Community Social Responsibility and Its Consequences for Family Business Performance*¹

1 The natural log (ln) is used when responses are highly skewed creating a linear transformation of the distribution. This process allows for meaningful interpretation of data values that are commonly skewed, such as income levels (George and Mallery 2003).

Abstract

Family‐centered businesses may have unique perspectives of socially responsible behavior due to family involvement and ties to the community. This research explored the antecedents and consequences of community social responsibility (CSR) for family firms operating in small and rural markets. Using a national sample from the 2000 wave of the National Family Business Survey (NFBS), researchers profiled family business operators' (n = 221) to determine if their CSR orientation contributed to family business performance. Enlightened self interest and social capital perspectives provide a framework for elaborating the role of CSR in sustaining family businesses in changing small communities. Results indicate that three dimensions, commitment to the community, community support, and sense of community, account for 43-percent of the variation in family business operators' CSR. Size of the business was significantly related to family firms' ability to give and receive community support. Further, commitment to the community was found to significantly explain perceived family business performance while community support explained financial performance. Findings suggest that socially responsible business behaviors can indeed contribute to the sustainability of family businesses in small rural communities.

* This manuscript received the “Best Paper Award” at the Third Annual Office Depot Small Business Research Forum on Family Entrepreneurship, March 10, 2007, Fort Lauderdale, Florida. The forum was jointly sponsored by Office Depot, the College of Business at Florida Atlantic University, the Journal of Small Business Management, and the Ewing Marion Kauffman Foundation. This article reports results from the Cooperative Regional Research Project, NE‐167 “Family Business Viability in Economically Vulnerable Communities,” partially supported by the Cooperative States Research, Education, and Extension Service (CSREES); U.S. Department of Agriculture; Baruch College, the experiment stations at the University of Arkansas, University of Hawaii at Manoa, University of Illinois, Purdue University (Indiana), Iowa State University, University of Minnesota, Cornell University (New York), North Dakota State University, The Ohio State University, Oklahoma State University, Utah State University, and University of Wisconsin‐Madison. Details of the survey and related research activities can be found at http://nimss.umd.edu/homepages/saes.cfm?trackID=7857.

* This manuscript received the “Best Paper Award” at the Third Annual Office Depot Small Business Research Forum on Family Entrepreneurship, March 10, 2007, Fort Lauderdale, Florida. The forum was jointly sponsored by Office Depot, the College of Business at Florida Atlantic University, the Journal of Small Business Management, and the Ewing Marion Kauffman Foundation. This article reports results from the Cooperative Regional Research Project, NE‐167 “Family Business Viability in Economically Vulnerable Communities,” partially supported by the Cooperative States Research, Education, and Extension Service (CSREES); U.S. Department of Agriculture; Baruch College, the experiment stations at the University of Arkansas, University of Hawaii at Manoa, University of Illinois, Purdue University (Indiana), Iowa State University, University of Minnesota, Cornell University (New York), North Dakota State University, The Ohio State University, Oklahoma State University, Utah State University, and University of Wisconsin‐Madison. Details of the survey and related research activities can be found at http://nimss.umd.edu/homepages/saes.cfm?trackID=7857.

Notes

* This manuscript received the “Best Paper Award” at the Third Annual Office Depot Small Business Research Forum on Family Entrepreneurship, March 10, 2007, Fort Lauderdale, Florida. The forum was jointly sponsored by Office Depot, the College of Business at Florida Atlantic University, the Journal of Small Business Management, and the Ewing Marion Kauffman Foundation. This article reports results from the Cooperative Regional Research Project, NE‐167 “Family Business Viability in Economically Vulnerable Communities,” partially supported by the Cooperative States Research, Education, and Extension Service (CSREES); U.S. Department of Agriculture; Baruch College, the experiment stations at the University of Arkansas, University of Hawaii at Manoa, University of Illinois, Purdue University (Indiana), Iowa State University, University of Minnesota, Cornell University (New York), North Dakota State University, The Ohio State University, Oklahoma State University, Utah State University, and University of Wisconsin‐Madison. Details of the survey and related research activities can be found at http://nimss.umd.edu/homepages/saes.cfm?trackID=7857.

1 The natural log (ln) is used when responses are highly skewed creating a linear transformation of the distribution. This process allows for meaningful interpretation of data values that are commonly skewed, such as income levels (George and Mallery 2003).

2 All other hypothesized relationships between personal/business demographics and the three CSR dimensions (H1a–e) were tested and not supported.

Additional information

Notes on contributors

Linda S. Niehm

Linda Niehm is assistant professor in the Department of Apparel, Educational Studies and Hospitality Management at Iowa State University.

Jane Swinney

Jane Swinney is assistant professor in the Department of Design, Housing and Merchandising at Oklahoma State University.

Nancy J. Miller

Nancy J. Miller is professor and research liaison in the Department of Textiles, Clothing, and Design at the University of Nebraska–Lincoln.