No abstract

The purpose of this article is to study the effect of family ownership and family generation on financial literacy. To do that, we have analysed a sample of 195 Spanish family businesses, reaching the conclusion that the level of family ownership exerts a negative influence on financial literacy. On the other hand, as family generations advance, financial literacy is favoured. This study benefits professionals and entrepreneurs, since they could, through a series of guidelines, improve financial literacy and, with it, the viability of their respective firms

How family firms adopt a certain corporate social responsibility (CSR) approach remains a relatively unexplored matter in family firm and firm ethics research. Hence, we study how and why the CSR approach (broad vs. narrow; benefits vs. costs) differs within family firms, addressing the influence of the socio-emotional wealth (SEW) dimensions, individually or combined. We used empirical evidence gathered through 13 case studies of firms from the Andalusia region and we used the interpretative approach of the grounded theory based on case study data. Results of our analyses lead to propose that family firms with a higher identification and more positive than negative valence with regard to emotional attachment and family enrichment dimensions will be more likely to exhibit a broad approach of CSR. Likewise, those family firms adopting CSR actions with stakeholders due to instrumental use of image and reputation dimension will more probably display a benefits approach. JEL CLASSIFICATION: L26; M14

Innovation is an essential aspect for the sustainable development of small and medium-sized enterprises (SMEs). Defining formulas to encourage innovation is therefore crucial. Financial literacy is an area of growing interest in both theory and practice and its relationship with innovation performance has been little studied. This chapter examines the importance of financial literacy for business innovation and the effect that risk-taking has on this relationship. Using a quantitative approach, 309 Spanish SMEs of different sectors are analysed. A mediation analysis shows both a direct and an indirect positive effect on innovation. Thus, this chapter brings insights, developing the existing literature of SMEs. So, it contributes to broaden the scope of the innovation and therefore the sustainable development of these firms. Practical implications are presented for four differentiated areas, which may enhance the sustainable development of SMEs: business management, entrepreneurship, public policies, and university.