Pursuing innovative actions during Covid-19 crisis: a qualitative analysis of family firms’ resilience
PDF

Keywords

Resilience; Family Firms; Covid-19; Innovative actions

How to Cite

Cucino, V., Ferrigno, G., & Piccaluga, A. (2023). Pursuing innovative actions during Covid-19 crisis: a qualitative analysis of family firms’ resilience. Piccola Impresa / Small Business, (2). https://doi.org/10.14596/pisb.2947
Received 2021-09-01
Accepted 2022-09-10
Published 2023-02-07

Abstract

Purpose: The study aims to broaden and refine the extant theory in the area of resilience in family firms during a grand challenge such as Covid-19. More specifically, the study aims to explore how characteristics that normally contribute to the resilience of family businesses also influence their innovative actions when facing a grand challenge

Design/methodology/approach. This study reviews what has been written on resilience in family firms and their innovative actions in the exceptional context of Covid-19. Then, through an inductive approach based on multiple case studies, qualitative data (primary and secondary sources of information) collected from five Italian family businesses that have demonstrated success in responding to Covid-19 are triangulated.

Findings.  The findings seem to reveal that, during Covid-19, some features that normally contribute to the resilience of family firms (i.e. trust, long-term orientation, centralized and personalized authority structures, and patient capital) also contribute to their resilience, through innovative actions, to react to the Covid-19 grand challenge.

Originality  of  the  study. The study reveals that a further element (namely purpose driven orientation) not previously discussed in family business literature allowed the firms analyzed to be resilient during the Covid-19. Drawing on these findings, our paper aims to enrich the current understanding of family firms’ resilience for both academics and managers.

https://doi.org/10.14596/pisb.2947
PDF

References

Amata, R., Dagnino, G. B., Minà, A., & Picone, P. M. (2021). Managing coopetition in diversified firms: Insights from a qualitative case study. Long Range Planning, 102128.

Auger, M. W., Savoie, N., & Savoie Jr, E. (2019). Commentary on “Family firm R&D investments in the 2007–2009 Great Recession”. Journal of Family Business Strategy, 10(4): 100314

Banks, N. (2020) Automotive, Motor Racing, Architecture, Design, Science Unite In The Fight Against COVID-19. Available at: https://www.forbes.com/sites/nargessban ks/2020/04/01/design-fights-covid-19/#67c8d2c6560.

Berrone, P., Cruz, C., & Gomez-Mejia, L. R. (2012). Socioemotional wealth in family firms: Theoretical dimensions, assessment approaches, and agenda for future research. Family business review, 25(3): 258-279.

Bullough, A., & Renko, M. (2013). Entrepreneurial resilience during challenging times. Business Horizons, 56(3): 343-350. https://doi.org/10.1016/j.bushor.2013.01.001

Campopiano, G., Massis, A. D., & Kotlar, J. (2019). Environmental jolts, family-centered non-economic goals, and innovation: a framework of family firm resilience. In The Palgrave handbook of heterogeneity among family firms (pp. 773-789). Palgrave Macmillan, Cham.

Casprini, E., De Massis, A., Di Minin, A., Frattini, F. & Piccaluga, A. (2017). How family firms execute open innovation strategies: the Loccioni case. Journal of Knowledge Management, 21(6): 1459-1485. https://doi.org/10.1108/JKM-11-2016-0515

Casprini, E., Pucci, T., & Zanni, L. (2014). Business model shifts: a case study on firms that apply high technology to cultural goods. Technology Analysis & Strategic Management, 26(2):171–187. https://doi.org/10.1080/09537325.2013.850474

Cesaroni, F. M., Sentuti, A., & Cubico, S. (2020). Small family firms and strategies coping the economic crisis: The influence of socio-emotional wealth. In Entrepreneurship and Family Business Vitality (pp. 27-48). Springer, Cham.

