The Case of the Case: The Writing and Application of the Method

Este caso objetiva promover uma reflexao sobre o processo de escrita de casos para ensino e direcionamentos para aplicação do método. Em 2020, João Luiz Marinho, doutorando em Administração na Universidade do Aprendizado (UNIAPRE), foi desafiado pelo professor Fernando a escrever o seu primeiro caso para ensino para aplicação na disciplina de Estratégias Organizacionais, da qual era estagiário em docencia. Porém, muitos questionamentos sobre a construção e aplicação de casos para ensino sondavam os pensamentos de João, uma vez que este nao tinha experiencias anteriores com o método, possuía pouca prática na docencia e a migração das aulas para a modalidade on-line era novidade. Assim, a proposta foi fazer com que os alunos se colocassem no lugar de João, a fim de propiciar um debate sobre a escrita e aplicação de um caso para ensino na modalidade on-line. Sugere-se sua aplicação nos cursos de pos-graduaçâo lato sensu e stricto sensu em Administração, nas disciplinas de Metodologia e Casos para Ensino.Alternate :This case aims to promote a reflection on the teaching case writing process and directions for applying the method. In 2020, João Luiz Marinho, a doctoral candidate in Administration at the University of Learning (UNIAPRE), was challenged by Professor Fernando to write his first teaching case for application in the Organizational Strategies discipline, of which he was an intern in teaching. However, many questions about the construction and application of teaching cases probed João's thoughts, since he had no previous experience with the method, he had little practice in teaching, and the migration of classes to the online mode was very new. Thus, the proposal is to make students put themselves in João's place, in order to provide a debate on the writing and application of a case for online teaching. It is suggested that it be applied in lato sensu and stricto sensu graduate courses in Administration in the disciplines of Methodology and Teaching Cases.

Family Business Adapting a New Digital-Based Economy: Opportunities and Challenges for Future Research

Firms need to transform dramatically to maintain their operations and survive. The pandemic has shown how family businesses (FBs) are solving complex problems faster than non-family. They have demonstrated the flexibility to transform and adapt because of their closeness to the firm's processes and management and their social network inside and outside organizations that allow them to respond quickly to market needs based on a fast-making decisions process. FBs' knowledge, which is embedded in their values, making decisions process, and remaining for generations, requires resilient and robust management. The relationship between family values and FB management differentiates by their complexity and generational aspect. These relations demonstrate that personal values can influence professionalization, succession, and innovation processes. In this regard, there is a lack of research to understand the findings, practices, and processes associated with managing the knowledge flows through which FBs execute innovation strategies and to build on professionalization and succession capabilities that could provide different avenues of innovation and adaptation for dealing with turbulent and uncertain times. This editorial intends to provoke discussion on what we know about family businesses and how they face different challenges in a complex world to survive. FBs must develop adaptive strategies and strengthen crucial processes to generate a competitive and sustainable advantage. Knowledge management provides models and tools to reinforce tacit knowledge management's relevance in the professionalization and succession processes. Knowledge management becomes critical in an era in which uncertainty seems to be permanent.

COVID-19 and earnings management: a comparison between Chinese family and non-family enterprises

PurposeThe main objective of this study is to examine the impact of the COVID-19 pandemic on earnings management practices in China using a sample of family and non-family enterprises. More specifically, this study aims to examine whether the COVID-19 pandemic causes variation in Chinese listed family and non-family enterprises' operations, as reflected in the level of real earnings management (REM).Design/methodology/approachThis study uses three standardised REM indicators, namely, the abnormal level of cash flows from operations, the abnormal level of production costs and the abnormal level of discretionary expenses. Ordinary least squares (OLS) regressions are applied to compare the earnings management of Chinese family and non-family enterprises during the pre-pandemic period (2017–2019) and the pandemic period (2020).Findings The authors find that Chinese listed non-family enterprises tend to participate in more REM activities than family enterprises before the COVID-19 outbreak. However, the opposite is true during the pandemic. The authors also find that COVID-19 has increased the involvement of family and non-family enterprises in REM activities.Originality/valueThe results of previous studies based on REM using Chinese listed firms may not be applicable under the new social background of COVID-19. As the period after the COVID-19 outbreak is relatively recent, Chinese researchers have yet to study it comprehensively. The present study is amongst the first empirical attempts investigating the effect of a pandemic financial reporting by investigating whether and how the burst of the COVID-19 crisis affected financial reporting through the earnings management practices of listed Chinese family and non-family enterprises. Such information is crucial because it can provide analysis for all stakeholders to make better decisions.

