Transformational, Transactional, and Ethical Leadership in Sustainable Family Entrepreneurship: A Global Systematic Review

Abstract

Leadership plays a central role in the long-term sustainability of family enterprises, yet existing evidence is fragmented across contexts and methodologies. This systematic review synthesizes empirical findings on leadership practices that support sustainable family entrepreneurship. The objectives are to identify available evidence on leadership in sustainable family enterprises, describe the methodologies employed, and examine how leadership is perceived and enacted across global contexts. The review followed PRISMA 2020 guidelines. Searches were conducted on 28 January 2025 on Scopus, Web of Science, EBSCOHost, and ProQuest. Eligibility criteria included empirical studies, full accessibility, publication in English, non-duplicated records, and relevance to leadership in sustainable family enterprises. Twenty-six studies met the inclusion criteria. Data extraction focused on context, methodology, leadership evidence, and key findings. Studies spanning Asia, Europe, Latin America, Africa, and the Middle East indicate that leadership strongly shapes sustainability outcomes in family firms. Three core leadership dimensions emerged: transformational leadership, which promotes innovation, engagement, affective commitment, and continuity; transactional leadership, which supports governance, succession planning, operational control, and performance; and ethical leadership, which fosters trust, shared values, and social responsibility. Cross-cutting themes include gendered leadership contributions, succession risk management, and cultural influences. Sustainable family enterprises rely on multidimensional leadership integrating these approaches, reinforced by structured succession processes, value alignment, and human capital investment.

1. Introduction

Family entrepreneurship is characterized by unique and specific qualities that set it apart from non-family enterprises (Gallo, 1995; Jing et al., 2022; P. Marques et al., 2022; Ramadani & Hoy, 2015). Many scholars indicate that greater exploration across a number of dimensions of family entrepreneurship is warranted to enhance understanding and drive growth and sustainability (Bednarz et al., 2017; Cleary et al., 2019; Guo et al., 2024; Powers & Zhao, 2019; Soares et al., 2021).

Family firms have their specificities and unique qualities because they are anchored in a family’s vision, intentions, and behaviors with respect to family members’ ability and orientation to manage the growth of the business (Porfírio et al., 2020). Family businesses, as distinct from non-family businesses, mix family and business dynamics in a way that impacts decision-making, organizational strategies, and outcomes in sustainability over time (Arista Zavala & De la Garza Ramos, 2022; Chrisman et al., 2005; de la Rosa Alburquerque et al., 2009).

In family businesses, leadership occurs within the family and is at the core of continuity and business success, because where the firm goes is as a result of the family leader’s capacity to encompass economic objectives, family harmony, and community responsibility (Berrone et al., 2012; Díaz Bedoya et al., 2024). A distinguishing component is that family values often inform the firm’s strategic vision and support sustainability orientation in ways to encourage stewardship of resources, the reputation of the firm, and commitment over generations (Gómez-Mejía et al., 2007; Häußler & Ulrich, 2024; Kariyapperuma & Collins, 2021; Wang et al., 2022).

Family businesses may exhibit a range of complexities in their governance. The relationships that exist between members of the entrepreneurial family, in particular, can impact strategic decision-making and create friction or barriers to strategic options (Delfín-Ruiz et al., 2020; Garcés-Galdeano & Larraza-Kintana, 2024; Yu et al., 2023). Trust, commitment, and the adoption of succession strategies are also critical to ensuring the organization is able to adapt to changes and, thus, adopt sustainable practices (Lenguaza Alborno et al., 2024). Earlier researchers have also noted that sustainability-related initiatives in family businesses may get stymied by, inter alia, the resistance to change, a lack of professional managerial development, and inter-generational conflicts (Gërguri-Rashiti et al., 2024; Halasz et al., 2024; F. C. Marques et al., 2022; Miller et al., 2013).

Leadership then becomes an integral and influential factor in determining the innovation and sustainability that a family business can achieve over the long-term (Della Peruta, 2011; Efferin & Hartono, 2015). Research suggests leaders with transformational and entrepreneurial styles may positively influence sustainability strategies that facilitate sustainable development changes in the organization (Boscán Carroz et al., 2023; Chirinos Araque et al., 2017; Pinos Ramón et al., 2024). Alternatively, leaders with more conservative views may favor financial stability over sustainability, which could lead to long-term issues for the organization.

Family firms provide a substantial impact on the economies of many countries, according to existing studies (Birdthistle, 2024; Birdthistle & Hales, 2022; Fernández-Bedoya et al., 2023a; Kirmanen & Kansikas, 2013). They are an essential engine for economic growth in the regions in which they operate, and are also a fundamental source of employment, innovation, and long-term social direction—often being much more stable contributors than other forms of business (Fernández-Bedoya et al., 2023a; Galindo-Martín et al., 2023; Heredia et al., 2022). Their capacity to adapt to changes in market conditions, as well as their business focus on sustainability described by an intergenerational time-horizon, makes them important players both nationally and regionally (Fernández-Bedoya et al., 2023b).

Sustainability in family business leadership is a complex concept that brings together family value systems, a long-term oriented time horizon, and sustainability business strategies (Miroshnychenko et al., 2021). Compared with other leadership contexts, family business leadership is heavily shaped by family identity, intergenerational family cohesion, and a desire for continuity.

Several studies indicate that leadership within such enterprises can be categorized into three principal approaches:

Transformational leadership: This refers to leaders who inspire and motivate family members participating in the family firm to create positive change, support innovation, and promote individual and professional growth. It aspires to alter the family firm and its family members through the use of an inspiring vision, personal commitment, and an environment of trust and commitment (Fernández & Quintero, 2017; Meurer et al., 2024; Palalić & Smajić, 2022).

Transactional leadership: This is based upon a system of incentives or sanctions designed to stimulate follower performance and assist in achieving family firm goals. Transactional leadership espouses a structure that emphasizes supervision, control, and a hierarchical structure to maintain order and efficiency (Fernández & Quintero, 2017; Leiva Ojeda et al., 2025).

Ethical leadership: This denotes a leadership style that encompasses moral principles and values as honesty, fairness, responsibility, and respect. An ethical family leader is expected to combine organizational goals with the welfare of the collaborators in a transparent decision-making process and respect ethical principles and norms in the family business (Çetin, 2021; Kaptein, 2019; Sanchez-Famoso et al., 2023; Slavec Gomezel & Stritar, 2023).

Beyond their descriptive distinctions, transformational, transactional, and ethical leadership styles intersect conceptually within the specific context of sustainable family entrepreneurship. Sustainability in family enterprises is shaped not only by economic performance but also by the preservation of family values, long-term orientation, and intergenerational continuity. Transformational leadership aligns with sustainability frameworks by fostering innovation, learning, and adaptability (capabilities that are critical for navigating environmental, social, and market uncertainties across generations). Transactional leadership contributes by institutionalizing governance mechanisms, performance controls, and succession structures that ensure operational stability and accountability, which are essential for sustaining family firms over time. Ethical leadership, in turn, provides the normative foundation through which family values, trust, and social responsibility are embedded into strategic decision-making, reinforcing legitimacy both within the family system and toward external stakeholders.

In family enterprises, these leadership styles rarely operate in isolation. Instead, they coexist and interact dynamically, shaped by family involvement, cultural context, and generational stage. Understanding leadership in sustainable family entrepreneurship therefore requires moving beyond typological classifications toward an integrative perspective that explains how leadership practices simultaneously support economic resilience, social cohesion, and long-term continuity.

While family firms are consequential to the global economy, they have historically not been a topic of academic interest, particularly in studies to understand leadership in relation to family firms’ ability to continuously deal with their successor generation.

Despite the growing body of research on family businesses and sustainability, existing studies remain fragmented across disciplines, regions, and analytical levels. Prior research has often examined leadership, sustainability, gender dynamics, or succession processes in isolation, resulting in a dispersed evidence base that limits theoretical integration. Moreover, empirical findings frequently vary according to cultural and institutional contexts, making it difficult to draw coherent conclusions regarding how leadership styles systematically contribute to sustainable outcomes in family enterprises. Methodologically, studies employ diverse designs, samples, and analytical techniques, further complicating comparative assessment and synthesis.

As a result, there is limited consolidated knowledge that integrates leadership styles with sustainability-oriented outcomes specifically within family entrepreneurship. This lack of synthesis constrains both theoretical development and practical guidance for family business leaders. Addressing this gap requires a systematic review that consolidates empirical evidence, identifies dominant leadership patterns, and clarifies how leadership practices contribute to sustainability and continuity across family enterprises globally.

The purpose of this study is to systematically synthesize empirical evidence on leadership in sustainable family entrepreneurship, with particular attention to how leadership styles contribute to long-term continuity, succession processes, and sustainability outcomes in family-owned enterprises. By consolidating fragmented findings across disciplines and regions, this review aims to provide an integrated understanding of how leadership is conceptualized, operationalized, and empirically examined within the context of sustainable family business.

In this regard, the present study seeks to gather all available evidence concerning leadership in sustainable family enterprises. Accordingly, the following research questions were formulated:

• What evidence of leadership in sustainable family enterprises has been documented in indexed scientific journals?
• What methodology was applied in each of the identified studies?
• How is leadership perceived within sustainable family entrepreneurship and what were the key findings reported across the examined records?

The formulation of broad, synthesis-oriented research questions is intentional and methodologically aligned with the objectives of this systematic review. Given the fragmented, multidisciplinary, and context-dependent nature of research on leadership in sustainable family entrepreneurship, narrowly focused or hypothesis-driven questions would risk overlooking important patterns and interactions across studies. Exploratory research questions allow for integrative synthesis, enabling the identification of recurring leadership dimensions, methodological tendencies, and cross-contextual insights. This approach is particularly appropriate when the aim is not theory testing but theory consolidation and agenda setting within an emerging and heterogeneous body of literature.

Sustainable entrepreneurship refers to actions pertaining to the recognition, development, and exploitation of opportunities by individuals for the purpose of producing future goods and services that create economic, social and ecological value (Dean & McMullen, 2007; Schaltegger & Wagner, 2011).

This definition (which is increasingly referred to in the academic literature) is at the nexus of sustainable management and entrepreneurship. Sustainable entrepreneurship is distinguished from traditional entrepreneurship because traditional entrepreneurship is focused on economic development alone, whereas sustainable entrepreneurship seeks to manage the triple bottom line: economic, social and ecological objectives (Shepherd & Patzelt, 2011). In organizational practice, these objectives sometimes support each other in organizational management, but tensions and trade-offs often emerge among them, indicating the ambiguity and complexities of this kind of entrepreneurship.

This definition is based on two key aspects. The first relates to the entrepreneurial process itself, which consists of the stages of identification, development and exploitation of opportunities (Baron, 2006; Shane & Venkataraman, 2000). These stages are broadly similar for all entrepreneurial activities, but in the context of sustainable entrepreneurship they specifically relate to opportunities aimed at solving social or environmental problems, and therefore creating value along the three dimensions of the triple bottom line: social, ecological and economic (Cohen & Winn, 2007; Schaltegger & Wagner, 2011).

Secondly, sustainability-focused businesses, also called social enterprises, should not only be economically viable but also focused on pursuing a positive social outcome while decreasing their im-pact on the environment (Ocaña Patarón et al., 2023; Schaltegger & Wagner, 2011; Shepherd & Patzelt, 2011). Balance is critical to sustaining business in a socially-oriented venture, even though at times it may pose competing tensions.

