AI & Business Environment

Family businesses represent a significant part of the worldwide economy that contribute to the employment, financial and economic development, and also, the community advancement. Since sustainability or sustainable development is trying to get attention, it is important to analyze the family values that drive sustainable practices in family businesses. This article investigates the relationship between sustainability goals and business model innovation, aiming to explain how these variables associated to drive long-term success in family-owned enterprises. Over the last few years, the importance of sustainability in business processes has been growing recognition, driven by economic, social and environmental practices. Nevertheless, the degree to which the family businesses impact the adjustment of sustainable practices in family firms still remains under-investigated. Using a quantitative research design, data were collected from family-owned enterprises operating in Kosovo, North Macedonia, and Albania. A purposive sampling method was employed to select firms that were locally owned, involved at least one family member in managerial roles, and demonstrated an expressed commitment to sustainability. The sample of this study consisted of 92 family firms, across three countries. The findings of the study contrary to previous studies did not reveal a positive relationship between business model innovation and sustainability practices within family businesses in Kosovo, North Macedonia, and Albania. This means that family businesses in these countries need to try new ideas and ways of running their businesses to include eco-friendly practices in how they operate. This relationship demonstrates how approaching new business ideas can help push forward sustainability efforts in family-owned businesses.