Chadwick, I. C., & Raver, J. L. (2020). Psychological resilience and its downstream effects for business survival in nascent entrepreneurship. Entrepreneurship Theory and Practice, 44(2): 233-255. https://doi.org/10.1177/1042258718801597

Chesbrough, H. (2020). To recover faster from Covid-19, open up: Managerial implications from an open innovation perspective. Industrial Marketing Management. https://doi.org/10.1016/j.indmarman.2020.04.010

Chrisman, J. J., Chua, J. H., & Steier, L. P. (2011). Resilience of family firms: An introduction. Entrepreneurship theory and practice, 35(6): 1107-1119. https://doi.org/10.1111/j.1540-6520.2011.00493.x

Chrisman, J. J., Chua, J. H., Pearson, A. W., & Barnett, T. (2012). Family involvement, family influence, and family–centered non–economic goals in small firms. Entrepreneurship theory and practice, 36(2): 267-293.

Chrisman, J. J., Chua, J. H., Sharma, P., Yoder & T. R. (2009). Guiding family business succession through the succession process: A step-by-step guide for CPA advisors. CPA Journal, 79: 48-51.

Chrisman, J.J., Chua, J.H., Kellermanns, F.W., & Chang, E.P.C. (2007). Are family managers agents or stewards? An exploratory study in privately held family firms. Journal of Business Research, 60: 1030–1038

Christopherson S., Michie J. & Tyler P. (2010). Regional resilience: theoretical and empirical perspectives. Cambridge Journal of Regions Economies and Society, 3: 3-10. https://doi.org/10.1093/cjres/rsq004

Cloutier, C., & Langley, A. (2020). What makes a process theoretical contribution?. Organization Theory, 1(1), 2631787720902473.

Conz, E., Lamb, P. W., & De Massis, A. (2020). Practicing resilience in family firms: An investigation through phenomenography. Journal of Family Business Strategy, 11(2): 100355.

Covin, J.G. & Slevin, D.P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10(1): 75–87. https://doi.org/10.1002/smj.4250100107

Craig, J. B. L., & Dibrell, C. (2006). The natural environment, innovation, and firm performance: A comparative study. Family Business Review, 19(4): 275-288. https://doi.org/10.1111/j.1741-6248.2006.00075.x

Cucino, V., Ferrigno, G., & Piccaluga, A. (2021). Recognizing opportunities during the crisis: a longitudinal analysis of Italian SMEs during Covid-19 crisis. In Leveraging intersections in management theory and practice (pp. 37-41). Fondazione CUEIM.

De Massis, A. & N.J. Foss (2018). Advancing family business research: The promise of microfoundations. Family Business Review, 31 (4): 386–396.

De Massis, A., & Kotlar, J. (2014). The case study method in family business research: Guidelines for qualitative scholarship. Journal of Family Business Strategy, 5(1): 15-29. https://doi.org/10.1016/j.jfbs.2014.01.007

De Massis, A., Frattini, F., Pizzurno, E., & Cassia, L. (2013). Product innovation in family vs. non-family firms: An exploratory analysis. Journal of Small Business Management. 53(1): 1-36. https://doi.org/10.1111/jsbm.12068

De Carolis, D. M., Yang, Y., Deeds, D. L., & Nelling, E. (2009). Weathering the storm: the benefit of resources to high‐technology ventures navigating adverse events. Strategic Entrepreneurship Journal, 3(2): 147-160.

Dell'Era, C., Di Minin, A., Ferrigno, G., Frattini, F., Landoni, P., & Verganti, R. (2020). Value capture in open innovation processes with radical circles: A qualitative analysis of firms’ collaborations with Slow Food, Memphis, and Free Software Foundation. Technological Forecasting and Social Change, 158, 120128.

Dyer Jr, W. G., & Whetten, D. A. (2006). Family firms and social responsibility: Preliminary evidence from the S&P 500. Entrepreneurship Theory and Practice, 30(6): 785-802.

Eddleston, K. A., Chrisman, J. J., Steier, L. P., & Chua, J. H. (2010). Governance and trust in family firms: An introduction. Entrepreneurship Theory and Practice, 34(6): 1043-1056.

Eisenhardt, K. M. (1989). Building Theories from Case Study Research. Academy of Management Review, 14(4): 532–550.

Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities and challenges. Academy of management journal, 50(1), 25-32.

Erdogan, I., Rondi, E., & De Massis, A. (2020). Managing the tradition and innovation paradox in family firms: A family imprinting perspective. Entrepreneurship theory and practice, 44(1): 20-54. https://doi.org/10.11 77/1042258719839712

Ferrigno, G. (2017). Looking for alliance portfolio characteristics (pp. 177-202). Charlotte, NC: Information Age Publishing.

