Are Family Firms More Purpose-Driven?

This study bridges research on family firms’ socio-emotional wealth (SEW) with research on corporate purpose. We explore whether family firms exhibit stronger beliefs related to purpose compared to those in non-family firms. We develop hypotheses on the conditions under which family firms demonstrate a stronger sense of purpose, considering different family governance and leadership configurations. Our findings make two significant contributions. First, we advance the literature on corporate purpose by unpacking the role that different governance configurations have on corporate purpose. Second, we address the mixed assumptions concerning whether family firms are more or less purpose-driven by providing the first empirical analysis about corporate purpose in family firms, and explain such difference based on the heterogeneity of family firms.