Additionally, several researchers have examined the relationship between sustainable entrepreneurship and social entrepreneurship, noting some degree of similarity in their objective of addressing social and environmental issues and in how they conceptualize the entrepreneurial process (Bonfanti et al., 2024; Garófalo Valdiviezo & Arguello Pazmiño, 2024; Mathuva et al., 2025). However, substantive differences still exist. While social entrepreneurship generally will focus on a double bottom line in order to balance social and economic objectives, a resultant of sustainable entrepreneurship is a possible third balance—an ecological aspect (Eller et al., 2020; Vig, 2023; Yasir et al., 2022).

Despite this, one of the major challenges is the lack of broad reviews in the literature some years critical to exploring how leadership impacts the sustainability of family enterprises More broadly, while there is academic recognition for the role of leadership in sustain-ability for family entrepreneurial ventures, it has been examined in various literatures in disjointed fashion, leaving significant gaps and missing information in terms of its specific impacts collected metric in a single source.

For this reason, this systematic literature review aims to address this gap by identifying existing research while providing a conceptual framework to better understand how family enterprises can develop sustainable leadership styles that ensure competitiveness and continuity over time.

Accordingly, the study proposes the following objectives:

• To identify the available evidence on leadership in sustainable family enterprises published in indexed scientific journals.
• To describe the methodology applied in each of the identified studies.
• To examine how leadership is perceived within sustainable family entrepreneurship and to summarize the key findings reported across the reviewed records.

The conceptual framework guiding this review also recognizes the dynamic and temporal nature of leadership in family enterprises. Leadership practices not only shape sustainability outcomes but may themselves be reshaped over time by those outcomes, particularly across generational transitions. For example, sustainability-oriented achievements can reinforce ethical norms, influence successor selection, and recalibrate leadership approaches in subsequent generations. While the framework is presented in a structured manner for analytical clarity, these feedback loops and temporal dynamics are inherent to family business systems and inform the integrative interpretation of the findings.

2. Methodology

The study was conducted as a systematic literature review (Kitchenham, 2004; Petticrew & Roberts, 2006). The researchers followed the PRISMA methodology in order to provide the necessary rigor to transparently integrate and synthesize the findings in the literature and meet the study’s research objectives (Page et al., 2021). Given the nature of the study, there was no expectation it would meet registrations standards for prospective studies, so the systematic review was not registered. Like any other study, all procedures were followed and documented in the PRISMA checklist, which is accessible in the Supplementary Materials section.

More specifically, systematic literature reviews offer the unique opportunity to attain broad and deep understanding of leadership policies and practices pertaining to families and family businesses (and their purpose around sustainability) on a global scale. Systematic literature reviews provide an opportunity to gain a more holistic understanding of the topic and allow for recommendations for both research and practice.

2.1. Eligibility Criteria

Searches for this systematic review were performed across four databases: Scopus, Web of Science, EBSCOHost, and ProQuest. Searches were conducted on 28 January 2025. Five exclusion criteria were defined:

(a)

Criterion 1: Accessibility. Eligible records were those that could be directly downloaded from the selected databases using the credentials of Universidad César Vallejo.

(b)

Criterion 2: Language. Records published in English were included. Consequently, studies published in other languages were excluded.

(c)

Criterion 3: Article type. The review sought to include only empirical research articles. Therefore, other document types (such as literature reviews, editorials, theses, and similar) were excluded.

(d)

Criterion 4: Duplicates. Because searches were conducted across four databases, duplicate records were identified and discarded.

(e)

Criterion 5: Relevance. Each article reaching this stage was read thoroughly; only those reporting on leadership experiences within sustainable family enterprises were retained.

No publication-year restrictions were applied during the search process. The review intentionally included all available empirical studies indexed in the selected databases, regardless of year of publication, in order to capture the full evolution of research on leadership in sustainable family entrepreneurship and avoid temporal selection bias.

2.2. Information Sources and Search Strategy

Designated coding was assigned to each database: Scopus (S), Web of Science (W), EBSCOHost (E), and ProQuest (P). This coding was a strategy to clarify the representativeness of the results and also to mitigate possible reviewer bias. The selection of these databases ensured a high level of scientific rigor and provided a multidisciplinary scope appropriate for the study. Their inclusion also aimed to guarantee broad and systematic access to relevant research, since they contain high-quality indexed publications in the fields of entrepreneurship and management.

Table 1. Explored databases.

Search Code	Database	Access Date
S	Scopus	28 January 2025
W	Web of Science	28 January 2025
E	EBSCOHost	28 January 2025
P	Proquest	28 January 2025

presents the databases examined and the coding applied.

The search conducted included TITLE-ABS-KEY ((“leadership” AND “sustainable” AND “family entrepreneurship”) OR (“leadership” AND “family business” AND “sustainability”) OR (“sustainability” AND “family-owned businesses” AND “leadership”) OR (“entrepreneurship” AND “sustainability” AND “family firms” AND “leadership”) OR (“family business” AND “leadership” AND “sustainable development”) OR (“sustainable entrepreneurship” AND “family business” AND “leadership styles”) OR (“family enterprises” AND “leadership” AND “environmental sustainability”) OR (“leadership” AND “social sustainability” AND “family-owned businesses”) OR (“family businesses” AND “leadership” AND “economic sustainability”) OR (“entrepreneurial leadership” AND “sustainability” AND “family business”)). This search strategy ensured broad coverage of terms by considering multiple combinations of keywords related to leadership, sustainability, and family businesses, which helps capture different perspectives on the subject, including synonyms and alternative terms.

The search strategy prioritized broad leadership and sustainability terms to capture interdisciplinary research across entrepreneurship, management, and sustainability journals. While specific leadership styles such as “ethical leadership” and “transactional leadership” were not always explicitly included as standalone keywords, these constructs are commonly operationalized within broader leadership and sustainability frameworks in the literature. As a result, relevant studies addressing these leadership styles were captured through combinations of general leadership, sustainability, and family business terms. This approach reduced the risk of overly restrictive search while maintaining conceptual coherence with the objectives of the review.

Backward and forward reference screening was not conducted in this review. The decision was made to rely exclusively on database-driven searches to ensure methodological consistency and replicability. While reference screening can enhance coverage, especially in multidisciplinary fields, it was intentionally excluded to maintain a controlled and transparent selection process based solely on predefined search criteria and indexed database records. Nevertheless, the exclusion of backward and forward citation tracking may be considered a limitation, as it could have resulted in the omission of relevant studies published in adjacent disciplines or emerging outlets not fully captured by database indexing, particularly given the interdisciplinary scope of family business and sustainability research.

2.3. Selection Process of Studies and Data Extraction

On 28 January 2025, the five members of the research group met to conduct the searches in the selected databases. Each member performed the searches independently, identifying a total of 174 records before applying the inclusion criteria. Once this process was completed, the results were compared to verify possible discrepancies; however, no differences were found, since all members obtained the same 26 results. The selection of studies and the data extraction process were carried out without the use of specialized software.

Each filter applied contributed to refining the final results:

(a)

Criterion 1: Accessibility. A total of one hundred and three articles were removed under this filter. The exclusion of articles based on accessibility was primarily due to subscription and paywall restrictions. Although these studies met the thematic and methodological criteria, full-text access was not available through the institutional subscriptions of the authors’ university.

(b)

Criterion 2: Language. Although the search was conducted in English, two articles written in Turkish and one in Portuguese were identified and excluded.

(c)

Criterion 3: Type of article. Thirty records were removed because they corresponded to other literature reviews, opinion pieces, or similar formats.

(d)

Criterion 4: Duplicity. Since searches were performed across four databases, nine duplicated articles indexed in more than one source were removed.

(e)

Criterion 5: Relevance. A detailed content analysis of the remaining records allowed the identification and removal of three manuscripts that, despite meeting the previous criteria, were not considered relevant because they did not contribute to the research objectives.

2.4. List of Data

The searches conducted across the databases yielded eleven final records from Scopus, five from Web of Science (WoS), three from EBSCOHost, and nine from ProQuest, resulting in a total of twenty-six scientific sources that enabled the research objectives to be addressed. The complete process is presented in

Table 2. Initial and Final Search Results.

Process	Search Results
	SCOPUS	WoS	EBSCOHost	Proquest	Total
Initial search results	54	26	68	26	174
Criterion 1: Accessibility	41	19	40	3	103
Partial search results	13	7	28	23	71
Criterion 2: Language	0	0	3	0	3
Partial search results	13	7	25	23	68
Criterion 3: Article type	2	0	18	10	30
Partial search results	11	7	7	13	38
Criterion 4: Duplicates	0	3	3	3	9
Partial search results	11	4	4	10	29
Criterion 5: Relevance	1	0	1	1	3
Final search results	10	4	3	9	26

.

2.5. Assessment of Bias Risk in Individual Studies

The five members of the research team conducted the database searches using their institutional credentials. After gathering the data, the findings were compared, revealing that although the processes were carried out in parallel and by different individuals, the results were identical. This validation stage served as a key mechanism to ensure the reliability of the collected data, thereby reducing potential research bias in later analyses and strengthening the validity of the conclusions regarding the relationship between leadership, sustainability, and family entrepreneurship.

Although a formal inter-rater reliability coefficient (e.g., Cohen’s Kappa) was not calculated, reliability was strengthened through parallel and independent execution of all search and screening procedures by the five researchers. The identical results obtained across reviewers indicate full agreement at each stage of the selection process, minimizing subjective interpretation during inclusion and exclusion decisions. Given the absence of discrepancies, the calculation of an additional statistical reliability index was deemed unnecessary for this review.

2.6. Synthesis Methods

All retrieved documents were reviewed individually. After assigning a code to each record and identifying its full reference, information was extracted regarding the title, journal, year of publication, country where the study was conducted, methodology used, and the evidence related to leadership in sustainable family entrepreneurship, along with its key findings.

The recording of this information was carried out by all members of the research team using Microsoft Excel, ensuring proper organization. Finally, in order to present information that is both clear and accurate, and following the PRISMA protocol, Figure 1 (PRISMA flowchart) is provided.

Consistent with the PRISMA 2020 guidelines, the characteristics of the included studies (such as publication year, country, and methodological design) were not used as selection criteria but were documented and reported after the study selection process. This approach ensures transparency while avoiding a priori restrictions that could introduce selection bias. Geographic distribution was therefore treated as a descriptive outcome of the review rather than as a determinant of inclusion.

3. Results

This section presents the results of the systematic review by organizing the selected studies according to their bibliographic characteristics, methodological approaches, and substantive contributions to leadership in sustainable family entrepreneurship. The analysis begins with an overview of the identified evidence, followed by a synthesis of methodological designs and leadership-related findings across the reviewed studies.

To emphasize synthesis over enumeration, the descriptions presented in the results tables prioritize analytical relevance, while overlapping or repetitive elements across studies are intentionally condensed and interpreted at the subsection level rather than exhaustively repeated in tabular form.

3.1. Identification of the Available Evidence on Leadership in Sustainable Family Enterprises Published in Indexed Scientific Journals

Table 3. Identification and systematization of scientific evidence on AI-driven business decision-making published in Latin American journals.

