Research Outputs
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.
Direct and indirect effects of SEWi, family human capital and social capital on organizational social capital in small family firms
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 BiobÃo 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.
Reputation and identity in family firms: Current state and gaps for future research
Research surrounding the strategic value of the reputation and identity of a family firm is still an incipient topic and there is not absolute clarity about the response the different interest groups could have when these elements are communicated to them. Starting from a systematic review of the literature of Web of Science, 56 articles published between 2000 and 2020 were analyzed. The results show a growing number of articles based on the reputation and transmission of the family identity of firms. The cites in this articles have also shown important growth, confirming the relevance this topic has had. This work provides a review of the current state and evolution of the literature surrounding this topic, discusses the different lines of research related to the reputation and transfer of family identity, and finally identifies gaps in the research that can orient the development of future work.
Effectuation and strategic evolution for sustainable longevity: The case of a 19th-generation family firm
Purpose: This article explains the causal mechanism supporting sustainable longevity by analysing the last three generations of one of the oldest family firms in Latin America. Design/methodology/approach: An explanatory single-case qualitative research based on critical realism explores why and how this family firm has been able to maintain its multigenerational longevity. Findings: Los Lingues's evolutionary strategy, driven by transgenerational entrepreneurship under effectuation, has supported this family firm's sustainable longevity. Its effectual logic emerged mainly from the richness of the firm's historical resources embedded in its identity, knowledge and social capital and priority to preserve socioemotional wealth. Originality/value: This study integrates socioemotional wealth and effectuation theory to explain a family firm's ability to survive through generations and sustain longevity. The study demonstrates the relevance of effectual logic in the entrepreneurial dynamics of a multigenerational family firm. Effectual logic drives the firm evolution and adaptation for sustainable longevity.
Family business performance in a post-disaster scenario: The influence of socioemotional wealth importance and ntrepreneurial orientation
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.
Effectiveness of signaling a firm family identity to jobseekers: proactiveness and innovativeness profile of the applicant
Purpose This study aims to determine how the communication of a family business identity in a recruitment call influences, directly and indirectly, the response of jobseekers, and whether this response varies according to the level of proactiveness and innovative of the applicants. Design/methodology/approach An experimental design using job advertisements on a LinkedIn recruitment call in Peru and Chile was implemented. The experiment simulates a job offer for a professional that could be filled by a business graduate student. The sample consisted of 171 surveys applied to university students in full-time higher education programs. Findings The results indicate that there is a positive indirect influence of family business signaling on the intention to pursue (through perceived prestige and career development opportunity). However, signaling family ownership of a company has a negative direct influence on jobseekers’ intentions to go to the recruitment call. When it comes to jobseekers with high and low levels of innovativeness and proactiveness, the results suggest that family business identity signaling is less effective among jobseekers with higher levels of proactiveness and innovativeness. Originality/value This article contributes to the theory of the family firm by advancing the understanding of the challenges that family businesses face when attracting talent. Our results enable family businesses to strategically adapt their hiring processes to enhance their appeal in the competitive labor market.