I'D RATHER HAVE A FLY IN MY SOUP! MUTTERINGS OF MS. ZIZI IN PANDEMIC TIMES

Dilemma: In scenarios of great uncertainty due to the COVID-19 pandemic, is it still feasible to maintain the tradition of purely face-to-face sales, or is it time to join the delivery system? And is that enough? Educational objective: This case aims to provide students with experience of situations consistent with the organizational reality and the development of decision-making abilities, focusing on the dilemma of whether or not to implement an alternative service system, given the operating restrictions imposed by the COVID-19 pandemic. Contextualization: COVID-19 caused sweeping changes in the daily life of Brazilian enterprises, including the Eating Out sector (known in Portuguese as Alimentação For a do Lar - AFL). Ms. Zizi and her son Pedro, owners of a homemade food restaurant in the municipality of Goiânia, needed to reinvent themselves during the pandemic period, in order to avoid the losing, laying offstaff, and closing the establishment. Main topic: Decision-making in times of pandemic. Audience: Students at undergraduate level in business administration, in the disciplines of marketing, entrepreneurship and strategic planning. Originality/value: Students will play the role of managers and will be asked to make decisions about a series of issues that arise in the daily lives of companies in times of crisis. The study focuses on basic concepts of the Marketing Mix, Porter's Five Forces, Decision-Making theory and Analysis of the Competition, seeking to outline strategies to deal with contingences in times of pandemic, and increase the value proposition of the Gastrô Mineiro restaurant. Dilema: Em cenários de grandes incertezas decorrentes da pandemia, ainda é viável manter a tradição de apostar somente no atendimento presencial ou é hora de aderir ao sistema de delivery? Somente isso é suficiente? Objetivo educacional: Este caso de ensino propicia aos discentes vivências de situações condizentes com a realidade organizacional e o desenvolvimento da capacidade de tomada de decisão, ao analisar o dilema de implantação ou não de um sistema alternativo de atendimento, dadas as medidas restritivas de funcionamento decorrentes da pandemia da COVID-19. Contextualização: O advento da COVID-19 ocasionou mudanças drásticas no cotidiano dos empreendimentos brasileiros, inclusive no setor de Alimentação Fora do Lar (AFL). Dona Zizi e seu filho Pedro, donos de um restaurante de comida caseira no município de Goiânia, precisaram reinventar o formato do atendimento ao cliente no período pandêmico, com o intuito de evitar a perda da clientela, a demissão em massa de colaboradores e o fechamento do estabelecimento. Tea principal: Tomada de decisão em tempos de pandemia. Público: O caso pode ser aplicado a estudantes dos cursos de graduação em administração, nas disciplinas de marketing, empreendedorismo e planejamento estratégico. Originalidade/valor: Os discentes irão assumir o papel do gestor e tomar decisões sobre um leque de inquietações e problemas que surgiram no cotidiano do Gastrô Mineiro, no período da pandemia. Este caso de ensino resgata conceitos teóricos básicos sobre o Mix de Marketing, Cinco Forças de Porter, Teoria da Decisão e Análise da Concorrência, com objetivo de traçar estratégias que atendam as contingências decorrentes da pandemia e ampliar a proposta de valor do restaurante em estudo.