Code	Citation	Title	Journal	Year of Publication	Country
S01	(Lukito et al., 2025)	Determinants of sustainable employee performance: A study of family businesses in Indonesia	Asia Pacific Management Review	2025	Indonesia
S02	(Ramirez-Lozano et al., 2023)	Leadership, Communication, and Job Satisfaction for Employee Engagement and Sustainability of Family Businesses in Latin America	Administrative Sciences	2023	Peru
S03	(Kaban, 2024)	Inclusive leaders for innovation in the founder stage and sibling partnership of family enterprises	Southern African Journal of Entrepreneurship and Small Business Management	2024	Indonesia
S04	(Gashi & Smajlaj, 2024)	The power of women in the success of business family: A case study of Kosovo, Albania and North Macedonia	Humanities and Social Sciences Letters	2025	Kosovo, Albania and North Macedonia
S05	(Al Obaidy et al., 2024)	Development of a new concept and definition of inheritance risk management in family businesses toward sustainability	International Journal of Advanced and Applied Sciences	2024	United Arab Emirates
S06	(Moravanská et al., 2023)	Young leaders as implementers of neuroscience innovations in family food businesses	Potravinarstvo Slovak Journal of Food Sciences	2023	Slovakia
S07	(Domańska et al., 2024)	Family firm entrepreneurship and sustainability initiatives: Women as corporate change agents	Business Ethics, the Environment and Responsibility	2024	Poland
S08	(Sanagustín-Fons et al., 2020)	Feminine and religious leadership. A long term company model	Cauriensia	2020	Peru
S09	(Ma et al., 2022)	Impact of Differential Leadership on Employee Zhengchong Behavior: A Complex Network’s Perspective	Sustainability	2022	China
S10	(Adams et al., 2019)	Exploratory qualitative study to understand the underlying motivations and strategies of the private for-profit healthcare sector in urban Bangladesh	BMJ Open	2019	Bangladesh
W01	(Oudah et al., 2018)	Determinants Linked to Family Business Sustainability in the UAE: An AHP Approach	Sustainability	2018	United Arab Emirates
W02	(Jamil et al., 2025)	Sustainability in family business settings: a strategic entrepreneurship perspective	Journal of Family Business Management	2024	Pakistan
W03	(Dolar et al., 2024)	The Intergenerational Succession of Leadership in the Family Business: The Change Succession Brings	International Journal of Organizational Leadership	2024	Slovenia
W04	(Rumanko et al., 2021)	Succession as a Risk Process in the Survival of a Family Business—Case of Slovakia	Risk and Financial Management	2021	Slovakia
E01	(Daw, 2013)	Exploring The Factors Affecting Family-Owned Enterprises (FOEs) Sustainability In Lebanon	Business Journal for Entrepreneurs	2013	Lebanon
E02	(Siakas et al., 2014)	Family Business: A Diagnosis and Self Therapy Model	International Journal of Entrepreneurial Knowledge	2014	Finland and Greece
E03	(Rosen et al., 2019)	Succession management success at PT Bakrie Brothers Tbk	Global Business and Organizational Excellence	2019	Indonesia
P01	(Zheng & Wong, 2016)	Competing for leadership and ownership: the Li & Fung Group’s legendary and strategy	Journal of Entrepreneurship in Emerging Economies	2016	China
P02	(Sunthonpagasit & Hanson, 2019)	Developing Sustainable Leadership Practices to Improve Employee Engagement through ODI: A Case Study of Thai Family-Owned Business	ABAC ODI Journal Vision. Action. Outcome	2019	Thailand
P03	(Ertuna et al., 2019)	Diffusion of sustainability and CSR discourse in hospitality industry. Dynamics of local context	International Journal of Contemporary Hospitality Management	2019	Turkey
P04	(Cater & Beal, 2015)	Servant Leadership in Multigenerational Family Firms	The Journal of Applied Management and Entrepreneurship	2015	United States of America
P05	(Bozer et al., 2017)	Succession in family business: multi-source perspectives	Journal of Small Business and Enterprise Development	2017	Australia
P06	(Jamil et al., 2023)	Exploring entrepreneurial qualities for the sustainability of family businesses in Pakistan	Journal of Family Business Management	2023	Pakistan
P07	(Chirapanda, 2019)	Identification of success factors for sustainability in family businesses. Case study method and exploratory research in Japan	Journal of Family Business Management	2020	Japan
P08	(Abdullah et al., 2023)	Leadership styles and sustainable organizational energy in family business: modeling non-compensatory and nonlinear relationships	Journal of Family Business Management	2023	Malaysia
P09	(Nwuke & Adeola, 2023)	Leadership transition and survival strategies for family-owned SMEs in an emerging economy	Journal of Family Business Management	2023	Nigeria

presents the 27 selected records, including each study’s code, citation, title, journal, year of publication, and country.

The collection of studies provides a broad international view of how leadership, succession, gender roles, and cultural context influence the sustainability of family businesses. Although the research spans regions as diverse as Asia, Europe, Latin America, Africa, and the Middle East, the findings reveal several common patterns that help explain long-term continuity in family enterprises.

Leadership emerges as one of the most consistent determinants of sustainability. Research from Indonesia, Peru and Southern Africa illustrates the importance of leadership behaviors and their impact on employee, performance, communication and innovation (Kaban, 2024; Lukito et al., 2025; Ramirez-Lozano et al., 2023). In Kosovo, Albania, North Macedonia, Peru, and Poland, research explicitly mentions the valuable contributions woman make to business continuity and strategic change, labeling women as crucial shapers of stability, ethical leadership and sustainability efforts (Domańska et al., 2024; Gashi & Smajlaj, 2024; Sanagustín-Fons et al., 2020). Research from Slovakia and China provides insights in young leaders and differential leadership as modes of organizations and how those approaches affect the organizations behavior and adaptability (Ma et al., 2022; Moravanská et al., 2023).

Succession is another prominent theme, with research from the United Arab Emirates, Pakistan, Slovenia, Slovakia, Australia and Indonesia pointing out that inter-generational succession requires planning with communication and risk management to plan and mitigate disruptions for strategic continuity (Al Obaidy et al., 2024; Bozer et al., 2017; Dolar et al., 2024; Jamil et al., 2025; Rosen et al., 2019; Rumanko et al., 2021). As weaknesses in organizations include succession, the leadership of the organization may not operate in a functional manner with intergenerational structures.

Succession is viewed as a structured circumstance, but also a highly relational circumstance shaped by the expectations of family and the traditions of the organization. Lastly, there are several studies that address sustainability through strategic entrepreneurship and organizational energy and the evidence from the studies conducted in the UAE, Pakistan, Nigeria and Malaysia showed that strategies that leverage analytical decision making, entrepreneurial qualities and leadership modeling would be key for long-term competitiveness and resilience (Abdullah et al., 2023; Chirapanda, 2019; Nwuke & Adeola, 2023; Oudah et al., 2018). At the same time case studies conducted in Thailand, Turkey and the United States show how CSR practices, organizational development interventions and servant leadership are discussed within the same case study about either strengthen internal culture or external reputation (Cater & Beal, 2015; Ertuna et al., 2019; Sunthonpagasit & Hanson, 2019).

A final group of studies focuses on cultural and institutional influences. Research from Bangladesh, Lebanon, Finland and Greece, China, Turkey, and Japan shows that local norms, family values, and market environments shape leadership styles, motivations, and sustainability strategies (Adams et al., 2019; Daw, 2013; Ertuna et al., 2019; Jamil et al., 2023; Siakas et al., 2014; Zheng & Wong, 2016).

Taken together, the full set of studies demonstrates that family business sustainability depends on effective leadership, well-managed succession, gender inclusion, strategic planning, and sensitivity to cultural context.

3.2. Description the Methodology Applied in Each of the Identified Studies

Table 4. Code, citation and methodology applied in each of the identified studies.

Code	Citation	Methodology
S01	(Lukito et al., 2025)	This research utilized a quantitative, cross-sectional survey approach. Data collecting commenced via Google Forms, and 250 full-time employees of Indonesian family firms provided the necessary data source. Structural equation modeling was conducted with SmartPLS 4 to facilitate analysis of the structural model. The sample encompassed small, medium, and large businesses in the growth stage and working, for the most part, in the manufacturing, trading, and service sectors.
S02	(Ramirez-Lozano et al., 2023)	The methodological design integrated qualitative, quantitative, and documentary methods. Information was collected directly from founders–owners and from other family members. This study also utilized directors and employees from two equivalent Peruvian firms, Arti S.L. and Tai Loy, for the comparative study. For the quantitative component, two non-probabilistic samples were created from surveys, with 368 employees from Tai Loy and 75 from Arti S.L.
S03	(Kaban, 2024)	A quantitative correlational design using PLS-SEM was implemented. Between April and December 2023, employees from four family-owned firms in North Sumatra completed online questionnaires. The firms that participated were in the founder stage and sibling-partnership stages and operated in the manufacturing and services industry.
S04	(Gashi & Smajlaj, 2024)	The research commenced with a thorough review of the literature in order to refine the original research problem and formulate hypotheses. Primary data were collected through an online survey and analyzed entirely in a quantitative manner. Statistical techniques included descriptive statistics, OLS regression, Pearson correlation and one-way t-tests. The sample included 490 women from Kosovo, Albania, and North Macedonia, who were randomly selected and interacted with online survey questions.
S05	(Al Obaidy et al., 2024)	A quantitative design was used to examine the impact of risks associated with the owner’s death on long-term continuity. Findings show that inheritance risk management is central to successful transitions and business sustainability. This approach enabled the development of a detailed framework for safeguarding family legacy and maintaining operational stability.
S06	(Moravanská et al., 2023)	Qualitative data were collected using structured, controlled interviews with young managers from small and medium-sized family food firms in Slovakia. The responses were analyzed statistically using text-mining techniques.
S07	(Domańska et al., 2024)	Data were collected from an online survey distributed between April and June 2021 to 7142 Polish family-business owners and managers. Because no official registry existed, the mailing list was developed from media sources, national registers, and family business foundations. The study obtained a 2.8% response rate, and half of the responding firms were still run by their founding generation.
S08	(Sanagustín-Fons et al., 2020)	This case study followed the organizational-development framework of Cummings and Worley. The first phase involved documentary analysis to establish the theoretical base and describe the 70-year history and current situation of Arti S.A., a Peruvian family SME founded by a German immigrant. The second phase consisted of a survey conducted in summer 2018 assessing employees’ perceptions and job satisfaction using Hofstede’s organizational culture model.
S09	(Ma et al., 2022)	Drawing on social comparison theory, this study constructed a network evolutionary game model to examine how differential leadership shapes Zhengchong behavior in family firms. Numerical simulations were run to identify factors influencing employee strategy choices. Results indicate that the extent of leader favoritism affects employees’ likelihood of engaging in Zhengchong behaviors.
S10	(Adams et al., 2019)	This qualitative exploratory study was undertaken across three major cities in Bangladesh so that heterogeneous experiences of access and utilization of health care services would be captured. Data collection took place from September 2013 to March 2014 and included interviews with 80 participants, including government actors, private-sector practitioners and service users. Key informant interviews were also conducted with professional associations and representatives from the pharmaceutical-negotiating groups (Pharmaceutical Industry of Bangladesh) and the Private Clinic Owners’ Association across the district of Kushtia.
W01	(Oudah et al., 2018)	The study utilized the Analytical Hierarchy Process (AHP), which is a decision-making analysis that was used to classify and rank sustainability success factors in UAE family firms. This study collected data through interviews with participants of twelve medium and large family businesses.
W02	(Jamil et al., 2025)	A qualitative research design using twelve semi-structured interviews was developed in order to study family business owners’ definitions of sustainability, along with their sustainability-related practices, motivation, attitudes, and behaviors.
W04	(Dolar et al., 2024)	This qualitative research examined intergenerational succession in medium-sized manufacturing family firms in Slovenia. A total of six cases were analyzed using semi-structured interviews with three individuals in each company: the incumbent, the successor, and the family representative. The analysis of the transcriptions allowed for the identification of repeating themes.
W05	(Rumanko et al., 2021)	Between March and September 2020, semi-structured interviews were carried out with 74 Slovak family-business owners. The interviews focused on the four succession stages: initiation of succession, choosing a successor, transferring knowledge, and transferring ownership. Text-mining analysis was used, and visualizations were created using conceptual scatter diagrams.
E01	(Daw, 2013)	This study was based on a survey-based, mixed-methods approach, which was supplemented by semi-structured interviews with 50 owners, managers, and consultants from ten family businesses in greater Beirut, as well as included focus groups to supplement the responses given the social nature of decision-making in Lebanon.
E02	(Siakas et al., 2014)	A mixed-methods approach was used, a quantitative survey of 200 family firms from Finland and Greece was utilized and was supplemented by qualitative site visits and 20 interviews. Both of these approaches helped develop a diagnostic and self-therapy model for family enterprises.
E03	(Rosen et al., 2019)	A single case-study method was utilized, starting with direct observation of activities related to succession, followed by interviews of 11 senior executives. A variety of secondary sources (e.g., annual reports, company documents, photographs, and industry research) were also reviewed, in addition to readings about succession in family firms.
P01	(Zheng & Wong, 2016)	A case study of Sitti Yont Group Co., Ltd., a family business in Thailand, studied sustainable leadership and its relationship to employee engagement. An organizational-development intervention based on appreciative coaching was designed and executed. Participants were interviewed pre- and post-intervention, and engagement was measured pre- and post-intervention.
P02	(Sunthonpagasit & Hanson, 2019)	Evidence was gathered through case studies of Hilton Worldwide, its Turkish subsidiary, and a local hotel chain. Executive interviews served as the main data source, complemented by extensive secondary documentation.
P03	(Ertuna et al., 2019)	Empirical evidence is generated through case studies covering Hilton Worldwide Holdings Inc. (Hilton), its Turkish subsidiary and a local hotel chain to ensure data triangulation. Primary data were collected through interviews with the executives of the selected case hotels, which was supported by extensive secondary data.
P04	(Cater & Beal, 2015)	The Organizational Leadership Assessment (OLA) was used to determine the presence of servant leadership. A qualitative case study with semi-structured interviews compared firms exhibiting servant leadership with those that did not.
P05	(Bozer et al., 2017)	The study used an explanatory qualitative design with two stages: 16 interviews in the first phase and 41 prospective case study interviews in the second. All participants came from Australian family firms undergoing or approaching generational succession.
P06	(Jamil et al., 2023)	A qualitative case-study approach was used to examine which entrepreneurial traits support the long-term sustainability of Pakistani family firms. In-depth analysis allowed exploration of the characteristics enabling business longevity.
P07	(Chirapanda, 2019)	This qualitative study examined 15 Japanese family businesses across industries such as food, manufacturing, services, handicrafts, pharmaceuticals, and confectionery. Snowball sampling was used to recruit participants. Person-to-person interviews were conducted to understand business structures and succession processes.
P08	(Abdullah et al., 2023)	A dual-stage analytic approach combined Structural Equation Modeling (SEM) with Artificial Neural Networks (ANN). Data were collected through a questionnaire completed by 528 employees in Malaysian family firms.
P09	(Nwuke & Adeola, 2023)	A qualitative multiple-case study was undertaken, involving founders from three medium-sized Nigerian family firms. Semi-structured interviews and company documents were used to examine leadership-transition practices.

