The organization as an intelligent entity: Using artificial intelligence to explore the sustainability of family and non-family firms

Abstract

This article puts forward a concept of the organization as a mind-like, intelligent entity capable of efficiently responding to environmental stimuli. Such an entity-centric view offers a more coherent theoretical basis for predicting the ways in which different organizational factors may shape organizational behavior. We apply this logic to the context of sustainability in family firms, where previous research shows mixed results, possibly due to the omission of confounding factors such as organizational age. Using large-scale data and spaceborne-validated AI metrics on sustainability, we find that both organizational age and family influence independently exhibit negative relationships with sustainability outcomes. We discuss the implications for future theorizing and suggest avenues for further research in management, family business, and the broader exploration of human and artificial agency in organizations.