Building resilience during the Covid-19 pandemic: the journey of a small entrepreneurial family firm in Brazil

PurposeThe present study used a process approach to examine how a small entrepreneurial family business in the tourism industry evolved during different stages of the Covid-19 pandemic and across different dimensions of resilience.Design/methodology/approachThe research strategy consisted of a real-time longitudinal case study during the Covid-19 pandemic in Brazil, based on interviews conducted with the founders of the business.FindingsThe results show how the firm responded to the pandemic and moved through different stages – interruption, loss, resumption, and recovery – as the crisis evolved. During each stage, there were manifestations of different dimensions of organizational resilience: anticipation/awareness, coping and adaptation. The entrepreneurs mobilized several capabilities – emotional, cognitive, behavioral, and relational – during the different stages and across different dimensions to face and respond to the pandemic.Originality/valueThe contributions of the study stem from the lack of research on how small entrepreneurial family businesses in the tourism industry are impacted by disruptive events of long duration and multiple cycles. Specifically, the study contributes to the understanding of how this type of firm responds to these crises, mobilizing different capabilities at different stages and across different dimensions of organizational resilience.

The role of emotions in B2B product advertising on social media: a family business case study

PurposeThe outbreak of Covid-19 increased the average time spent on social media (SM). This led to a transformation in how companies manage their digital marketing channels and created additional pressure for business-to-business (B2B) and family businesses, which tend to focus more on personal relationships with customers and stakeholders than on the implementation of digital marketing strategies on SM. The present research examines the case study of a Facebook advertising campaign created to promote the products and business values of an Italian family firm specialising in the production and commercialisation of biostimulants for agriculture.Design/methodology/approachThe research aims to combine digital marketing avenues (i.e. a Facebook advertising campaign) with established psychological and behavioural theories, such as the dual process theories, by comparing the effects of two promotional videos (emotional vs functional).FindingsThe results suggest that emotional videos generate more passive behaviours, such as views, as well as active behaviours in the form of likes, comments and shares, while functional videos induce people to search for more information about the advertised products.Originality/valueThis is the first study to validate the role of Facebook advertising campaigns in developing an information-based approach to B2B family firms by testing the effectiveness of a targeted campaign comparing the impact of emotional and functional cues on increasing users' engagement while optimising the circulation of video content. The study helps to reduce the academic–practice gap by investigating the example of a fruitful integration between academic research and management practice.

Strategic responses of the family businesses in accommodation industry: lessons for overcoming crises

PurposeThe purpose of this study is threefold: 1) to examine the relevance of specific strategic orientations for family businesses in the context of an intense crisis such as the COVID-19 pandemic;2) to investigate the role of a family adaptability in surviving the crisis;and 3) to assess how proactive strategic responses connected with marketing or retrenchment responses connected with reducing costs relate to the expected survival of the crisis.Design/methodology/approachThe method adopted is a quantitative research approach. The theoretical framework uses a partial least squares structural equation modeling (PLS-SEM) for the data collected from an online survey of a sample of 544 family businesses in the accommodation industry.FindingsThis paper makes three main findings. First, family businesses that invest in operational marketing actions as a strategic response to the crisis have a high expectation of surviving the crisis. Second, family businesses that reduce their operational and labor costs as a strategic response have a low expectation of surviving the crisis. Third, the family business's adaptability is also fundamental to their expectation of survival.Originality/valueThis is the first paper to identify the possible reactions of family businesses to the COVID-19 crisis. the authors show that there are proactive or retrenchment strategic responses, and the authors relate those responses to the expectancy of surviving the crisis. This is also the first study to examine the relevance of family adaptability as a measure of the resilience of family businesses and, therefore, as a determinant of the expectation of surviving the crisis.