summarizes the methodological characteristics of all selected studies on family business sustainability, leadership, succession, and organizational behavior. Each entry outlines the research design, data collection techniques, sample characteristics, analytical tools, and contextual details reported by the authors. The studies span a wide range of qualitative, quantitative, mixed-methods, and model-based approaches, reflecting the diversity of strategies used to examine family enterprises in different cultural and economic settings. The summary includes information taken directly from each article, organized by code and citation number, to provide a clear and comparable overview of how the research was conducted.

The differences in methodology above show how complex studying sustainability in family firms can be. In most cases, a quantitative methodology is used especially when in relation to employee behavior, leadership, and performance. In both the Indonesian and Southeast European context, researchers used surveys, structural equation modeling, and correlational designs to capture generalizable patterns that could occur in a larger sample of managers and employees (Gashi & Smajlaj, 2024; Kaban, 2024; Lukito et al., 2025). Quantitative studies focusing on risk and transition management for example utilized a risk framework from statistical analysis in the UAE (Al Obaidy et al., 2024). Perhaps the most complex study designs that focus on family business modeling include designs utilizing network simulations, as well as dual-stage SEM with Artificial Neural Networks to examine leadership behavior and organizational dynamics from studies in China and Malaysia (Abdullah et al., 2023; Ma et al., 2022).

Qualitative studies also represent a significant proportion of methodological diversity. Several studies examined leadership succession, motivations, and organizational culture with interviews in examining the topic in Slovenia, Slovakia, Nigeria, Pakistan, and Japan (Chirapanda, 2019; Dolar et al., 2024; Jamil et al., 2023; Nwuke & Adeola, 2023; Rumanko et al., 2021). Case studies provided insight into longer term organizational development, leadership transitions, or sustainability initiatives, through case studies in Peru, Thailand, Turkey, and the United States (Cater & Beal, 2015; Ertuna et al., 2019; Sanagustín-Fons et al., 2020; Sunthonpagasit & Hanson, 2019). Cases that incorporated multiple data sources and evidence derived from archival analysis provided additional awareness of family firms evolving, an example being the context of China, and in the examples of both Finland and Greece (Siakas et al., 2014; Zheng & Wong, 2016).

Mixed-methods approaches appeared in studies that integrated surveys, interviews with evidence based on documentary analysis to examine leadership and employee engagement in Peruvian firms and in cross-national studies that included Finland and Greece (Ramirez-Lozano et al., 2023; Siakas et al., 2014). Exploratory qualitative studies, such as the one being undertaken in Bangladeshi healthcare settings, expanded the scope by examining some institutional and contextual factors affecting private-sector performance (Adams et al., 2019).

Finally, variations in innovatively specific methods, including the Analytical Hierarchy Process used in the UAE and text mining applied in Slovakia, demonstrate the growing sophistication of analyses in family business studies and the expanse of rigor (Moravanská et al., 2023; Oudah et al., 2018; Rumanko et al., 2021).

All studies completed represent a broad and rigorous methodological landscape to better understand leadership, succession, employee behavior, and sustainability in family-held businesses in varying global contexts.

3.3. To Examine Identify the Evidence of Leadership in Sustainable Family Entrepreneurship, and Key Findings Across the Reviewed Records

Table 5. Code, citation, evidence of leadership in sustainable family entrepreneurship, and key findings.

