firms demonstrating divergent levels of sustainable development express between-group differences. Measuring diversity using ANOVA with post hoc testing produced results associating business growth and higher levels of family involvement (e.g., via increased participation of family members from different generations in firm management) with the increased absorption of sustainable solutions and actions. These findings support notions from social identity theory suggesting that groups significantly shape the individual identities of their members. This means that family members inclined to implement sustainable development initiatives are likely to stimulate each other to introduce particular solutions and actions in praxis.