The Main Drivers for Sustainable Decisions in a Family Business That Impact the Company’s Performance

• Main Authors: Adriana Cioca, Kassam Wehbe, Delia Popescu, Constanta Popescu
• Format: Article
• Language: English
• Published: MDPI AG 2020-10-01
• Series: Sustainability
• Subjects: family business; time; decision; process; environment; sustainable
• Online Access: https://www.mdpi.com/2071-1050/12/20/8659

The successful ways in which families have conducted their businesses decade after decade have drawn scholars’ attention to what the mainstream ideas are when it comes to making sustainable decisions. This article focuses on the main drivers behind sustainable decisions made by family businesses with respect to three pillars: economic, environmental, and social. In this context, the authors’ aim is to present a statistical model for forecasting companies’ future revenue in the next financial year by analyzing the relationship between the main internal drivers of family businesses and their corresponding financial objectives. Additionally, the analysis of the long-term strategy and the short-term actions indicates an understanding of environmental awareness. Reaction time in investment decisions represents a challenge for the sustainable performance of family companies. Human resources with good operation management in family businesses contribute to the assurance of long-term business stability and high returns on investments. The results will contribute to the literature on economic sustainability of family businesses.