Code	Citation	Evidence of Leadership in Sustainable Family Entrepreneurship	Key Findings
S01	(Lukito et al., 2025)	The research indicates that a transformational leadership style has a substantial positive impact on employee performance. Effective leaders who involve employees in decision-making and foster open communication can enhance employee loyalty and performance. The study emphasizes the importance of leadership in creating a work environment that values employee input and promotes ethical conduct. It is suggested that family firms should adopt a transformational leadership approach to improve employee engagement and organizational trust.	1. Job satisfaction is identified as the most significant factor affecting employee performance. Factors such as fair compensation, motivation, and a supportive work environment are crucial in enhancing job satisfaction and, consequently, employee performance. Family firms are encouraged to prioritize employee well-being and implement policies that promote a positive work environment to foster job satisfaction and improve employee retention. 2. The work environment plays a critical role in moderating the relationship between employee performance, job satisfaction, and leadership style. A conducive work environment can amplify the positive effects of effective leadership and job satisfaction on employee performance. This highlights the importance of family firms investing in creating a supportive and comfortable work environment to enhance employee productivity and overall organizational success. 3. Motivation and compensation are key determinants of employee performance in family businesses. Fair and competitive compensation practices, along with creating a motivating work environment, can significantly influence employee motivation and performance. The study suggests that family firms should focus on implementing effective reward systems and motivational strategies to enhance employee engagement and improve overall performance outcomes.
S02	(Ramirez-Lozano et al., 2023)	The research demonstrates that leadership is a paramount component of organizational success, and the same is true for Peruvian family businesses. Authentic leadership increases employee engagement through the establishment of an ethical climate based on employee trust in management. When employees feel their leaders are credible and trustworthy, they are more willing to invest in the firm and its long-term success. Communication is also a critical component of engagement. It serves as the conduit through which leaders and employees share their efforts and coordinate efforts toward achieving organizational goals. Open and transparent communication can foster increased engagement, job satisfaction, and commitment to the organization. In addition, open and transparent communication reduces the anxiety that comes with familial dynamics that may arise in family-run businesses. Satisfied employees have higher productivity, engagement, and loyalty, which reduces or greater rewards (lower turnover, less costs from recruitment and training).	1. The study found that participatory and authentic leadership styles, effective communication, and high job satisfaction were central to talent retention in two family-owned small and medium-sized enterprises in Peru. These factors contribute to substantive employee engagement, which is critical for the sustainability of family business. 2. The results imply that Peruvian family businesses can leverage quality leadership, open communication, job satisfaction; opportunities for professional advancement; competitive remuneration; and a supportive working environment to enhance their long-term sustainability and contribute to national development. 3. Different leadership styles—transformational or transactional, and even laissez-faire in specific contexts—can lead to enhanced communication, job satisfaction, and engagement as important pillars for the long-term sustainability of family businesses.
S03	(Kaban, 2024)	In addition to trust and engagement, inclusive leadership will enhance innovative behavior, particularly at the sibling partner stage of the business and in service businesses. Inclusive leaders embrace diversity, equity, and fairness in the workplace leading to a sense of belonging and intentionally prompting employees to share their perspectives. Inclusive leaders foster a healthy work environment that encourages employees to want to provide value to the firm and take risks. A leader’s effectiveness is critical for innovation and helping family businesses engage change in order to become competitive and build long-term success.	1. Inclusive leadership has a positive effect on innovative behavior. 2. Affective commitment mediates the relationship between inclusive leadership and innovative behavior. 3. Learning culture does not predict innovative behavior and is not a mediating variable.
S04	(Gashi & Smajlaj, 2024)	The study indicates that family support is a crucial factor for women in advancing to leadership roles in family firms. Cultural aspects also reinforce women’s capacity to lead. Education is another critical factor for women’s preparedness, as most women enrolled in formal education before entering leadership roles and continued to advance their skills with ongoing education. Their leadership choices contribute to sustaining and reinterpreting local traditions in the family firm’s context. Women also help develop the business by identifying adaptive opportunities. Family support is also an important emotional and practical source of support, reducing anxiety and helping women negotiate barriers more effectively.	1. The support from one’s family plays an important role in women’s success in leadership positions in family businesses, being the most important resource to overcome challenges and sustain success in long-term leadership. 2. Education is also seen as central to building women’s leadership capability in family firms by allowing women to develop analytical frameworks and scientific knowledge essential for decision-making. 3. Dimensions of culture (to include customs and traditions) continues to play a role in women’s direct family business participation, with shifting norms recognizing women are motivated and capable leaders, which was not always the case in that sphere of family business previously.
S05	(Al Obaidy et al., 2024)	Effective Inheritance Risk Management requires a holistic approach that reflects the goals, values, and capabilities of each family member, ensuring alignment with the long-term vision of both the business and the family constitution. This type of approach is important for mitigating the risks inherent in family transition of ownership, wealth, and leadership. It relies on proactive planning, robust governance systems, and sound succession processes.	1. Managing risk relating to inheritance and ensuring smooth passage of business across generations is essential to sustainability of family businesses over time. 2. IRM acts as a moderating mechanism to understand the impacts of legacy and risk management on sustainability. 3. Our work encourages the production of policy and formal documents, awareness workshops, specialized training, and enhanced governance methods to improve performance and social responsibilities of organizations.
S06	(Moravanská et al., 2023)	Neuroscience-informed practices that are new are beginning to be integrated into family-owned food operations. It is noteworthy that, among the younger managers, women are more frequently using neuroscience principles to promote positive workplace conditions and cultivating people-focused leadership. Young male managers are oriented more toward the development of staff, focusing on learning processes.	1. There is a slow rise of neuroscience-inspired management styles emerging. 2. Emerging leaders in Slovakia’s small and medium food enterprises are attempting with new HR practices inspired by neuroscience approaches. 3. Women managers are applying neuroscience approaches to improve working conditions, and building interpersonal leadership, while men managers use neuroscience to inform staff and their development and the learning processes.
S07	(Domańska et al., 2024)	Social role theory and upper echelons theory suggest that women CEOs may be change agents in shaping the way entrepreneurial orientation (EO) is realized into sustainability efforts. Women’s increased moral sensitivity, empathy, and concern for others may lead women to demonstrate more altruistic behavior in organizational leadership roles.	1. The results indicate that only one EO dimension (innovativeness) has a significant direct association with sustainability efforts, and that the CEO’s gender affects the relationship between proactiveness and autonomy and sustainability outcomes. 2. The findings also support a positive relationship between innovativeness and sustainability practices. Generally, firms with an innovation-oriented strategy have greater ease in developing sustainability practices. 3. This research highlights practical implications for family business owners in regard to developing the innovative aspects of entrepreneurship to address social and environmental issues via meaningful sustainability practices.
S08	(Sanagustín-Fons et al., 2020)	This study aims to analyze an effective family business with an ethical and religious management style and philosophy as it relates to its female designer and female successor. The founder’s and successor’s civil, physical presence, coupled with their form of leader followership, have contributed to the sustainable growth of the family business in light of ethical and religious management. Here, the founder exhibited closer proximity and a more personal style; however, the successor introduced their own distinctive religious and innovative creativity. The founder exemplified a style of servant leadership emphasizing humility, austerity of self, and caring for the employees, while also emphasizing the company motto of “Ora et labora,” which represented an ethos of quality, service, and commitment to society.	1. Ethical management and a specific style of powerful leadership tied to an organizational culture represent two key variables that guarantee a successful family business. 2. Women leaders can bring unique and distinctive understandings and priorities that serve to advance positive social outcomes and inherent ethical accountability. 3. Family businesses possess a collective sense of a strong and deep organizational culture.
S09	(Ma et al., 2022)	Differentiated leadership signifies a particular leadership style characteristic of many Chinese organizations, where the leader separates employees into two categories, “insiders” and “outsiders,” with the “insiders” being employees who are considered to be closer to the leader, while those considered “outsiders” have less proximity to the leader. For those who may be recognized as “insiders” they will receive more attention, especially when an “insider” does well. “Outsiders” typically get much less attention from the leader than “insiders.” The typical response by “insiders” is not only to respond positively to the leader when they exhibit outstanding performance, but usually the “insider” makes significant individual contributions and demonstrates higher levels of organizational citizenship behavior. If applied in moderation this style of selective norm, or preferential treatment by a leader can create supportive behavioral norms for Zhengchong implying that this leader will increasingly increase behaviors to make themselves visible for recognition of prior outstanding performance. This may propel the “insiders” to increase productivity, engage in proactive creative-thinking ideas or behaviors within the organization that positively affects organizational behavior development.	1. Simulation outcomes indicate that the extent of preferential treatment significantly affects Zhengchong behavior. For contemporary family firms, a balanced level of partiality appears most effective in fostering this behavior. 2. Employees’ awareness of a differential environment also strengthens the tendency toward favoritism. Leaders play a crucial role in motivating employees to demonstrate their skills and improve their performance. 3. By applying complex network theory, the study offers novel insights into how differential leadership shapes Zhengchong behavior, confirming that moderate favoritism combined with employee perceptions of differential treatment can stimulate positive behavioral responses.
S10	(Adams et al., 2019)	While financial gain is a major incentive for entering and operating private healthcare services, the study also highlights several non-monetary motivations—such as a desire to assist underserved populations, personal ambition, social status aspirations, obligations to uphold family business traditions, and reactions to difficult family circumstances. The analysis is framed using the Business Policy Model, which includes: the design of products and services, along with efforts to make them appealing through discounted packages and stronger doctor–patient relationships; strategies to navigate the market environment, including the use of medical brokers, referral fees, and pharmaceutical incentives; and organizational capabilities, such as compensating for workforce shortages by depending on public-sector doctors, specialists, on-call staff, trainees, unlicensed nurses, and referrals to public hospitals for complex cases.	1. With public healthcare capacity limited and demand rising rapidly in urban Bangladesh, participation from private for-profit providers is essential for moving toward universal health coverage. Given the informal nature of the sector and weak regulatory and financing structures, expansion must occur slowly and carefully. 2. This qualitative, exploratory research is one of the first attempts to uncover the motivations and operational strategies of urban private-sector healthcare providers in Bangladesh. One notable challenge was respondents’ reluctance to reveal their business practices. 3. Achieving SDG 3—universal health coverage by 2030—remains difficult in Bangladesh’s diverse healthcare landscape, especially amid rapid urbanization, including a 3% annual growth rate in cities and an even higher 7% growth rate in low-income settlements.
W01	(Oudah et al., 2018)	The research indicated that for large and medium sized family firms in the UAE to remain sustainable to sustain, it is necessary to focus on several important factors. Large firms typically understand the risks associated with poor transitions and tend to think long-term, although they should put more emphasis to build family values and capital. Conversely, medium firms appear to have lesser awareness of transition vulnerabilities, think in shorter planning horizons, and often focus on short-term financial gain. This indicates a need for better succession systems, more direct strategic oversight, and better governance.	1. While big family firms in the UAE typically prepare for the future, they are encouraged to reinforce the role of shared family values and family capital in their long-term strategies. 2. Medium family firms must give greater importance to succession planning, strategic design, and effective governance structures to secure their long-term survival. 3. The study identifies key sustainability factors and their importance for family businesses in the UAE, which can help business leaders and policymakers.
W02	(Jamil et al., 2025)	The research indicated that family business leadership is evidenced through other parameters including: the leader taking charging and ownership of sustaining the business; leadership styles and values affect the culture of the business; the importance of effectively leading and making decisions as central to serving the family; as well as incurring the importance of maintaining consistent culture through consistency in leader behaviors or practices.	1. Sustainability in family businesses is important, but awareness of sustainability processes and procedures is low, and implementation is not systematic. 2. Strategic entrepreneurship can be a mechanism for improving sustainability in family businesses. 3. The study proposes a revised model of family business sustainability, highlighting key dimensions like resources, strategy, leadership, capabilities, organizational structure, and environment.
W03	(Dolar et al., 2024)	The paper explores leadership succession in Slovenian family businesses, highlighting the importance of understanding the succession process and its impact on both the business and family relationships. It emphasizes the complex dynamics between the incumbent (IC) and the successor (SR) and the necessity of balancing the outgoing leader’s willingness to step aside with the successor’s readiness to take over. The study also acknowledges the influence of family members, particularly spouses, in the succession process.	1. The study reveals varying attitudes toward succession among participants, with incumbents often hesitant to relinquish control and successors approaching the process with a mix of optimism and caution. 2. Succession in family businesses is a multifaceted process involving personal, familial, and business considerations, with key factors including planning, fairness, trust, and the willingness of incumbents and successors. 3. The research identifies different types of successor commitment (affective, normative, calculative, and imperative), with affective commitment being the most prevalent among the cases studied.
W04	(Rumanko et al., 2021)	The document focuses on the risk factors in the succession process rather than explicitly detailing “evidence of leadership. “Therefore, this section will discuss factors that influence the leadership transition and potential challenges: The study emphasizes the importance of the owner’s approach to succession planning, including their willingness to address the topic, develop a plan, and prepare the successor. Effective leadership transfer is linked to open communication, emotional readiness of the owner to relinquish control, and the successor’s preparedness. Risks to leadership transition include delaying succession, lack of a clear plan, inadequate successor preparation, and family conflicts.	1. Only 48.64% of family business owners in Slovakia have initiated the succession process. Many owners postpone succession planning, lack a written plan, and primarily address succession in later stages of ownership. Key factors influencing succession include the agreement between owners and successors, the owner’s age, and the company’s time on the market. 2. Successor selection in Slovak family businesses often favors direct descendants, especially sons, with successors frequently being groomed from childhood. Owners emphasize the importance of education and practical experience for successors, along with developing an emotional connection to the company. The successor’s education and active involvement in the business are crucial for a smooth transition. 3. The research identifies several risk factors in family business succession, including inadequate planning, unclear processes, family conflicts, and insufficient successor preparation. Effective succession requires addressing these risks through proactive planning, clear communication, and professionalizing the succession process. The study highlights the need for family businesses to view succession as a critical risk management process to ensure long-term survival.
E01	(Daw, 2013)	Michel Pharaon, a parliamentarian and owner of Pharaon Homelines, highlights the complexities of transferring family businesses across generations. He emphasizes the need for planning ownership continuity and management succession to overcome challenges and ensure successful expansion. Marwan Assaf, chairman of the advisory board of the Institute of Family and Entrepreneurial Business, notes that family-owned enterprises are more profitable and have higher market values compared to non-family-owned enterprises. According to economist Marwan Iskandar, this is due to the fact that people tend to work harder and be more careful when they are acting for themselves.	1. The study confirms that innovation, leadership, and proper succession planning are critical for the sustainability of family businesses. 2. Family-owned businesses in Lebanon have shown significant growth and resilience, contributing substantially to the economy by creating job opportunities and adapting to environmental changes. 3. Effective succession planning is identified as a major challenge for Lebanese family-owned businesses, with the transfer of ownership and management across generations posing significant complications.
E02	(Siakas et al., 2014)	The Family Business in the New Economy: How to Survive and Develop (FAMBUS) initiative aims to develop a diagnostic and self-therapy process that addresses critical family business issues—including resolving family conflicts, facilitating organizational modernization and helping family business leaders navigate environmental and global changes. Its predecessor led to the development of trusting relationships and high-performance teams, and now serves as an external, objective process that assists family business leaders in clarifying hidden tensions or unresolved issues. A by-product is that it leads family members to develop their own pathways to improvement—not just economically but also in terms of longevity and stability.	1. Family firms operate as intricate systems that depend on sound strategic planning, effective leadership, and dedicated personnel to achieve success. 2. Unlike non-family organizations, these firms must constantly balance two interacting and sometimes competing domains: the emotional sphere of the family and the professional demands of the business. 3. Among the core challenges they face, succession emerges as one of the most critical, alongside strategic decision-making, intra-family disputes, and the complexities of daily operations.
E03	(Rosen et al., 2019)	Aburizal Bakrie (the current chairman of the company and successful entrepreneur) is cited as having an intuitive understanding of business context along with the ability to adjust to changes in government strategy and domestic economic growth. The company contends that all family members who are employed by the family company along with any senior non-family executives must possess strong entrepreneurial characteristics. It is by using the critical entrepreneurial traits of family members and any other senior leaders that sound decisions about investments, growth in new lines of business, and resource allocation can be made—while also directing employees toward the company’s vision.	1. The review of BNBR’s trajectory indicates four central elements that have supported its long-term continuity: a clear commitment to sustainability, a strong entrepreneurial orientation, consistent alignment with the firm’s cultural principles, and a carefully organized approach to managing leadership succession. 2. The organization’s cultural identity—captured in the Trimatra Bakrie framework—is built around three core ideas: being Indonesian in essence, generating positive impact, and fostering unity. 3. BNBR’s succession management process follows a pattern of planning, organizing, actuating, and controlling (POAC), ensuring a smooth transfer of leadership across various managerial levels.
P01	(Zheng & Wong, 2016)	The Li & Fung Group, a family-controlled multinational group of companies, has developed by maintaining strong family control and passing leadership within the family. Victor Fung, the third-generation leader, notes that many family enterprises reach a stage where the patriarch needs to transfer control to the next generation. The paper examines the many facets of family ownership, control, and continuity mechanisms, through understanding the Li & Fung Group’s experiences across four generations.	1. The study identifies key ways for resolving family conflict and ensuring business continuity in family businesses. 2. Li & Fung effectively adopted the “pruning the family tree” and “listing and de-listing” mechanisms during critical stages of succession and development, contributing to its century-long success. 3. The research highlights that family businesses are dynamic, create jobs, provide services and products, and stimulate economic development by fostering entrepreneurship.
P02	(Sunthonpagasit & Hanson, 2019)	The case highlights the Sitti Yont Group Co., Ltd., a family-owned Thailand company, where decision-making is heavily influenced by the father (CEO/Owner) and family members, often contributing to non-family workers feeling marginalized and disengaged. Further, the organization is coping with a outdated working culture and human resource management. The new generations decided the family business would continue with the family.	1. Sustainable leadership practices can be applied in less developed countries like Thailand to improve employee engagement. 2. Employee engagement and sustainable leadership practices are mutually reinforcing, fostering a collaborative working environment that encourages innovation. 3. Family-owned businesses often face challenges in human resource management due to the complex dynamics of family involvement.
P03	(Ertuna et al., 2019)	The paper discusses how multinational companies (MNCs) and local hotels collaborate on sustainability and corporate social responsibility (CSR) practices in developing countries like Turkey. It emphasizes the importance of aligning global CSR strategies with local institutional logics, such as community values and norms. Hotel managers are encouraged to adapt their CSR practices to local needs by engaging with various stakeholders, including NGOs and government bodies, to ensure that their sustainability initiatives are relevant and effective.	1. Some CSR and sustainability logics from the headquarters of multinational companies are adopted by local affiliate hotels, but not all. 2. Local affiliate hotels aim to gain local legitimacy in their host environments, which sometimes conflicts with the standardized formats imposed by their headquarters. 3. The values of the family and the family business headquarters influence the CSR and sustainability strategy and the logics that reflect the local context in local family-owned hotel chains.
P04	(Cater & Beal, 2015)	The research focuses on servant leadership, which occurs within multi-generational family enterprises, examining these facets of complexity in terms of multi-goals, managing conflict, and succession. Servant leaders value the benefits of serving others, utilizing trust, and developing cooperation. Your research demonstrates how servant leadership may facilitate the success of family enterprises, creating a balanced engaged employee and long-term sustainability.	1. Servant leadership may benefit multi-generational family firms by addressing complex goals, resolving conflicts, and aiding in succession. 2. Servant leaders prioritize serving others, which can increase trust, citizenship behavior, collaboration, and job satisfaction. 3. The study found that servant leaders are actively engaged with employees and family, earning their respect through commitment.
P05	(Bozer et al., 2017)	The research studies the personal/professional elements that create successful leadership transition in family enterprises, analyzing from the perspectives of four stakeholders: the current leader, the successor, family members, and non-family employees. The interviews I conducted with incumbents and successors emphasize the importance of maintaining family bonds, a flexible family culture, and unique resources created from “familiness,” enabling successful transitions.	1. Insights from both incumbents and successors emphasize that a unified family environment, an adaptable cultural foundation, and the distinctive advantages of families contribute positively to succession outcomes. 2. Several individual factors (such as early exposure to the family business and experience gained outside the firm) shape the successor’s level of commitment, which may evolve once they step into a leadership role. 3. Among the professional elements, business size emerged as the factor most consistently identified by incumbents, successors, and non-family participants as significantly influencing how the succession process unfolds.
P06	(Jamil et al., 2023)	The research highlights the role of entrepreneurs in family businesses, emphasizing how their attributes are vital to business growth and success. Entrepreneurs are important to family business sustainability. The study investigates how entrepreneur attributes, such as motivation and personality, contribute to family business sustainability. This research focuses on the context of Pakistan, where family business sustainability is a concern.	1. Four main themes were identified as key elements for family business sustainability: cognitive characteristics, leadership role, motivation, and personality traits. 2. The study highlights that the sustainability rate of family businesses is low, especially with generational change. 3. Previous studies have focused on entrepreneurs’ success factors and demographic characteristics in relation to business performance, but there is a need for more research on entrepreneurial qualities for family business sustainability.
P07	(Chirapanda, 2019)	Japanese family businesses have taken a leading effort to enhance human capital through workforce development, hiring younger employees and local people, and embedding employee welfare. Current senior employees are essential for preparing the next generation by mentoring prospects and enabling their understanding of the firm’s values and operating norms. When a male heir was not an option, certain families would employ sons-in-law in leadership segments of the firm. Sometimes these sons-in-law would add new questions and approaches to firm leadership through their previous experiences, which can foster improved management and help maintain family ownership as compared to managing ‘family capital’.	1. The study highlights several essential elements for long-term sustainability, including ongoing innovation, the development of competitive advantages, effective leadership with strong team coordination, and cultivating solid ties with the surrounding community. Together, these components are crucial for ensuring successful generational transfer in family firms. 2. Family enterprises focus on strengthening their core capabilities as a way to position themselves competitively in both domestic and international markets. 3. To enhance their competitive standing, the study identifies two primary strategic approaches: pursuing cost efficiency and differentiating themselves through the constant creation of new products.
P08	(Abdullah et al., 2023)	The study examines the effects of leadership styles on the sustainability of organizational energy in Malaysian family companies with organizational ambidexterity as a mediation factor. Leadership styles help explain a leader’s attendance in influencing their employ yes and adjusting for internal and external pressures. The research recognizes that organizational ambidexterity is important as it pairs together exploratory innovation and exploitative efficient usage of existing resources, all of which assist firms in responding to changes.	1. Leadership styles have a positive and significant relationship with long-term organizational energy. 2. Organizational ambidexterity mediates the relationship between leadership styles and sustainable organizational energy. 3. Transformational, transactional, and bureaucratic leadership styles all affect sustainable organizational energy.
P09	(Nwuke & Adeola, 2023)	The research identifies the founder’s continued role as an important finding for creating a constructive ownership and leadership succession. Activities that occupy the founder, such as selecting and developing the successor’s leadership, are important to the continued existence of the business as a family business in the succession phase. Transformational leaders, like the founders in this study, influence and shape the behaviors of their followers (successors) towards achieving the desired business goals. The study also highlights the significance of the incumbent leader’s motivation and the choice of leadership source in determining the outcome of the transitioning process.	1. The continuity and long-term viability of family firms largely hinge on the founder’s willingness to hand over control, the degree of preparation given to the successor, the cultivation of trust and legitimacy in the next leader, and the transmission of a coherent strategic vision for the company’s future. 2. The results of the research offer practical guidance for leaders of family-owned SMEs, particularly in designing and implementing effective plans for managing leadership transitions. 3. The quality of leadership preparedness of successors, which includes coaching, academic education, character-building, and unofficial business administration instructions, enhances their capability to tackle organizational problems.

