New research from Dr Mahdi Vesal has examined the tension between profitability and environmental sustainability in business, particularly within family businesses.
“Family firms have traditionally focused on financial outcomes such as profit, growth and market share,” Dr Vesal says. “But they now face increasing pressure from stakeholders and society to address issues like carbon emissions and resource depletion.”
Balancing these priorities is a key challenge for family businesses.
Dr Vesal’s study examined the role of top management team (TMT) heterogeneity – the diversity of a company’s senior leadership team – in shaping sustainable innovation practices.
“We found that TMT heterogeneity positively influences the adoption of sustainable innovation in family firms, which in turn enhances financial–environmental performance,” he explains.
The findings show that a range of managerial perspectives are a valuable resource for balancing short-term financial imperatives with long-term environmental commitments.
“It highlights the value of assembling diverse management teams, encouraging participative decision-making, and leveraging family involvement not merely for continuity, but also for environmental stewardship.”
