Family businesses under COVID-19: Inspiring models – Sometimes

Navigating job satisfaction in family firms during crisis

Occupational health is one of the aspects significantly affected during crisis periods. It is essential to learn about the factors that improve organizational capacity in coping with such shocks. This study investigates how the working environment of a family business influences job satisfaction during crises. Conducting a survey with 516 employees at the peak of the pandemic, the research utilizes structural equation analysis, revealing that family business environments can mitigate burnout, enhance affective commitment, and consequently, boost job satisfaction. The study highlights the need to manage burnout and utilize resources, such as employee commitment, for family firms to sustain job satisfaction amidst disruptions. It deepens the comprehension of family businesses' crisis response, emphasizing the significance of human resource commitment and management. The investigation illuminates the dynamic interplay between the work environment, employee well-being, and organizational resilience, providing valuable insights for both theoretical understanding and practical application.

Corporate Social Responsibility in Family Firms: Status and Future Directions of a Research Field

This systematic literature review contributes to the increasing interest regarding corporate social responsibility (CSR) in family firms-a research field that has developed considerably in the last few years. It now provides the opportunity to take a holistic view on the relationship dynamics-i.e., drivers, activities, outcomes, and contextual influences-of family firms with CSR, thus enabling a more coherent organization of current research and a sounder understanding of the phenomenon. To conceptualize the research field, we analyzed 122 peer-reviewed articles published in highly ranked journals identifying the main issues examined. The results clearly show a lack of research regarding CSR outcomes in family firms. Although considered increasingly crucial in family firm research, a study investigating family outcomes (e.g., family community status, family emotional well-being), as opposed to firm outcomes, is missing. This literature review outlines the current state of research and contributes to the actual debate on CSR in family firms by discussing how family firms can use CSR activities as strategic management tools. Moreover, our analysis shows a black box indicating how CSR links different antecedents and outcomes. The black box is significant since firms generally need to know where to allocate their scarce resources to generate the best outcomes. We identify nine research questions based on these findings, which we hope will inspire future research.

Digitalization and entrepreneurial firms' resilience to pandemic crises: Evidence from COVID-19 and the German Mittelstand

While stressing the relevance of context, the organizational resilience literature has so far not extensively examined resilience in times of healthcare crises such as the ongoing COVID-19 pandemic. The Parasite Stress Theory of Values suggests that such pandemic crises have detrimental impacts on entrepreneurial activity due to social distancing and its effects on interaction, collaboration, and innovation. However, alternatives to personal contact now available thanks to digitalization, have not yet been examined. We expect entrepreneurial firms with more digitalized business models to show higher resilience to pandemic crises, especially those highly affected by globalization and more for non-family businesses than for family businesses. Based on a survey of German Mittelstand firms in the midst of the crisis induced by COVID-19, our findings broadly support our expectations and thus help qualify the Parasite Stress Theory of Values and contribute to a better understanding of organizational resilience in times of pandemic crises.

Business process innovations in family firms: evidence from Serbia

Purpose

This paper aims to explore the innovation performance of Serbian family firms, the differences in the innovation performance between family and non-family firms as well as different family firms, and the relationship between business process innovation and customer satisfaction among family firms.

Design/methodology/approach

The sample consists of 207 valid responses from young Serbian companies from various industries founded in 2015 that published their financial statements in 2017. The statistical analysis involved descriptive statistics, reliability analysis, independent samples t-test, one-way ANOVA, and correlation analysis.

Findings

The study results indicate that family businesses in Serbia are innovation-oriented and that they introduced a number of innovations in business processes related to the production and distribution of goods or services and the development of products and business processes. The results also suggest that family and non-family firms are equally committed to introducing innovations in business processes. In addition, the study did not confirm significant differences in the performance of business process innovations among family firms in the manufacturing, trade, and service sectors. Finally, the results demonstrate that introducing business process innovations is positively associated with customer satisfaction and customer retention rate in Serbian family firms.

Originality/value

This paper presents the first comprehensive analysis of the innovation performance of Serbian family firms and can help policymakers assess the contribution of innovation to economic goals.

Family businesses in tourism – the use of digital technologies in times of uncertainty and crisis

Purpose

The main purpose of this paper is to explore the impact of digital technologies on the promotion of tourist offer from the perspective of family businesses. The paper tries to provide a better understanding of the factors that determine the use of digital technologies in the family tourism business, both in the modern digital world and in times of uncertainty and crisis caused by the COVID-19 pandemic.

Design/methodology/approach

The survey method was used in the realization of the research. Data were collected using a stratified random sample of 86 tourism providers in Montenegro and analyzed by using SEM models, logistic regression and descriptive statistics.

Findings

The results showed that the demographic characteristics of the respondents were the least important factors in the analysis; while factors that significantly affected the use of digital technologies in Montenegrin tourism included the nature of future tourism trends perceived by respondents, crisis and uncertainty caused by the COVID-19 pandemic, participants’ perceptions, attitudes and understanding of the specificities of digital technologies and benefits they offer to tourists, perceived from the perspective of the family business representative. Furthermore, the results of logistic regression revealed that pandemic had stronger consequences on micro and small enterprises, compared to those imposed on medium-sized firms. These impacts relate to changes in organization and redesign of workflows, altered communication from traditional to digital and increased importance of business innovations. On the other hand, the increased significance of integration of marketing channels for multiple target segments, as a consequence of the COVID-19 pandemic, was stronger pronounced in medium-sized businesses compared to micro and small ones.

