Family-controlled companies and business families: non-economic motivations for private social investments

Purpose of the study: This study explores the perspectives of family members involved in family businesses, guided by the following research question: What motivates family-controlled companies and entrepreneurial families to engage in Private Social Investment (PSI)? Methodology/Approach: This qualitative paper utilizes a multiple case study approach, analyzing five family businesses through both primary and secondary data to understand the motivations behind their engagement in PSI. Originality/Relevance: We identify key non-economic motivators for PSI within family-controlled companies and entrepreneurial families, building upon existing research. Among the family-related motivations, factors such as purpose alignment, family values and involvement, the example set by founders or previous generations, and the family's image and reputation emerge as crucial drivers for engaging in PSI. Main results: The findings reveal a diversity of motivations for PSI among family members, which can be categorized as societal, familial, or individual (personal). Furthermore, the strategies that families employ to implement their PSI are also varied. Theoretical contributions: This research contributes to the existing literature on PSI in family businesses by analyzing the phenomenon from the perspective of family stakeholders and identifying the diverse strategies they employ.