Resolving the Paradox of Sustainability: Subjective Interpretation of Cyclical Time as An Advantage for Family Enterprises

24 de abril de 2023, Granada (España)

Resolving the Paradox of Sustainability: Subjective Interpretation of Cyclical Time as An Advantage for Family Enterprises

24 de abril de 2023, Granada (España)

Abstract

Sustainability presents a paradox for business since it inherently includes tensions of interrelated yet conflicting goals: balancing short-term and long-term as well as economic, social and environmental performance. Hahn et al., (AMR,2015) argue managers that adopt a paradoxical frame for sustainability, while accepting the inherent tensions and considering more radical strategies, will adopt not adopt proactive strategies because they are hampered in their ability to implement workable solutions due to higher awareness of risk and tensions. However, Lewis & Smith (AMR, 2022) argue that paradox can be resolved if three conditions are present: an overarching vision of the future, differentiating and integrating structures to allow a rich diversity of perspectives and integration into actionable strategies, and guardrails that prevent groupthink and biased decisions. Since conflicting temporal frames are at the core of the sustainability paradox, we argue that organizations that subjectively interpret time as cyclically embedded in the past and aspirations for future will be able to develop the necessary conditions to resolve the paradox. In this regard, multigenerational family enterprises have an advantage since they are embedded in rich history/ tradition and aspirations for future transgenerational success. They make decisions in the present by subjectively drawing from rhetorical history and building on future aspirations for success. Family enterprises focus not only on financial returns but also on building socio-emotional wealth to preserve family harmony, community stewardship, and transgenerational success. Resolution of the sustainability paradox unleashes creativity and innovation to generate competitive advantage.

Sanjay Sharma is Dean of the Grossman School of Business at University of Vermont since 2011. Prior to UVM, he was Dean of the John Molson School of Business in Montreal Canada and the Canada Research Chair in Sustainability. He is a pioneer in corporate sustainability research having published 10 books and articles in journals including AMR, AMJ, SMJ, AMD, AMP, Journal of Marketing, O&E, Business & Society, etc. His awards include Distinguished Scholar Lifetime Award from the Academy of Management (2017) and the Fetner Fellowship from the University of Syracuse (2018). He serves on several Boards including the Global Responsible Leadership Initiative, Family Firm Institute, ISCTE Business School-Portugal, College of Business-University of Sharjah, and International Academy of Management.

Pramodita Sharma is the Schlesinger-Grossman Chair of Family Business at the Grossman School of Business, University of Vermont. She is a visiting scholar at the Family Business Center at Kellogg School of Management, USA, and the Indian School of Business, India, and is an advisory board member of the Jönköping International Business School (JIBS), Sweden. Dita served as the editor of Family Business Review from 2008-2017. Her research has been published in over fifty articles and ten books including Entrepreneurs in Every GenerationPatient Capital: The Role of Family Firms in Sustainable BusinessPioneering Family Firm’s Sustainable Development Strategies.