This study examines how Corporate Social Responsibility (CSR) mediates the relationship between Transgenerational Entrepreneurship (TE) and Financial Performance (FP) in family businesses. Specifically, it explores how community-, environment-, and employee-oriented CSR initiatives, along with the TE dimensions of family relationships, family entrepreneurship, and future generations, shape long-term success.
Drawing on a cross-sectional dataset of 1,560 family firms from multiple regions, the study employs Structural Equation Modeling (SEM) to evaluate the links between TE, CSR, and FP. Principal Component Analysis (PCA) and Confirmatory Factor Analysis (CFA) validate the constructs. Control variables include CEO demographics, governance structures, firm size, industry, and geographic region.
Results indicate that CSR significantly mediates the TE–FP relationship. Community-oriented CSR increases stakeholder trust and loyalty, environmental CSR enhances efficiency and public perception, and employee-oriented CSR fosters workforce commitment and productivity. Family entrepreneurship and the development of future generations emerge as key drivers of both CSR engagement and improved financial outcomes, highlighting the synergistic effect of entrepreneurial continuity and socially responsible practices.
By integrating CSR and TE into a unified framework, this study clarifies how family firms can leverage entrepreneurial legacies to implement socially responsible initiatives, thereby aligning profitability with broader societal and environmental obligations. The findings offer practical guidance for family businesses seeking to maintain competitiveness and resilience across generations.
