Does family matter? The moderating role of family involvement on the relationship between CSR and firm performance

Jihwan Yeon, Michael S. Lin, Seoki Lee, Amit Sharma

Research output: Contribution to journalArticlepeer-review

20 Scopus citations


Purpose: The purpose of this study is to investigate the moderating role of family involvement on the corporate social responsibility (CSR)-firm performance (FP) relationship in the US hospitality industry. Building on agency theory, this study examines how family ownership, management and board control influence the relationship between CSR and FP. Design/methodology/approach: To examine the moderating effect of family ownership, family management and family board control, this study adopts the two-way fixed-effects model and performs a panel regression analysis with robust standard errors. The sample period spans 1994–2018 and 565 firm-year observations are included. Findings: This study finds that the impact of CSR on FP is positively moderated by the extent of a firm’s family member involvement. In specific, all three aspects of corporate governance (i.e. ownership, management and board control) positively moderate the relationship between CSR and FP. Research limitations/implications: Findings of this study yield several recommendations for hospitality managers, including shaping strategic decisions for implementing CSR, by providing a unique perspective that the involvement of founding family members can be helpful in enhancing firm value through CSR activities. Originality/value: This study sheds light on the further understanding of the CSR-FP link in the hospitality literature. In addition, this study provides practical guidelines for hospitality firms in the context of CSR by revealing possible advantages of strengthened founding family involvement.

Original languageEnglish (US)
Pages (from-to)3729-3751
Number of pages23
JournalInternational Journal of Contemporary Hospitality Management
Issue number10
StatePublished - Oct 20 2021

All Science Journal Classification (ASJC) codes

  • Tourism, Leisure and Hospitality Management


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