Bouncing forward or bouncing back? How family firms enact resilience in times of crisis

PurposeThe study aims to develop theoretical understanding about how family-run businesses navigate unexpected and highly disruptive events by examining how family-based resilience capacity is variously transformed into an organizational capability.Design/methodology/approachThe study relies on a qualitative comparative case study design to explore how Croatian family-run businesses navigated market and operational disruptions brought on by the global coronavirus (COVID-19) pandemic. Drawing on semi-structured interviews and organizational data, this study compares how family-run businesses operating in different industries experienced and coped with disruptions. Using inductive qualitative coding methods, patterns across codes were identified and aggregated into dimensions that describe two broad approaches for leveraging family social capital in the enactment of organizational resilience.FindingsThe analysis shows that family-run businesses may employ family social capital in retrospective and prospective ways. A retrospective approach involves targeted and conservative uses of family social capital, wherein the aim is to maintain organizational functioning and return to "business as usual”. In contrast, a prospective approach employs these resources in a more strategic and flexible way to adapt to a "new” future. While both approaches can enable firms to successfully navigate crises, these approaches differ in terms of their temporal orientation and implications for marketing flexibility.Originality/valueThe study contributes to a better understanding of how family social capital can be differentially leveraged in times of crises, and how these differences may stem from having temporal orientations that focus on either preserving the past or adapting to new conditions. The study advances theorizing at the intersection of organizational resilience and family business by deepening understanding of the heterogeneity of ways in which family businesses manage change for long-term business continuity. For owners and managers of family-run business, the study provides insights into how unexpected disruptions can be managed and how businesses might respond to fast-changing market conditions.

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

PurposeThe 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/approachThe 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.FindingsThe 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/valueThe 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.

Family businesses navigating the COVID-19 pandemic through a gender perspective: the role of external and internal factors in stimulating dynamic capability development

PurposeThe paper aims to decipher, through intertwined external and internal perspectives, how female and male owners of family businesses (FB) that have been affected by the pandemic develop new capabilities to respond to the market's crisis-related needs. Specifically, this study seeks to decipher the role of external support, mediated by the owner's psychological capital (i.e. internal perspective) and moderated by gender, on the development of capabilities related to the market's changing needs, drawing on the dynamic capabilities conceptualization.Design/methodology/approachA sample of responses from 261 Canadian FB owners was generated during the pandemic, and online questionnaires were distributed.FindingsRegression analyses and Hayes' PROCESS tool revealed that while external support directly invigorates capability development, external support is also mediated by psychological capital and moderated by gender, so that female owners were found less likely to use external support for capability development than men. These findings are explained by women's traditional responsibility in FB of protecting the family from external circumstances. Nevertheless, both women and men orchestrated external support, due to the higher psychological capital of FB, to develop capabilities that respond to pandemic-related market needs.Originality/valueThis study explores and demonstrates the unique navigation of FB owners during crises, and the role of the owner's gender in pursuing capability development. The study's value is in interconnecting external and internal perspectives while probing FB during crises. Implications for the ecosystem's conduct toward FB are discussed.

The impact of family business brand trust and crisis management practices on customer purchase intention during Covid-19

PurposeThe aim of the current study is to investigate the effect of consumers' brand trust in family businesses and the impact of crisis management practices on customer purchase intention during the period of Covid-19.Design/methodology/approachThis is a primary quantitative research on a sample of 817 consumers who bought products from 20 food and beverage family companies. Simple random sampling was used to collect the primary data. Data collection was made with the use of questionnaires. The questionnaires were developed based on previous studies and were tested in terms of reliability and validity.FindingsThe research findings indicate, among others, that there is a positive significant relationship between brand trust and purchase intention. As a result, the higher the trust of the consumers in a family business brand name, the higher their intention to make purchases. Additionally, it was found that the higher the performance of family businesses on crisis management practices, the more the consumers intent to make purchases.Research limitations/implicationsNonetheless, there are some limitations in the current research. First, the research sample consists of companies and consumers from a specific location, which can create issues regarding the generalization of the findings. Thus, to ensure improved research implications, a future research should include sample units from different locations and countries in order to reinforce the research findings and enable comparisons and more easily generalized outcomes. Moreover, a future research could assess additional factors that potentially affect purchase intention within a family business environment. Factors such as human resources and the relationship between customers and companies as well as communication and promotional efforts will allow the creation of a more stable and holistic framework and the prediction of consumer behavior. This potential follow-up research will further contribute to the theoretical argumentation of the findings and highlight the connection among purchase intention, trust and crisis managements practices within the family business environment.Practical implicationsRegarding the managerial and practical implications, the research outcomes can lead to specific strategies related to brand trust and crisis management practices. Specifically, family companies should invest on their brand name and their relationship with the consumers by reinforcing any action which can potentially affect the trust of the consumers. This could be realized by providing a safe purchase environment according to health and safety standards and through their response strategy and adaptability to the current pandemic conditions through the use of crisis management practices. Finally, a practical response to social and physical distancing measures would increase brand trust, and the performance on crisis management practices could also lead to sufficient financial outcomes since all these factors positively affect consumers' purchase intention.Originality/valueThe outbreak of the pandemic directly affected the profitability but also the viability of companies, regardless of industry. In particular, the impact that the pandemic had on family businesses, financially, organizationally and operationally, was massive and in many cases, catastrophic. Several studies have focused on family businesses, analyzing their structure, advantages and disadvantages. However, in these studies, there is little focus on the brand's influence on consumer behavior and market intention, especially compared to nonfamily businesses and under unique circumstances such as those of a pandemic.

