The relationship of firm ownership structure and sustainability performance in agri-food chains: A systematic literature review

Abstract

Sustainability challenges have led to a growing interest in agri-food sustainability performance and the role of ownership structures in it. Ownership has significant implications by defining how owners reflect their goals and ownership costs into firm objectives, decision time horizons, risk preferences, and interactions with supply chain partners. Current literature shows conflicting results on the relationship and a lack of consistent definitions and measurements. Previous reviews have focused on one ownership structure, one sustainability pillar, have not addressed theory application or the context of the agri-food sector. This paper addresses this fragmented literature by providing a systematic assessment of conceptualisations and measures, theories used, linking empirical evidence and theoretical arguments to understand how ownership explains differences in sustainability performance. A systematically rigorous PRISMA methodology utilising thematic and narrative synthesis is applied. The synthesis reveals that ownership can positively affect one area of sustainability but negatively affect another. Theories explain how ownership shapes unique firm characteristics that, in turn influence sustainability performance. Firm goals, capital structure, governance system, and business strategy are significant explanatory factors for sustainability performance. The paper concludes with suggestions for future research to aid comparison between studies and generalisation of conclusions.