SUSTAINABLE SUCCESSION IN FAMILY ENTERPRISES: A THEORETICAL INTEGRATION OF STAKEHOLDER CAPITALISM, ESG GOVERNANCE AND SUSTAINABLE FINANCE

Abstract

The article examines the theoretical foundations and interactions between

stakeholder capitalism and sustainable finance in the context of family enterprises, regional

development and sustainable business transfer. The study aims to conceptualise how these two

paradigms jointly shape a model of corporate sustainability that supports intergenerational

continuity in family firms.

The research employs a qualitative, conceptual-analytical approach. It integrates a

systematic review of international academic literature, a comparative analysis of theoretical models,

synthesis of empirical findings from prior studies, and an interpretative examination of the

European regulatory framework, including the EU Taxonomy, SFDR and CSRD. The methodology

focuses on identifying conceptual linkages, complementarities and theoretical mechanisms relevant

to family business succession and sustainable corporate governance.

The analysis demonstrates that stakeholder capitalism expands the corporate focus beyond

shareholders to all stakeholder groups, reinforcing long-term value creation, trust and social

responsibility. Sustainable finance complements this paradigm by providing financial instruments,

regulatory standards and market mechanisms that channel capital towards sustainable activities,

reduce risk and enhance transparency. Family enterprises exhibit distinctive characteristics—

longterm orientation, strong identity, embeddedness in local communities and socio-emotional

wealth (SEW)—which make them natural carriers of stakeholder logic. ESG integration emerges as

a strategic tool that strengthens competitiveness, facilitates access to capital and supports succession

readiness. At the regional level, stakeholder capitalism enhances social capital and cooperation,

while sustainable finance drives green transformation and innovation. In the context of business

transfer, stakeholder relationships reduce organisational risk, and sustainable finance improves

financial resilience and firm value.

The study offers an integrated theoretical framework combining stakeholder capitalism and

sustainable finance, specifically tailored to the dynamics of family business succession. It

contributes to the literature by linking corporate sustainability, intergenerational continuity and

regional development. The findings provide conceptual foundations for future empirical research

and inform policy design aimed at strengthening sustainable governance and succession processes

in family enterprises.