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 COVID19 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.

COVID-19 health crisis and family business performance: the moderating effect of family leadership

Purpose: In the context of the coronavirus disease 2019 (COVID-19) crisis, this article aims to analyze the resilience of family businesses in a developing country like Cameroon. As such, this study seeks to fill two gaps in the literature: first, by comparing the financial and social performance of family companies with those of non-family companies not listed on the stock exchange, and second, by comparing performance across family-run companies, according to the companies' mode of leadership in Cameroon, a developing country affected by COVID-19 like the rest of the world. Design/methodology/approach: Based on the literature review, the authors developed empirical models to identify the variables which influence the financial and social dimensions of business performance. These models were tested with multilinear regressions, using data collected from questionnaires distributed to 466 firms, of which 212 were family firms and 254 non-family firms. The authors completed our analyses with mean comparison tests to demonstrate whether our results are significantly different between family and non-family firms. Findings: The authors' multiple regressions and tests produced two main results – the financial and social performance of all Cameroonian firms declined sharply during the crisis, and with the firms' financial performance hit hardest, family firms have been more resilient to the crisis in terms of financial and social performance than non-family firms. The weak governance and social protection system, as well as an inefficient legal system, do not seem to negatively affect the performance of these Cameroonian firms – the effects of the COVID-19 pandemic on the performance of family firms were better managed in firms where family members are actively involved in management or control through family members' strong representation on the board of directors (BD). Research limitations/implications: The two main limitations of this study concern the governance of these companies included and the failure to take the characteristics of the manager into account. Investigating other governance variables, such as the composition of the BD or the participation of employees in the capital, would enable us to refine the authors' interpretations of the companies' financial and social performance. Another limitation is the fact that the characteristics of the manager were not considered, especially when the manager is a family member. Exploring this variable would make studying the generational aspect of family businesses possible. Practical implications: Family companies are more resilient to crisis because of the companies' long-term focus, which also encourages the companies to maintain the companies' social policy and to avoid redundancies as far as possible. Weak systems of governance and social protection, as well as an ineffective legal system, do not negatively affect the performance of Cameroonian family companies. The results also suggest that family shareholders should become more involved in the management and control of family's firms to make the firms financially and socially resilient and in so doing drastically reduce the impact of crises. Social implications: This study shows, in particular, how family firms are more socially resilient than other firms in times of crisis (by resorting less often to redundancies). Family firms should, therefore, arguably benefit the most from public support during crises. Originality/value: The authors' research makes two main contributions to the literature on family businesses. The results first of all show that Cameroonian family firms have thus far performed better financially and socially during the COVID-19 period than non-family firms. Second, this research focuses on differences in performance based on family business management types during this specific crisis period. The results suggest that the most resilient family firms, in terms of performance, are those in which the family is involved in the management or control of the BD. © 2023, Emerald Publishing Lim ted.

Promotion of entrepreneurship through business incubators: Regional analysis in Spain

This study focuses on business incubators in Spain, which helps compare regions within Spain. This study has four goals: to shape taxonomy of the Spanish business incubator system, to compare between regions, to identify the factors affecting incubators' success, and to analyse during the COVID pandemic. Of the 478 business incubators registered in Spain, 89 were selected as the sample for study. Business incubators provide office space, equipment and mentoring services, as well as financial, legal and administrative support for entrepreneurs and start-up companies. Non-parametric statistical techniques are used to compare between regions, considering each regional business incubator as an ecosystem. The study focuses on six Spanish regions: Madrid, Catalonia, Castile-Leon, Aragon, Basque Country and Galicia. © 2023 Elsevier Inc.

Understanding the relevance of family business, gender and value chains for SMEs' innovation in the context of COVID-19

Purpose: In this paper, the authors present an empirical framework that incorporates different factors of the impact of COVID-19 on small- and medium-sized enterprises (SMEs) in La Rioja, Spain, in relation to the value chain, gender and family business and allows the evaluation of these impacts on the SMEs' outcomes. Design/methodology/approach: The authors conduct exploratory research based on phone interviews with 329 business managers from SMEs in La Rioja (Spain), from June 1 to June 30 2021, using ordinary least squares linear regression and matching procedures to test the study hypotheses. Findings: The results show that the impact of COVID-19 related to primary activities in adding value, such as inbound logistics, operations and marketing, have a positive influence on innovation outcomes in SMEs, as do female managers. Family SMEs present poorer innovation outcomes. Practical implications: At the organizational level, this paper may be of interest to management, and at the national and regional levels to policymakers, since it could help to develop policies that support SMEs' sourcing, operations and marketing in order to prepare for potential value chain disruptions. Additionally, this research may help decision-makers to foster and promote innovation in SMEs as a way of ensuring their resilience. Originality/value: In this paper, the authors provide novel evidence about the effect of COVID-19 in SMEs. Moreover, it has been shown that the COVID-19 pandemic has triggered the redefinition of supply chains at the organizational level. © 2023, Emerald Publishing Limited.