displays an integrated synthesis of evidence regarding leadership in sustainable family entrepreneurship. It shows multiple leadership styles and how they influence employees’ behaviours, cultures, succession processes, innovations, and sustainability over time.

Data across the codes indicates that leadership is not a unidimensional concept but features multiple perspectives (transformational, authentic, inclusive, servant, differential, and entrepreneurial), which each provide avenues of success to the continuity and sustainability of family firms.

The most dominant theme emerging from the table is about outcomes for employees. A number of the points refer to leadership being about supporting job satisfaction, motivation, engagement and performance. Effective communication, fair pay, the potential support of the work environment, and inclusion into the decision-making process, were identified as the predominant themes of sustainable leadership practice. These forms of leadership and practice demonstrate commitment to the organization and reduce turnover, which is critical to the sustainability of the family firm. In terms of women leadership and cultural values and ethical orientations, we see influence on organisational behaviour. Family support, education, and cultural traditions influence women’s leadership pathways contributing at a higher level to sustainability as an organization. Developing ethical leadership and fostering strong organizational cultures fosters trust, innovation, and social responsibility.

Succession and intergenerational transition are another important area of focus. Several entries spoke about succession and the passing of leadership in the context of enterprises operated by family members. Whether it is taking ownership for the successor development process, being emotionally prepared for transition, and having formal planning and governance processes in place were commonly identified as critical areas for the success of succession or transition of leadership. Additionally, risk mitigation through estate planning and formal processes to develop leadership investment contribute to stability and mitigate risk factors to succession or transition. Innovation and antidote to organizational inertia was also a prominent theme; where inclusive leadership, organizational ambidexterity, entrepreneurial orientation, and investing in people enables family firms to respond and adapt to evolving contexts. Engaging in ongoing learning, being open to new ideas and processes, and creating competitive advantage supports ensuring sustainability and resilience for growth. Across the table of themes, the importance of leadership in sustainable family entrepreneurship is multifaceted and contextual. It is about finding a balance between family and professional management, emotional and family relationship dynamics, sustainable organizational capabilities, and strategic control. Leadership sustainability occurs through strategically aligned, human capacity building, ethical approach, and adaptive practice. Therefore, the table offers different interpretations for how leadership sustains family business across generations and contexts.

Beyond the individual study findings summarized in Table 5, several cross-cutting patterns emerge across the reviewed literature. First, leadership effectiveness in sustainable family entrepreneurship consistently manifests through its influence on employee-related outcomes, including engagement, trust, motivation, and innovative behavior. Second, sustainability is repeatedly linked to leadership practices that balance relational dynamics (family cohesion, ethical values, and trust) with structural mechanisms (governance, succession planning, and performance control). Third, contextual dimensions (particularly gender roles and cultural norms) shape how leadership styles are enacted and perceived, influencing their effectiveness across regions. These recurring patterns indicate that sustainability in family enterprises is not driven by isolated leadership traits, but by the interaction between leadership style, organizational context, and long-term family orientation.

When mapped back to the three focal leadership styles guiding this review, the evidence reveals differentiated but complementary roles. Transformational leadership is predominantly associated with innovation, employee engagement, and adaptability, particularly in contexts involving change, succession, and organizational learning. Transactional leadership emerges as critical for operational stability, governance, and risk management, especially in succession planning and performance control. Ethical leadership underpins trust, legitimacy, and social responsibility, reinforcing long-term commitment among both family and non-family stakeholders. Rather than functioning as mutually exclusive approaches, the findings suggest that sustainable family entrepreneurship is supported by the strategic combination of these leadership styles, contingent upon organizational needs and generational stage.

4. Discussion

This section pulls together the evidence from the table above into three essential elements of leadership: transformational leadership, transactional leadership, and ethical leadership. Each leadership style draws on significant theoretical anchors to systematically interpret leadership in sustainable family entrepreneurship. Each section identifies the way each leadership style is theorized to influence sustainability, continuity, and performance in family business, which set the stage for the thematic development of these leadership styles in greater detail in subsequent chapters.

Although recurring patterns are observed across the reviewed studies, the evidence does not support claims of universal or uniform determinants of leadership effectiveness in sustainable family entrepreneurship. Many findings are derived from context-specific samples, limited geographical settings, or sector-bound cases. Accordingly, the patterns identified in this review should be interpreted as tendencies rather than general laws. A cautious, context-sensitive interpretation is therefore warranted when extrapolating findings beyond the specific institutional, cultural, or organizational settings examined.

