Governance characteristics and sustainable longevity of family firms: the role of long-term orientation

Abstract

PurposeThe aim of this research is to study the direct and indirect effects among governance characteristics, long-term orientation and sustainable longevity of family firms.Design/methodology/approachData were collected from 108 family firms operating in different sectors using survey questionnaires. The authors used the partial least square structural equation modeling (PLS-SEM) to examine the hypotheses of the study.FindingsResults indicate that governance characteristics influence long-term orientation and sustainable longevity. Furthermore, results also suggest that long-term orientation partially mediates the impact of governance characteristics on sustainable longevity. These findings provide critical implications for both theory and practice.Originality/valueThe findings of the study fill gaps in the existing literature and contribute to the body of knowledge in strategic management literature by providing additional evidence of the internal drivers of corporate sustainable longevity, particularly for family SMEs in developing economies.