Job-demand and family business resources in pandemic context: How they influence burnout and job satisfaction.

This research aims to explore how work demands and resource variables affect the burnout and satisfaction of employees of family businesses in the context of the pandemic (COVID-19) and the moderation effect of fear of COVID-19 on this relationship. A sample of 214 Chilean family business employees is used for hypotheses testing. Results indicate that the demands and resources partially explain the burnout and satisfaction of employees of family firms during the pandemic. Employees' fear of COVID-19 moderates the relationship between resources-demands and burnout-job satisfaction in family firms. This work contributes to understanding how these organizations can manage adverse scenarios to survive and continue operations.

Food 4.0 for competing during the COVID-19 pandemic: experimenting digitalization in family firms

PurposeWithin food industry several changes and innovations are affecting the management of the entire supply chain (production, logistics, etc.). As strategy for the survival and competition, digitalization has assumed a crucial role during the pandemic emergence by causing the reconfiguration of traditional chains and business models. Framed in these premises, the research analyses how digital technologies have innovated the sub-chains of bakery products and pasta within food industry with reference to customers' interactions, delivery and marketing during the COVID-19 pandemic emergence.Design/methodology/approachMoving from a critical literature review about the perspectives of digital technologies within the tradition of food industry, action research has been adopted to analyze in deep a case study of the start-up "ArteBianca Delivery" located in South Italy. Through this method, researchers have been deeply involved within the start-up to face the challenge of transforming the marketing and customer care into digital ones due to the COVID-19 restriction.FindingsFindings provide empirical evidence about the reconfiguration of the traditional business model of a family firm in the food sector into a digital one with the start-up "ArteBianca Delivery". The marketing, delivery, e-commerce and customer care components of the business models have been supported and enhanced through the adoption of digital tools, such as mobile applications and social technologies useful both for users and for a more urgent digitization of company.Practical implicationsImplications for practice can be identified into the pattern of digital transformation implemented as well as in the opportunity of replication and contextualization of the results to other companies looking for setting up a digital strategy.Originality/valueElements of original contribution can be identified into: (1) the exploration of digital transformation in food family firms caused by the pandemic emergence, (2) the contextualization of the digital transformation to the sub-chains of bakery and pasta and (3) the geographical location of the case.

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.

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.

Family firm succession through the lens of technology intelligence

Succession is often a critical event in the lifecycle of any organization. Consequently, an extensive body of literature explores family firm succession, and includes studies on integrated succession frameworks. Notwithstanding the large, illuminating body of literature, we believe that family firm succession is worth a fresh reexamination and consolidation to translate the findings into a powerful planning and communication tool, especially as all firms are facing a ‘new normal’ and their leaders are seeking novel perspectives and approaches amidst the COVID-19 disruption. We thus offer a systemic and systematic framework for family firm succession planning, incorporating ideas from the technology intelligence literature. Since relationship building can ease the succession process and relationships are built through communication, we also present a succession roadmap as a communication tool that can assist in making this process part of the regular business routines.

Uncovering hidden human capital in uncertain times by exploring strategic resources in Spanish wineries

PurposeThe purpose of this paper is to explore the continuous identification of tangible and intangible strategic resources needed to achieve competitive advantages in uncertain times in Spanish wineries, highlighting the critical value of human capital.Design/methodology/approachBy means of a case study of a Spanish Sherry winery theoretically based on the resource-based view (RBV) of the firm, the paper focuses on the influence of environmental uncertainty on firms’ strategic resources and the need for in-depth knowledge. Direct participation and experience in the business have allowed access to data for longitudinal exploratory analysis.FindingsHuman capital, especially managers’ knowledge and experience, has been the key to the survival and success of the company analysed, throughout its history.Practical implicationsThe paper guides managers, especially in microenterprises and SMEs, on the inclusion among the firm’s strategic resources of a part of their own human capital that is generally not considered.Originality/valueThis paper contributes to the RBV and self-reflection theory by demonstrating the value of human capital in a small family business under extremely uncertain times.