Aspiration performance gap, second generation involvement in management, and family Firms' environmental responsibility

Abstract How does the aspiration performance gap affect environmental responsibility of family firms? Using the theory of performance feedback theory and panel data from 6268 Chinese A‐share listed manufacturing family firms from 2011 to 2021, the study shows that (1) The positive aspiration performance gap negatively affects environmental responsibility, while the absolute negative aspiration performance gap shows an inverted U‐shaped relationship. (2) Second generation involvement in management has varying moderating effects on the relationship between different aspiration performance gaps and environmental responsibility. These results enhance the understanding of the heterogeneity in family firms' strategic behaviors and provide valuable insights for family firms' strategic decision‐making regarding environmental responsibility.