4.1. Transformational Leadership

Transformational leadership is consistently recognized as a primary factor in achieving sustainable family entrepreneurship by promoting employee involvement in decision-making, innovativeness, and intergenerational succession success or continuity. In study S01 (Lukito et al., 2025), transformational leadership fosters positive impacts on employees’ performance through purposeful involvement in decision-making, communicating, and promoting ethical behaviors. Employees in transformational-led organizations demonstrate higher levels of loyalty and motivation while also building trust in the organization, all of which contribute to a supportive environment for sustainable growth. Similar findings are evident for S03 (Kaban, 2024) regarding inclusive leadership that, while a separate body of work, has a close association with transformational leadership. These authors similarly examined the implications of inclusive leadership on innovativeness, and a key factor was the promotion of diversity, equal opportunity, and openness to dialog. Affective commitment acts as a mediator to build innovative behaviors in employees, underscoring the importance of relationships and emotional attachments in family enterprises to underpinning sustainability.

Transformational leadership also plays a common function in succession processes. In P09 (Nwuke & Adeola, 2023), founders of family businesses employing a transformational leadership option coach successors, communicate a vision and build trust, and together make the transition smoother. Outcomes rely on succession preparedness in a successor that has been shaped through coaching, education, and character development as well as emphasis on the strategic and ethical focus of the organization. In this regard, P02 (Sunthonpagasit & Hanson, 2019) describes how their sustainable leadership practices are being realized in Thai family manufacturers, and that they reinforce employee engagement through visionary leadership styles that included participatory and accountable decision-making as a hallmark of their leadership practice.

The literature emphasizes that transformational leaders create a culture of empowerment and motivation. S06 (Moravanská et al., 2023) illustrates how young managers in Slovak family firms utilize neuroscience-informed practices to enhance employee development, reflecting transformational components of consideration for the individual and intellectual stimulation. In addition, S04 (Gashi & Smajlaj, 2024), S07 (Domańska et al., 2024), and S08 (Sanagustín-Fons et al., 2020) point out that women leaders often possess transformational qualities through their application and integration of empathy, moral awareness, and moral commitment, noting that female leadership can influence social accountability and ethical decisions while positively influencing innovation.

Beyond internal organization, transformational leadership can impact beneficial outcomes for the long-term, strategic sustainability of family firms. S05 (Al Obaidy et al., 2024) and W01 (Oudah et al., 2018) highlight how firm resilience develops when transformational leaders create conditions for resilience through strategic vision that emphasizes long-term thinking, family and business goals are tacitly aligned, and succession plans are formalized within the organization. Further work by E01 (Daw, 2013) and E03 (Rosen et al., 2019) supported firm resilience through transformational leadership because both studies emphasized the developmental process of identifying entrepreneurial alertness and strategic adaptability concurrently aided organizational longevity.

Transformational leaders also shape the cultures of organizations that enhance outcomes for sustainability. W02 (Jamil et al., 2025), P01 (Zheng & Wong, 2016), and P03 (Ertuna et al., 2019) found that transformational leaders create conditions for organizational practices that bring values, cultural norms, and ethical/employee practices into daily organizational activities that motivate employees, persist employee engagement, and employee engagement across generations. W03 (Dolar et al., 2024) and S06 (Moravanská et al., 2023) suggest that organizational succession is successfully completed across generations with transformational processes fostering affective, normative, and calculative commitment among greater family systems among family members and successors.

In summary, transformational leadership is a complex phenomenon in terms of family business sustainability. It fosters innovation, engagement, ethical behavior, and intergenerational continuity, and helps to create conditions for employee happiness and organizational longevity and resilience. Evidence from different global settings, including Indonesia, Peru, Slovakia, Thailand, Slovenia, Lebanon, and the UAE, suggests that it has a positive influence on family businesses habituated to sustainability and ethical values and practices that can strategically adapt to external circumstances.

4.2. Transactional Leadership

Transactional leadership, specifically around family businesses, is concerned with formalized processes, supervision of performance, and organizing rewards and responsibilities. It is especially helpful for optimizing operational performance, limiting succession risk, and fostering conformity to organizational norms. Study S02 (Ramirez-Lozano et al., 2023) exemplifies this point when it states that transactional practices like formal communication and performance feedback are helpful for engagement and job satisfaction for employees working in Peruvian family businesses. When employees know and understand expectations, they appreciate that structured supervision of that performance is in place, along with fair compensation. This, as a result, enhances stability for the organization and limits turnover. Further S09 (Ma et al., 2022) provides an example of differential leadership, or a form of transactional behavior, that is used to promote employee performance through moderated partiality and preferential treatment, even developing organizational citizenship behavior and encouraging innovative behavior in Chinese family firms.

Transactional leadership is significantly important for assistance in transition management and risk-management initiatives. Research in S05 (Al Obaidy et al., 2024) suggests that risk-management of inheritance relies on formality in planning, defined governance mechanisms, and process safeguards that ensure family businesses are sustained in the long run. In W01 (Oudah et al., 2018) authors study leaders of medium and large family firms in the UAE, noting that they use transactional methods, including formal succession planning, strategic planning, and corporate governance systems. Through these practices, organizations enabled a seamless transition of leadership that created funding conflict and lead to accountability, accountability can also take place in this type of leadership. Likewise, E01 (Daw, 2013), indicate that Lebanese family owned businesses have engaged transactional mechanisms in order to organize ownership transitions, formalize decision making behaviors, and create accounting frameworks that intentionally sustained sustainability and profitability of these family owned enterprises.

Transactional leadership was also evident in performance metrics and degree of operational control. S10 (Adams et al., 2019) describes how leaders of private healthcare facilities in Bangladesh were intentionally using structured approaches to resource constrains in order to control service delivery and monitor staff performance. The use of formalized procedures and clearly defined organizational roles exhibited some measure of efficiency and acknowledgement of the complex nature of the healthcare environment. From S08 (Sanagustín-Fons et al., 2020) we learn about Peruvian family firms and their use of structured ethical frameworks to help inform and promote quality decision making around moral behavior. The research indicates that even transactional structures can be agentic when an ethical act includes a structured set of defined responsibilities in best practice or operational agreement: using articulated practices, can help with sustaining agentic behavior through backup expectations between members of an organization while establishing a sense of specified behavior that may regulate organizational value.

In addition, transactional leadership supports the professional development of successors and employees. Research in Slovenia and Slovakia W04 (Rumanko et al., 2021) and S06 (Moravanská et al., 2023)shows that organized succession processes, pre-arranged training, assessments of performance, and a gradual distribution of authority can help prepare successors for leadership while providing continuity. Furthermore, P03 (Ertuna et al., 2019) and P04 (Cater & Beal, 2015) demonstrate that transactional practices, like standard operating procedures, performing organizational assessments, and performance monitoring, can improve employee accountability and help ensure that organizational goals are consistently achieved. An organized orientation reinforces operational and strategic sustainability in family firms.

Transactional leadership supports other leadership approaches by building a discipline routine and accountability. For example, S03 (Kaban, 2024) serves as an illustration of this—the formalized assessment of innovation efforts in family firms serving consumers provided a framework to facilitate innovation whilst maintaining organizational accountability towards goals. Likewise, in E02 (Sunthonpagasit & Hanson, 2019), the transactional framework of active participation shows how a participatory engagement-style can significantly contribute to resolving conflict, improve performance, and enable alignment between people with different levels of strategic thinking. This illustrates common principles across different contexts, including Indonesia, Peru, Malaysia, Lebanon and Slovenia when transactional leadership can provide order and clarity, along with observable and measurable responses—things which are often of particularly high value when it comes to family firms managing succession planning, limited resources, and/or dealing with internal complexity.

In summary, transactional leadership is a key mechanism when it comes to family business sustainability. By being so structural, transactional leadership enables performance management and accountability as a context for operational efficiency, which is an important outcome for mitigating succession and inheritance risks, as well as sustaining a foundation for organization or employee development over time.

4.3. Ethical Leadership

The role of ethical leadership appears to be a significant aspect in sustaining family businesses. Ethical leadership guides organizational actions while facilitating transition into the next generation. Ethical leaders show honesty, fairness and social responsibility, while creating a safe and trusting environment for employees to engage and commit to the organization. S01 (Lukito et al., 2025) highlights how transformational leaders who act ethically, increase employee loyalty and performance. Ethical leadership facilitates organizational culture by creating open lines of communication, engaging employees, and understanding and acknowledging cultural norms of ethics which promote ethical decision-making. Similarly, S02 (Ramirez-Lozano et al., 2023) outlines examples of authentic and ethical leadership in Peru-based family firm, as employee engagement is promoted and job satisfaction increases, even when an employee is navigating family entanglements which lead to workplace conflict and stress. This enhances organizational stability.

Furthermore, ethical leadership builds supportive environments, including support for women in leadership roles and bolstering inclusive leadership behaviors. S04 (Gashi & Smajlaj, 2024) depicts how cultural awareness, family support and training, allow women in family firms to take on leadership roles, while making ethical and socially acceptable decisions. S07 (Domańska et al., 2024) and S08 (Sanagustín-Fons et al., 2020) note that female leaders often incorporate ethical values, religious standards, and social responsibility into their strategic decisions to motivate employees and promote sustainable family firms. The studies explore that ethical leadership comprises a compliance aspect, however, creates a morally conscious organizational culture, which promotes social and economic benefits.

Succession and governance processes are especially conditioned by ethical leadership. For example, in S05 (Al Obaidy et al., 2024), ethical concerns inform management of inheritance risks and succession planning that are consistent with the family’s values and long-term goals, wealth, leadership, and decision-making transitions. W01 (Oudah et al., 2018) and W02 (Jamil et al., 2025) provide evidence that family business sustainability is on the rise when leaders emphasize fairness, transparent and ethical decision-making, and ethical consistency. These mechanisms decrease conflict and help build trust between family members and employees to sustain the organizational values across generations.

Ethical leadership also has an interplay with both strategic initiatives and the ethical foundations of social responsibilities. S08 (Sanagustín-Fons et al., 2020) illustrates how Peruvian family firms combine ethical and religious values with an innovative strategy toward sustainable growth. P04 (Cater & Beal, 2015) illustrates how servant leadership (because it is a form of ethical leadership), leads to collaboration, trust-building, and conflict resolution, due to employee satisfaction and sustainability in the long-term. Studies P01 (Zheng & Wong, 2016), P03 (Ertuna et al., 2019), and E02 (Siakas et al., 2014), show that moral leadership impacts corporate social responsibility initiatives, such that work with the vagaries of local practice, but are aligned with family values, and sustainability initiatives wrestle with social commitments, values, and ecological repercussions. By navigating tensions, ethical leaders’ work on behalf of family priorities, and the family business, navigating between profit motives and social obligation.

Ethical leadership also helps create, promote, or establish organizational culture and employee engagement. W03 (Dolar et al., 2024), W04 (Rumanko et al., 2021) and P02 (Sunthonpagasit & Hanson, 2019) show that transparency and guiding employees who are aware of the established ethical codes enhances affective commitment, trust, and collaboration with employees. Leaders who model ethical conduct influence both their successors as well as non-family employees to reinforce a culture of integrity that deepens even when the employing leader’s tenure concludes. S09 (Nwuke & Adeola, 2023) also observes that moderated differentiated treatment in leadership, when ethically guided by fairness, can motivate employees to achieve while not violating effectiveness and fairness in the organization as a whole.

Overall, ethical leadership is also critical for family business sustainability. Ethical leaders build trust, cohesion, and resilience over time by embedding integrity and fairness and a sense of social responsibility in governance, succession, and everyday practice. Ethical leadership has been shown, in a range of contexts (such as Indonesia, Peru, Slovakia, Lebanon, Thailand, Malaysia, Slovenia, and Bangladesh), to enhance an ethical organizational culture that is sustainable, thereby enabling generational family business integration and harmony.

4.4. Gender, Leadership, and Sustainability in Family Enterprises

The gender-related findings identified in this review align with established theoretical perspectives on gender and leadership. Drawing on social role theory, women’s leadership in family enterprises reflects relational, ethical, and community-oriented behaviors that reinforce trust and long-term sustainability. Female leaders are frequently positioned as stewards of family values, ethical continuity, and social responsibility, which corresponds with feminist ethics emphasizing care, responsibility, and relational accountability.