Originality/value

The results obtained may serve the holders of the tourist offer, managers and decision-makers when making decisions on the imposition of digital technologies in tourism, in order to secure global reach business, multi-channel tourist interaction, cost-saving and being ahead of competitors. This enables an integrated analysis that forms the basis for further creation of tourism and marketing policies at the individual and collective level to attract tourists and strengthen Montenegro’s competitiveness as a destination.

A safe haven in times of crisis: The appeal of family companies as employers amid the COVID-19 pandemic

Family firms often struggle to recruit skilled non-family employees. Applying a mixed-method strategy, this article investigates the changing perception of family firms as attractive employers in the context of the COVID-19 pandemic. Experimental results indicate that family firms benefit from a greater popularity amid crises owing to perceptions that they offer greater job security and compensation. Qualitative findings expand on these results by identifying new attractiveness-relevant factors that only come into play amid crises—specifically, multifaceted conceptions of family firms’ crisis responses and their importance for local communities and economies contribute to their situational appeal.

Internationalization Strategies at a Crossroads: Family Business Market Diffusion in the Post-COVID Era

COVID-19 is the last nail in the coffin of globalization as we know it. This research aims to explore the influence of capital ownership in the (re)design of internationalization strategies among firms, considering the new macroeconomic challenges. It is commonly accepted that the extent to which family businesses approach internationalization differs from their counterparts; as such, the identification of leverages or hinderers in this process and the potential singularities of these firms is urgent. Intermittences in global operation and discontinuous internationalization paths remain overlooked in the theory. Continuity or intermittence across the internationalization strategies, as well as their determinants, were tested using data from the triennia of 2018, 2019, and 2020; the data were gathered from the Iberian Balance Sheet Analysis System Database (SABI), through a balanced panel of 26,154 firms belonging to all sectors of the manufacturing industry. Empirical evidence supports the heterogeneity of strategies among family businesses, as well as dissimilarities from their non-family counterparts. The firm dimension, experience in global operation, and the regional ecosystem in which the firm is embedded are identified as being central in internationalization endeavors. Urgency and assertiveness of policy action addressing the new macroeconomic challenges are required to foster economic recovery, and exploring extant entrepreneurial fabric potential and the already-established networks will determine the pace and success of the measures. Moreover, empirical evidence reinforces region-specific actions to be implemented, proposing the re-location of economic activities while promoting the intensification of spatial clustering and international networking. Designing an accurate policy package places demands upon heterogeneous players and layers of action, overlapping clusters and networks, and the creation of a multilevel ecosystem in which the flow of economic, human, and knowledge aspects circulate, reinforcing community resilience.

Effective business model adaptations in family SMEs in response to the COVID-19 crisis

Purpose

The present paper aims at exploring effective business model adaptations in response to unexpected events such as the COVID-19 pandemic.

Design/methodology/approach

The authors test the effect of two major business model adaptations, namely changes in the value proposition and changes in the target market, on a sample of 96 family SMEs.

Findings

Results show that only changes in the value proposition had a positive and significant impact on performance, helping family SMEs to better confront COVID-19. However, this effect is reduced in the case of target market change.

Originality/value

To the best of the authors’ knowledge, this is the first study to investigate how business model adaptations in family SMEs affect performance in crisis situations.

Coping mechanisms of Philippine tourism and hospitality family businesses during the COVID-19 pandemic: a non-parametric approach

Purpose

Family businesses (FB), mostly small-sized, dominate the tourism and hospitality industry (THI), especially in the rural areas. While many would have been used to the impact of demand seasonality, it is unknown how these businesses would have survived through the restrictions imposed to contain the coronavirus disease 2019 (COVID-19) pandemic as compared to non-family business (NFB) counterparts. This study aims to determine if there were differences on how family and non-family enterprises in the THI coped with government restrictions.

Design/methodology/approach

By subjecting the survey data from tourism enterprises to non-parametric techniques, the authors establish empirical evidence on similarities and differences of coping strategies adopted by FBs and NFBs; their required support from government and their perceptions of a post-pandemic THI.

Findings

The analysis revealed that family-owned tourism and hospitality businesses in the Philippines tended to collaborate with other businesses to manage the impact of the pandemic restrictions. Since they hired more seasonal workers prior to the restrictions, they tended to avoid hiring workers during the restricted period. NFBs, on the other hand, that were generally larger in size and more professionally managed with more regular employees, tended to streamline operations for greater efficiency.

Research limitations/implications

The study relied on survey results distributed and collected online. There is an innate bias against those firms that did not have access to the survey links.

Practical implications

The comparative study suggests that interventions to assist firms in the THI should consider the differences in firm ownership as “one size does not fit all.”

Social implications

The study provides evidence about how environmental factors impact the operations of family firms. Thus, it provides valuable insights for both the academic community and industry practitioners.

Originality/value

This is the first study in the Philippines that was able to capture response of family and non-family firms in the THI during the COVID-19 lockdown.