Guest editorial: The future of family business: marketing challenges in times of crisis

[...]decision-makers face new conditions that affect their reasoning and their customer validation, forcing them to reframe their marketing operations (Syam and Sharma, 2018). [...]this issue contributes to family firm research. The third paper, "Assessing the AI-CRM technology capability for sustaining family businesses in times of crisis: the moderating role of strategic intent”, by Ranjan Chaudhuri Sheshadri Chatterjee, Sascha Kraus and Demetris Vrontis, investigates the potential for artificial-intelligence-integrated customer relationship management (AI-CRM) technology to sustain family businesses in times of crisis, assessing the moderating role of strategic intent. The sixth article, entitled "Effective business model adaptations in family SMEs in response to the COVID-19 crisis”, by Sofia Brunelli, Rafaela Gjergji, Valentina Lazzarotti, Salvatore Sciascia and Federico Visconti, tested the effects of two major business model adaptations – namely changes in value proposition and changes in target market – on a sample of 96 family SMEs.

Assessing the AI-CRM technology capability for sustaining family businesses in times of crisis: the moderating role of strategic intent

PurposeThis study assesses the capability of artificial intelligence integrated customer relationship management (AI-CRM) technology for sustaining family businesses in times of crisis, such as the COVID-19 pandemic. The study also investigates the moderating role of strategic intent in sustaining family businesses in times of crisis.Design/methodology/approachThe authors used dynamic capability view theory and related literature on family business and technology adoption to develop a conceptual model. This model has been validated using the structural equation modeling technique considering 332 usable responses from people of India involved in family businesses and technology adoption. The study also uses multigroup analysis to examine the moderating role of strategic intent.FindingsThe study finds that adoption of AI-CRM technology significantly and positively impacts dynamic capabilities of the family businesses, such as sensing, seizing and transforming capabilities, which in turn positively and significantly influences their sustainability during crises. The study also highlights the significant moderating impact of strategic intent for sustaining family business firms in uncertain times.Practical implicationsThis study has highlighted the importance for family businesses to adopt AI-CRM technology and its influence on their dynamic capabilities. The study also provides important inputs to the management of family businesses regarding adoption of new technologies and their significance during crises. The study also documents that strategic intent could help family businesses to survive during such times. The study is conducted in India and thus cannot be generalized.Originality/valueThis study table is unique in that it investigates the influence of AI-CRM technology and the moderating role of strategic intent on family business sustainability in times of crisis. Moreover, the proposed theoretical model is a unique model with explanative power of 71%.