In family business contexts, these gendered leadership behaviors are further reinforced by familial legitimacy and intergenerational expectations, allowing women leaders to influence sustainability outcomes through both formal authority and informal relational capital. The reviewed studies suggest that women’s leadership does not merely replicate dominant leadership models but introduces alternative logics that strengthen ethical governance, employee commitment, and social legitimacy. These findings highlight gender as a substantive analytical dimension rather than a descriptive variable within sustainable family entrepreneurship.

4.5. Cultural Context as a Moderator of Leadership Effectiveness

Cultural context emerges as a critical moderator shaping how leadership styles influence sustainability in family enterprises. The reviewed studies demonstrate that leadership effectiveness is embedded within culturally specific norms governing authority, hierarchy, and relational obligations. For example, differential leadership practices observed in Chinese family firms reflect collectivist and hierarchical cultural logics, where selective favoritism can motivate performance without undermining legitimacy. In contrast, servant leadership in U.S. contexts aligns with individualistic values emphasizing empowerment, participation, and moral authority.

These contrasts suggest that leadership styles cannot be universally evaluated without accounting for cultural frameworks. Sustainable leadership in family enterprises therefore depends not only on the adoption of leadership behaviors, but on their cultural congruence. Culture shapes how leadership is interpreted, accepted, and enacted, thereby influencing sustainability outcomes across national and institutional contexts.

4.6. Leadership, Succession, and Intergenerational Sustainability

The succession-related findings converge around a unified conceptual logic linking leadership style, intergenerational communication, risk management, and governance structures. Transformational leadership facilitates succession by fostering trust, mentoring successors, and transmitting strategic vision. Transactional leadership supports succession through formal planning, role clarification, and governance mechanisms that reduce uncertainty and conflict. Ethical leadership ensures fairness, transparency, and legitimacy throughout the transition process, reinforcing family cohesion and stakeholder confidence.

Together, these dimensions suggest that successful succession is not a discrete event, but a leadership-mediated process embedded within family governance systems. Sustainability is strengthened when leadership styles are strategically aligned with communication practices and risk management mechanisms, enabling continuity across generations.

4.7. Methodological Reflections on the Evidence Base

The methodological diversity observed across the reviewed studies reflects both strengths and limitations in the current evidence base. Quantitative approaches, including PLS-SEM and ANN modeling, offer statistical rigor and generalizability but may oversimplify complex family dynamics and cultural nuances. Qualitative case studies provide rich contextual insights into leadership, succession, and values transmission, yet their findings are often context-specific and less generalizable. Simulation and modeling approaches contribute theoretical innovation but rely on assumptions that may not fully capture lived organizational realities.

These methodological choices influence how leadership and sustainability are conceptualized and measured. As such, conclusions drawn from literature should be interpreted considering methodological constraints. Future research would benefit from integrative designs that combine analytical rigor with contextual depth to strengthen theoretical development in sustainable family entrepreneurship.

4.8. Emerging and Exploratory Research Directions

Several studies identified in this review as a point toward emerging research directions, including neuroscience-informed leadership, ambidextrous leadership, and AI-assisted decision-making in family enterprises. While these approaches offer promising insights, the current evidence remains largely exploratory. Most of these studies are conceptual, small-scale, or context-specific, limiting their immediate generalizability.

Consequently, these emerging streams should be interpreted as indicative rather than conclusive. Their inclusion in this review serves to highlight future research potential rather than established leadership mechanisms. Distinguishing between mature evidence and exploratory contributions is essential to avoid overstating the robustness of findings and to guide scholars toward areas where theoretical development and empirical validation are still needed.

4.9. Conceptual Framework for Leadership and Sustainability in Family Enterprises

Based on the synthesized findings of this systematic review, a conceptual framework is proposed to integrate the relationships between leadership styles and sustainability outcomes in family enterprises (Figure 2). The framework consolidates evidence across the reviewed studies by illustrating how transformational, transactional, and ethical leadership styles jointly contribute to sustainable performance through key mediating mechanisms, including employee engagement, trust, and succession readiness.

In addition, the framework incorporates contextual moderators identified in the literature, particularly cultural context and gender dynamics, which shape how leadership behaviors are enacted and perceived across different institutional settings. Rather than depicting leadership styles as isolated drivers, the model emphasizes their complementary and contingent interaction within family governance systems. This integrative framework provides a theoretically grounded synthesis of the review findings and offers a foundation for future empirical testing in sustainable family entrepreneurship research.

5. Conclusions

This systematic literature review analyzed twenty-six studies from general databases SCOPUS WoS EBSCOHost, and Proquest that focused on leadership approaches in sustainable family entrepreneurship. The studies represent a vast geographic reach, with family businesses being studied in Indonesia, Peru, Malaysia, Lebanon, Slovenia, Slovakia, Thailand, Bangladesh, Finland, Greece, Japan, and the USA. This variety exemplifies the growing interest in leadership styles, succession planning, and approaches to sustainability across different contexts (culturally & organizationally).

The literature reviewed in this analysis indicates a growing focus on transformational, transactional, and ethical leadership as salient mechanisms for enhancing employee engagement, organizational outcomes and long-term continuity of the business. Transformational leadership has been identified consistently as enhancing a family’s ability to innovate and employee engagement through motivating employees and producing affective commitment. Transactional leadership demonstrated its effectiveness through the utilization of operational efficiencies, succession planning, or some form of structured governance or decision-making process. Ethical leadership promoted trust, integrity and socially just behavior through corporate social responsibility to support organizational culture and sustainability that crosses generations. Moreover, mixed methods, surveys (quantitative), interviews (qualitative), case studies and advanced modeling used in the literature reviewed show the depth of rigor and sophistication being utilized in research for family business.

A further trend we have seen from this review is attention to contextual factors such as cultural norms, family obligations, gender roles, and contexts that exist within and beyond core family members willing to engage in the study of these family businesses in leadership succession; many studies recognized the significance of effectively managing succession planning, assessing inheritance risks, and developing human capital as a pathway to successfully navigate succession across generations, as well as addressing the research agenda around integrating ethical leadership and inclusion into the practice of leadership particularly for women’s pathway to leadership as a key contributor to positive organizational outcomes.

In conclusion, the systematic review supports the importance of multi-dimensional leadership styles in the pursuit of sustainable objectives for family businesses, by integrating the three components of transformational leadership, transactional leadership, and ethical leadership, and enables family business leaders to foster organizational employee performance and create reputable family businesses that will be a credible legacy for future generations, and nurture sustainability over time. The contributions expand the theoretical and practical knowledge for family business leaders, policy makers, and fellow scholars who are interested in promoting sustainability and effective leadership practices in a number of contexts across the globe.

5.1. General Findings and Observed Trends

A systematic review of all 26 empirical studies shows several key trends with regard to leadership and sustainability within family entrepreneurs. First, there is clear emphasis on leadership with multidimensional approaches. Many studies emphasized leadership styles of transformational, transactional, and ethical leading to the realization that sustainable family businesses need multidimensional leaders to encourage innovation, work as operationally efficient, and socially responsible to uphold ethical beliefs and values. Transformational leading is becoming associated with improving employee engagement and motivation towards innovative types of work occurring especially for future succession planning or generational transfer. Transactional type leadership is viewed as helpful for organizing governance and documentation of employee performance as well as dealing with succession or continuity risks following some governance structure, as applicable to family enterprises. Ethical leadership is becoming an emerging trend for cultivating trust, justice, and social responsibility in how the leader acts in relation to morality and values in the sustainability of family firms.

The second trend of note is the globalization of research. For example, research examining family-owned firms in Asia, Europe, Latin America, and the Middle East represents a general interest in studying leadership practices in different cultural, economic, and regulatory environments. Across disciplines, comparison studies have shown that important contextual factors, such as cultural norms, gender roles, expectations about family, and industry contexts, shape effective leadership practices in facilitating sustainability in family firms.

From a methodological perspective, the literature indicates increasing methodological precision. Survey studies continue to investigate leadership practice outcomes using best practices, structural equation modeling, and advanced techniques such as neural networks, while qualitative studies, through interviews, case studies, and archival studies, furnish rich, in-depth portraitures of the succession process, decision making, and organizational culture. There has also been the re-emergence of mixed-method studies, for example, studies measuring outcomes of leadership while approximating lived experience.

5.2. Identified Limitations

While this systematic review provides important information, it is also necessary to note some limitations. First, the inclusion criteria were limited to studies that were published in English and available within Universidad César Vallejo databases. Consequently, this bias may hinder some of the generalizability of the review since information regarding family business-related leadership and sustainability in other languages or non-indexed research might be omitted.

Second, the review made an explicit distinction between empirical research articles only, leaving out literature reviews, theses, or other types of documents that might be helpful in providing alternative viewpoints towards leadership and sustainability in family enterprises.

Third, taking into consideration that the systematic review incorporated a methodological variety of the reviewed studies, such as those utilizing quantitative, qualitative, or mixed-method designs. This variety suggests discrepancies in the data collection and analysis options utilized across studies, thus potentially affecting compatibility across studies or overall comparability of results.

Finally, channels of publication favoring published studies and published research are also concerning, for instance published studies often have publication bias for reporting significant or positive findings. It is important to think about the limitations noted in the systematic review in working to provide results or infer implications for practice related to family business leaders and sustainability.

5.3. Academic and Practical Implications

The findings presented from this systematic review have significant implications for both scholarship and practice in the domain of family entrepreneurship. From the scholarship perspective, the findings generate further opportunities for future research to investigate how transformational, transactional, and ethical leadership works together in different cultural and organizational contexts. There are multiple methodological approaches from contributing authors which include quantitative, qualitative, and mixed-methods study designs. This also reflects the opportunity to expand more comparative studies and longitudinal research aimed at studying the role of leadership for sustainability and generational transitions from the micro (family) level to the macro (community) level.

From the practice perspective, the findings demonstrate how effective leadership plays a role in employee engagement and motivation, innovation, and corporate resiliency in family business contexts. Leaders may want to focus on multi-dimensional approaches to governance that are not only cooperative and inclusive but that also align more strategically to governance models, ethical processes, and motivational practices in order to benefit from better performance and successful transition periods for the family. Lastly, there is a real need for better understanding of the unique family business context, particularly with respect to family dynamics, expectations of culture and industry, to shape leadership approaches that enhance intergenerational continuity and support social and economic well-being over long-term sustainability goals.

5.4. Recommendations for Future Research

The review shows that, through leadership, family entrepreneurship can help improve business performance and foster sustainability, inter-generational continuity, and employee engagement. These findings may inform family business owners, practitioners, and policymakers in developing leadership practices and resilience in organizations.

The effective leadership styles identified in this study and across reviewed articles, including transformational, transactional, and ethical leadership, can guide other family businesses that wish to improve succession planning, governance, and employee motivation. Future directions for research may also include broadening the search to other international databases, specifically Web of Science and ScienceDirect, as well as looking at family business from countries and regions yet to be represented, expanding the comparative study of the role of leadership in sustainability of family enterprises across cultural, economic, and industry contexts.

Future research would also benefit from methodological designs that address the limitations identified in the current evidence base. Longitudinal studies are needed to capture leadership dynamics and sustainability outcomes across generational transitions. Multilevel modeling could help disentangle individual, organizational, and family-level effects of leadership. Cross-cultural experimental and comparative studies would further clarify how cultural context moderates leadership effectiveness. Additionally, mixed-methods approaches combining quantitative rigor with qualitative depth may offer a more holistic understanding of sustainable leadership in family enterprises.