Dr. Llanos-Contreras, Orlando

Natural disasters are becoming more frequent and severe and pose a threat to family firms' survival. It is important to address the rarely examined question of how the variables of socioemotional wealth importance (SEWi) and entrepreneurial orientation (EO) interact to influence the performance of family businesses in a post-disaster scenario. This study is based on a sample of 307 family businesses that suffered damage as a result of the 2010 earthquake in the Province of Concepción, Chile. Comparative analysis was performed using partial least squares structural equation modeling (PLS-SEM) and qualitative comparative analysis (QCA). The PLS-SEM results support all study hypotheses. The QCA results yield five models that explain post-disaster performance. The model with the greatest coverage includes the EO variables of competitive aggressiveness, internal innovativeness, and external innovativeness. However, SEWi is relevant in terms of its interaction with the rest of the variables in three of the five models.

Given the importance of social capital in organizations, this research answers the question of how socioemotional wealth importance (SEWi), family human capital and family social capital influence organizational social capital in small family firms. Based on a sample of 334 small family businesses from the Biobío Region in Chile, a partial least squares structural equation modeling analysis (PLS-SEM) was performed. The results do not provide support for the predicted direct influence of family social capital on organizational social capital, but they support an indirect influence through SEWi and family human capital, both of which have a direct and positive influence on family firms’ organizational social capital. This means that SEWi and family human capital play a central role in generating organizational social capital in small family firms. It also suggests that both ability and willingness of family businesses play a role in allowing these firms to successfully transfer social capital from the family to the business system.

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.