Family firm competitiveness and owner involvement

PurposeIn many countries, small and medium-sizes enterprises (SMEs) are primarily responsible for wealth, economic growth, innovation and research and development. In this paper, the authors examine the impact of family ownership and owner involvement on the financial performance of unlisted Finnish SMEs.Design/methodology/approachThis is an empirical paper using a random sample of 1,137 non-listed Finnish SMEs. Through regression analyses and robustness tests, the authors examine the effects of family management, family and employee ownership and involvement.FindingsUsing profitability measures, the authors find family-owned and controlled SMEs perform significantly better than non-family firms. The number of family members actively involved in daily business operations bears a significant negative relation to firm performance. In contrast, non-family firms in which owners are actively involved, provide comparable returns to family firms, suggesting that in non-family firms active involvement contributes to performance. The authors find that employee ownership in SMEs does not provide an efficient way to compensate employees since more dispersed ownership does not lead to higher performance.Research limitations/implicationsSME employee ownership does not provide an efficient way to compensate employees since more dispersed ownership does not lead to higher performance.Practical implicationsIn the case of Finland, family ownership is an effective organisational structure. As the depth of the COVID pandemic remains uncertain, firms with committed ownership are key to the economic recovery.Originality/valueThe authors approach the family ownership and involvement issue from a different angle. Unlike earlier studies, the authors examine the impact of both family ownership and involvement on the financial performance of privately owned SMEs. This paper helps shed light on the role of family ownership and involvement as a possible explanatory factor of overall economic performance.

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

PurposeThe present paper aims at exploring effective business model adaptations in response to unexpected events such as the COVID-19 pandemic.Design/methodology/approachThe 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.FindingsResults 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/valueTo 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.

Family Businesses and Their Transition to Industry 4.0: Human Resource Perspectives From Bangladesh

Industry 4.0 (I4.0) is the new paradigm shift impacting businesses today. This study explores the state of Bangladeshi family businesses in adapting to I4.0 using a qualitative research methodology. Top management personnel were interviewed to capture their insights on transitioning to I4.0. The thematic analysis revealed four themes, current state of the businesses, challenges faced, pandemic impact on human resources, and future plans. Findings indicate high awareness and greater adoption of digital practices with COVID-19 acting as a catalyst. Although training is emphasized, there is a lack of focus on both career and general counselling, which may prove to be detrimental in the future. The study takes a resource-based view to find the bundle of resources acting as conditions for the family firms to evolve into the I4.0, thereby making a practical contribution to understanding the role of family businesses in implementing I4.0 policies to enrich their human resource competencies and leverage the benefits of I4.0.

Financiamiento a corto plazo de las micro y pequeñas empresas familiares del sector confección

Las micro y pequeñas empresas son una importante fuente de empleo en las economías subdesarrolladas, funcionan como agentes mitigadores de los efectos económicos de las grandes crisis. No obstante, una de las limitaciones más marcadas que les impide crecer y desarrollarse es el acceso limitado a la financiación. Este artículo analiza las fuentes de financiamiento de corto plazo utilizadas por las micro y pequeñas empresas familiares del sector confección de Barranquilla – Colombia. El estudio es descriptivo, de campo, no experimental, y la fuente de información la constituye un cuestionario de 27 ítems, aplicado a propietarios y/o gerentes de 93 establecimientos familiares afiliados a la Cámara de Comercio de Barranquilla. Los resultados muestran que estas unidades productivas manejan esquemas de financiamiento de corto plazo muy precarios, pues para mantener operaciones diarias recurren a fondos propios, así como también de familiares y amigos. Como siguiente opción muestran preferencias por fondos provenientes de prestamistas informales, los cuales son muy onerosos y representan una carga financiera que les impide crecer. En menor medida, hacen uso del crédito comercial y crédito bancario. Se concluye, que en términos generales el sector se mantiene en condiciones de subsistencia y sin posibilidades de ampliar la capacidad productiva a través de inversiones en bienes de capital, dado que no cuenta con los fondos necesarios y las garantías requeridas para financiar su expansión. Finalmente, bajo el escenario de la pandemia del COVID-19, se configura una situación de reducción del tamaño del sector.Alternate :Micro and small enterprises are an important source of employment in underdeveloped economies, functioning as mitigating agents of the economic effects of major crises. However, one of the most marked constraints that prevents them from growing and developing is limited access to finance. This article analyzes the sources of short-term financing used by micro and small family businesses in the garment sector of Barranquilla – Colombia. The study is descriptive, field, non-experimental, and the source of information is a questionnaire of 27 items, applied to owners and / or managers of 93 family establishments affiliated to the Chamber of Commerce of Barranquilla. The results show that these productive units manage very precarious short-term financing schemes, since to maintain daily operations they resort to their own funds, as well as family and friends. As a next option, they show preferences for funds from informal lenders, which are very onerous and represent a financial burden that prevents them from growing. To a lesser extent, they make use of business credit and bank credit. It is concluded that in general terms the sector remains in subsistence conditions and without possibilities to expand productive capacity through investments in capital goods, given that it does not have the necessary funds and guarantees required to finance its expansion. Finally, under the scenario of the COVID-19 pandemic, a situation of reduction in the size of the sector is configured.

