A multi-faceted stewardship perspective of the motives and mechanisms of sustainable value creation in family businesses

Family businesses, with their focus on legacy, intergenerational continuity, and strong community ties, are uniquely positioned to contribute to sustainable value creation. However, the idiosyncratic motives and mechanisms underlying this type of value creation, remain largely unaddressed. To respond to this gap, we draw on stewardship theory to investigate the way stewardship influences and/or shapes the motives and mechanisms behind sustainable value creation in the family business. Drawing on an in-depth single case study of a thirdgeneration Italian family business, we reveal the role of stewardship-driven sustainability mechanisms which are grounded in three stewardship motivations – business, community, and environmental. These mechanisms help operationalize processes and strategies that enable creation of sustainable value within the family business. Our study contributes theoretically to the family business literature through context-based theorization and a mid-range theory of motives, mechanisms, and outcomes in family business sustainable value creation.