Strategic Sustainability of Businesses(A case study of family Companies)

Document Type : Research Paper

Authors

1 Assistant Professor, Faculty of Management & Accounting, PayameNoor University, Tehran, Iran.

2 Associate Professor, Faculty of Literature and Humanities, University of Guilan, Rasht, Iran.

10.22111/jmr.2025.46336.6044

Abstract

Abstract
This study aimed to develop a strategic sustainability model for family businesses using a mixed-methods approach. In the qualitative phase, grounded theory was applied through interviews with 18 leaders of multi-generational family businesses in western Iran, resulting in a paradigmatic model. The quantitative phase tested this model using structural equation modeling with data from 220 randomly selected entrepreneurs, experts, and managers of small and medium-sized enterprises. The results confirmed the model’s validity and highlighted that family businesses manage conflicts between business and family goals through a strong family-oriented value system and talent management, which contributes to long-term sustainability.
Introduction
Sustainability has become a strategic priority for many companies around the world. Sustainability is a strategic necessity that can guarantee business survival. Due to the rapid growth during the last decade, family business research as a field of study has reached a new stage. Family businesses represent a significant socio-economic enterprise in developing and developed countries, accounting for approximately 90% of all enterprises in the world. Therefore, family businesses are an important factor in the economic development of countries. Therefore, the purpose of this research is to design a strategic sustainability model for family businesses. In other words, this research seeks to create a dynamic and multi-level insight of adopting a strategic sustainability approach in family businesses.
 
 
Case study
The statistical population of the qualitative stage consists of family businesses in the western provinces of Iran (West Azerbaijan, Kurdistan and Kermanshah) that operate in their second, third or fourth generation. Semi-structured interviews were conducted with 18 leaders and founders of these businesses to gather first-hand experiences. The statistical population of the quantitative stage includes entrepreneurs and experts in the field of business and managers of small and medium businesses located in the provinces of West Azerbaijan, Kurdistan and Kermanshah, who were selected as the statistical population of the research due to the reliable information they had about the research topic.
Materials and Methods
The method of this research is a combination of quantitative and qualitative research. In the qualitative phase, the research approach is exploratory. The research strategy is action research. The research method is fundamental data theory method. The purpose of the qualitative research phase is to create a systematic model. In the quantitative stage, G-Power software was used to determine the sample size with an error level of 5%, based on which 220 people were selected by simple random sampling. In order to obtain research data, a proportionality questionnaire was designed based on the identified indicators and components related to the sustainability dimensions of family businesses. A designed questionnaire that includes 52 items was distributed among the research sample after expert approval. In order to analyze the quantitative data and test the research hypotheses, and in order to investigate the relationships between the discovered variables and their influence on each other, the variance-based structural equation analysis method and SmartPLS software were used.
Discussion and Results
The findings of the qualitative part of the design of the data model of the strategic sustainability foundation of family businesses, which include; causal conditions (human resource functions, management and leadership functions, and performance management functions), contextual conditions (family cultural structure, family-centric social structure, regional economic structure, and identity-centric historical structure), intervening factors (inheritance capital, crises, generational changes, and regional relative advantages), strategies (value orientation, goal orientation, and talent management), and outcomes (organizational, social, and economic outcomes). In the quantitative section, structural equation modeling (SEM) was employed to test the extracted model using Smart PLS. The statistical population for this phase consisted of entrepreneurs, business experts, and managers of small and medium-sized businesses located in the western provinces of Iran. Approximately 864 individuals were identified based on relative statistics from the departments of Industries and Mines and managers of industrial parks in each province. G-Power was used to determine the sample size with a 5% error level, resulting in a total of 220 individuals selected through simple random sampling. A proportionality assessment questionnaire was designed based on the identified dimensions and indicators relevant to the sustainability of family businesses to collect research data.  The 52-item questionnaire was validated by supervisors, advisors, and faculty members specializing in management and social sciences as experts, confirming its face and content validity. After expert validation, 220 questionnaires were distributed among the research sample. Due to social constraints during the COVID-19 period, most questionnaires were sent to individuals via email and other social media platforms, and responses were collected through the same channels. The quantitative findings support the measurement model and the relationships between its variables.
Conclusions
The results indicate that family businesses effectively manage challenges and conflicts between business goals and family goals through a family-centric value orientation, ensuring the sustainability of the business through the management of family talents.

Keywords

References

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