Post-disaster recovery for family firms: The role of owner motivations, firm resources, and dynamic capabilities

Natural disasters (e.g., earthquakes and pandemics) negatively affect firms and their stakeholders. These disasters disrupt the operations of firms and lives of people by generating a shock in the system. Small firms are especially vulnerable to the shocks and disturbances resulting from these disasters. Since small firms, especially family firms, are key economic contributors and agents of recovery in any community, understanding their post-disaster recovery processes is critical. Therefore, this study examines the post-disaster recovery processes of small family firms. We utilize a grounded theory approach to analyze and propose that resources and socioemotional wealth priorities influence the post-disaster recovery of small family firms. Utilizing the 8.8 Richter scale earthquake in Chile in 2010 as a natural disaster, we examine the eight-year lagged data of 20 small family firms with disrupted operations. Our findings have important implications for small firms experiencing the negative consequences of disruptions, including those experiencing the COVID-19 pandemic-induced disruption.

Temporary business model innovation – SMEs’ innovation response to the Covid-19 crisis

The Covid-19 crisis has hit SMEs particularly hard. Numerous business models (BM) have been limited or rendered downright impossible due to decreased social contact. SMEs can respond to this exogenous crisis via temporary business model innovation (BMI). This empirical study investigates these temporary BMs using a multiple case study approach based on five SMEs in Austria, Germany, and Liechtenstein who within a short period of time applied their core competencies and networks to integrate new BMs, which were in some cases very different from existing ones. These had a positive effect on strategic flexibility, and if desired can also be incorporated into the firm long-term. The paper contributes to SME crisis management during the Covid-19 pandemic by pointing out and developing a successful management mechanism that allows to survive a crisis or even improve during this time. Moreover, we contribute to BMI literature by explaining temporary BMI as a new form of BMI. It also makes clear to managers that temporary BMs add value to firms and create new revenue streams.