Ferrigno G. & Cucino V. (2021). Innovating and transforming during covid-19. Insights from italian firms. R&D Management, 50(4): 325-338. https://doi.org/10.1111/radm.12469

Ferrigno, G., Del Sarto, N., Cucino, V. & Piccaluga, A. (2022).Connecting organizational learning and open innovation research: an integrative framework and insights from case studies of strategic alliances. The Learning Organization, 29(6): 615-634. https://doi.org/10.1108/TLO-03-2021-0030,

Fini, R., Grimaldi, R., Marzocchi, G. L., & Sobrero, M. (2012). The determinants of corporate entrepreneurial intention within small and newly established firms. Entrepreneurship Theory and Practice, 36(2): 387-414. https://doi.org/10.1111/j.1540-6520.2010.00411.x

Fletcher, D., De Massis A. & Nordqvist M. (2016). Qualitative research practices and family business scholarship: A review and future research agenda. Journal of Family Business Strategy, 7 (1): 8–25.

Forbes, D. P., & Milliken, F. J. (1999). Cognition and corporate governance: Understanding boards of directors as strategic decision-making groups. Academy of management review, 24(3): 489-505.

Gedajlovic, E., & Carney, M. (2010). Markets, hierarchies, and families: Toward a transaction cost theory of the family firm. Entrepreneurship Theory and Practice, 34(6): 1145-1172. https://doi.org/10.1111/j.1540-6520.2010.00418.x

Gerring, J. (2006). Case study research: Principles and practices. Cambridge university press.

Giovannini, E., Benczur, P., Campolongo, F., Cariboni, J., & Manca, A. R. (2020). Time for transformative resilience: the COVID-19 emergency (No. JRC120489). Joint Research Centre (Seville site).

Gittell, J. H., Cameron, K., Lim, S., & Rivas, V. (2006). Relationships, layoffs, and organizational resilience: Airline industry responses to September 11. The Journal of Applied Behavioral Science, 42(3): 300-329. https://doi.org/10.1177/0021886306286466

Gomez-Mejia, L.R., Cruz, C., Berrone, P. & De Castro, J. (2011). The bind that ties: socioemotional wealth preservation in family firms. Academy of Management Annals, 5(1): 653-707. https://doi.org/10.5465/19416520.2011.593320

Gómez-Mejía, L. R., Haynes, K. T., Núñez-Nickel, M., Jacobson, K. J., & Moyano-Fuentes, J. (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative science quarterly, 52(1): 106-137.

Gómez-Mejia, L.R., Núñez-Nickel, M., & Gutierrez, I. (2001). The role of family ties in agency contracts. Academy of Management Journal, 44: 81–95. https://doi.org/10.5465/3069338

Hauck, J., Suess-Reyes, J., Beck, S., Prügl, R., & Frank, H. (2016). Measuring socioemotional wealth in family-owned and-managed firms: A validation and short form of the FIBER Scale. Journal of Family Business Strategy, 7(3): 133-148.

Hitt, M.A., R.D. Ireland, S.M. Camp & D.L. Sexton (2001). Strategic entrepreneurship: entrepreneurial strategies for wealth creation. Strategic Management Journal, 22: 479–91.

James, H.S. (1999). Owner as manager, extended horizons and the family firm. International Journal of the Economics of Business, 6(1): 41–55. https://doi.org/10.1080/13571519984304

Jiang, Y., & Rüling, C. C. (2019). Opening the black box of effectuation processes: characteristics and dominant types. Entrepreneurship Theory and Practice, 43(1):171-202.

Jick, T. D. (1979). Mixing qualitative and quantitative methods: Triangulation in action. Administrative science quarterly, 24(4): 602-611.

Kammerlander, N. & M. Ganter (2015). An attention-based view of family firm adaptation to discontinuous technological change: Exploring the role of family CEOs’ noneconomic goals. Journal of Product Innovation Management, 32: 361–383.

Kammerlander, N., & De Massis, A. (2020). Frequently asked questions in qualitative family business research and some guidelines to avoid risky paths. In Handbook of qualitative research methods for family business. Edward Elgar Publishing

Kontinen, T. & Ojala, A. (2010), ‘Bridging social capital in the foreign market entry and entry mode change of family SMEs’, Electronic Journal of Family Business Studies, 4(1): 24–38.

