Sustainability in Family Businesses: Examining the Influence of Ownership, Firm Size and Leadership on Business Success and Competitive Advantage

Sustainability has become a major factor for long-term success and a competitive advantage for family businesses. Prior research has pointed to the influence of environmental, social and governance (ESG) practices on corporate sustainability, but little attention has been paid, if any, to the investigation of how generational ownership, firm size (FS) and leadership roles moderate the perception of business success and sustainable competitive advantage (SCA) in family firms. In addressing this gap, this study explores the interrelation of these aspects with sustainability-oriented outcomes. The study employed a cross-sectional survey of family business owners, executives and managers from multiple industries. The data were gathered through a structured questionnaire, and statistical analysis was performed using t -tests and analysis of variance (ANOVA) for checking differences across ownership generations (OGs), company sizes and leadership roles. The findings reveal that multi-generational family businesses show higher perceived business success (PBS) and SCA than their first-generation counterparts. Large family businesses appear to have more capacity to implement ESG strategies successfully by utilising their financial and human resources. Moreover, leadership commitment from shareholders and founders, in particular, is crucial in integrating sustainability within the business model, whereas non-family executives have comparatively less power in driving a sustainability-driven success. These results have profound implications for family businesses, particularly regarding their sustainability initiatives in line with an emphasis on structured ESG integration, leadership commitment and well-directed policy targeting first-generation and smaller enterprises. The study thus adds to the literature on the sustainability of family businesses by providing empirical insights into the triadic interplay of ownership structure, FS and leadership in forging long-term competitive advantage.