Understanding the Relationship Between Managers’ Belief in Big Gods and Firm Reputation

Family business researchers have long known that prosocial decisions by managers can improve firm reputation. However, the reasons why managers vary in their willingness to make short-term costly prosocial decisions are currently under-theorized. To help remedy this gap in the literature, we draw on recent research in the discipline of psychology that shows how a particular set of religious beliefs-belief in a Big Gods-can promote prosocial behavior. We build on this research by introducing a conceptual model that links a set of religious beliefs to firm reputation. While we certainly do not deny that other beliefs, religious, secular or otherwise, can induce owner-managers to make short-term costly prosocial decisions, our key argument is that when owner-managers believe in one or more Big Gods, they are, ceteris paribus, more likely to behave in a prosocial fashion. This paper presents a model that provides a micro-foundational explanation for why certain religious minorities are over-represented in many industries.