How is risk different in family and non-family businesses? A comparative statistical analysis during the COVID-19 pandemic

Purpose>Risk is part of corporate activity and a consequence of the businesses' demands, the market and the changes in companies and their surroundings. The way that risk is managed is different between family and non-family businesses. The paper aims to compare the different risk types experienced in the context of the coronavirus disease (COVID-19) pandemic among family and non-family businesses and to analyze whether operational, legal, strategic and image risks influence financial risks.Design/methodology/approach>The nature of the study is quantitative and based on a questionnaire survey that analyses the perception of risks by 1,090 family businesses and 557 non-family businesses.Findings>The results show the existence of statistically significant differences in the perception of financial and legal risks between family and non-family businesses, where the former being the businesses that give more importance to these risks. The perception of operational, legal, strategic and image risks have a positive influence on the perception of financial risk in family and non-family businesses.Originality/value>The results obtained in the study are important because they allow an understanding about the differences in risk management between family and non-family businesses, which can lead to greater corporate sustainability and increased financial performance.

The Association between Outside Directors’ Compensation and ESG Performance: Evidence from Korean Firms

Environmental, social, and corporate governance (ESG) has become essential for corporate sustainability. Among ESG activities, we focus on governance structure since firms can properly engage in activities related to environmental and social responsibility only when their corporate governance structures are well established. Outside directors play an important role in governance structure since they monitor the management and provide expertise to the board of directors. In this study, we pay particular attention to the compensation of outside directors, which reflects the effort, expertise, and independence of outside directors. Based on data from listed firms on the Korea Stock Exchange in South Korea between 2014 and 2020, we examine the association between outside directors’ compensation and ESG performance in certain firms with unique governance structures, namely, chaebols (or family firms). We find that the compensation of outside directors is positively associated with ESG performance, implying that outside directors’ compensation motivates effective monitoring and advisement of management and has an incremental effect on ESG performance. We suggest that the compensation of outside directors is one of the key factors that can significantly affect ESG performance. Therefore, investors and policymakers may evaluate whether a firm is doing well in terms of ESG activities by examining the compensation of outside directors.

Unveiling the Direct Effects of Family Firm Heterogeneity on Environmental Performance

By combining agency theory and the resource- and capabilities-based view, this paper aims to unveil the influence of family firm heterogeneity on environmental performance. Previous results are inconsistent about how the specific features of this type of business contribute to better environmental protection performance. We analyse a number of variables related to the management, ownership and corporate governance characteristics of the family business and their individual influence on environmental performance. We test our hypotheses using a database of 748 family firms in the Spanish tourism sector. This economic sector, which is mostly composed of family businesses, puts great pressure on the environment. As such, family firms must take an active role in the resolution of the environmental problems that afflict society. We find that the effects of a family-controlled ownership and management structure on environmental performance are negative. Family-founder firms with a high degree of family control also are shown to have a negative relationship with environmental performance. However, the existence of a formal management mechanism, such as a management committee, emerges as the most powerful structural factor in facilitating the achievement of environmental objectives. The conclusions drawn from this study allow us to outline future lines of research as well as recommendations for practitioners. Our study responds to the call made in the literature to delve deeper into the heterogeneity of the family business, and specifically to determine which of its characteristic features allow this type of business to achieve better environmental performance.