This study investigates how corporate environmental responsibility (CER) mediates the link between business ethics and intellectual capital (IC) under the family firms’ (FFs) organizational setting. In particular, the research aims to provide a deeper understanding on how business ethics directly influences IC of FFs, as well as indirectly through the mediating role of the engagement in environmentally responsible practices.
To examine the relationship between business ethics and IC, as well as the mediating role of CER, this study applies multiple regression analyses to a worldwide sample of FFs over the time horizon 2010–2020.
The findings suggest that business ethics in FFs serve as a positive driver of IC, whereas this effect is not observed in their non-FF counterparts. Additionally, we demonstrate that the adoption of environmentally responsible practices by FFs acts as a positive mediator in the relationship between business ethics and IC.
To the best of our knowledge, this study is the first to analyse the mediating role of CER in the link between business ethics and IC among FFs. While IC is gaining increasing relevance among both academics and practitioners, a gap remains in understanding the antecedents of IC development within the FFs’ organizational context. This study addresses this gap by providing insights and empirical evidence into how an ethical approach to business, combined with FFs’ CER engagement, can foster IC as a valuable resource in today’s competitive landscape.