Korber, S., & McNaughton, R. B. (2018). Resilience and entrepreneurship: a systematic literature review. International Journal of Entrepreneurial Behavior & Research, 24(7): 1129-1154. 10.1108/IJEBR-10-2016-0356

Kraus, S., Clauss, T., Breier, M., Gast, J., Zardini, A., & Tiberius, V. (2020). The economics of COVID-19: initial empirical evidence on how family firms in five European countries cope with the corona crisis. International Journal of Entrepreneurial Behavior and Research. 26(5): 1067-1092. https://doi.org/10.1108/IJEBR-04-2020-0214

Kuckertz, A., Brändle, L., Gaudig, A., Hinderer, S., Reyes, C. A. M., Prochotta, A., ... and Berger, E. S. (2020). Startups in times of crisis–A rapid response to the COVID-19 pandemic. Journal of Business Venturing Insights, 13:e00169.

Lazzeroni, M. (2016). La resilienza delle piccole città. Riflessioni teoriche e casi di studio (Vol. 1, pp. 1-200). Pisa University Press.

Le Breton-Miller, I. & Miller, D. (2006). Why do some family businesses out-compete? Governance, long-term orientations, and sustainable capability. Entrepreneurship Theory and Practice, 30: 731–746

Le Breton-Miller, I. & Miller, D. (2011). Family firms and the advantage of multitemporality. Entrepreneurship Theory and Practice, 35(6): 1171–1177. https://doi.org/10.1111/j.1540-6520.2011.00496.x

Lee, T. W., Mitchell, T. R. & Sablynski, C. J. (1999). Qualitative Research in Organizational and Vocational Psychology, 1979–1999. Journal of Vocational Behavior, 55(2): 161–187. https://doi.org/10.1006/jvbe.1999.1707.

Lengnick-Hall, C. A., & Beck, T. E. (2005). Adaptive fit versus robust transformation: How organizations respond to environmental change. Journal of Management, 31(5): 738-757.

Lengnick-Hall, C. A., Beck, T.E., & Lengnick-Hall,M. L. (2011). Developing a capacity for organizational resilience through strategic human resource management. Human Resource Management Review, 21(3): 243–255. https://doi.org/10.1016/j.hrmr.2010.07.001

Lohe, F. W., & Calabrò, A. (2017). Please do not disturb! Differentiating board tasks in family and non-family firms during financial distress. Scandinavian Journal of Management, 33(1): 36-49.

Long, R.G. (2011), ‘Social exchange in building, modeling, and managing family social capital’, Entrepreneurship Theory and Practice, 35(6): 1229–36. https://doi.org/10.1111/j.1540-6520.2011.00500.x

Lortie, J., Cox, K. C., Castro, S., & Castrogiovanni, G. J. (2021). Measuring Social Entrepreneurship: Identifying and Assessing the Performance of Social Entrepreneurial Ventures. Journal of Social Entrepreneurship, 1-29.

Lowenstein, G. & Thaler, R. (1989). Anomalies: Intertemporal choice. Journal of Economic Perspectives, 3, 181–193.

Lumpkin, G. T., & Bacq, S. (2021). Family business, community embeddedness, and civic wealth creation. Journal of Family Business Strategy, 100469.

Lumpkin, G.T. & Brigham, K.H. (2011). Long-term orientation and intertemporal choice in family firms. Entrepreneurship Theory and Practice, 35(6): 1149–1169. https://doi.org/10.1111/j.1540-6520.2011.00495.x

Mayer, R.C. , Davis, J.H. , and Schoorman, R.D. (1995). An integrative model of organizational trust. Academy of Management Review, 20: 709–734.

Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: An expanded sourcebook. sage.

Nahapiet, J. & S. Ghoshal (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23: 242–66.

Nason, R. S., & Sharma, P. (2013). Introduction: Exploring transgenerational entrepreneurship: The role of intangible resources. In Exploring Transgenerational Entrepreneurship. Edward Elgar Publishing.

OECD (2020). Coronavirus (COVID-19): SME policy responses. Www.oecd.org. http://www.oecd.org/coronavirus/policy-responses/coronavirus-covid-19-sme-policyresponses-04440101/

Ozcan, P., & Eisenhardt, K. M. (2009). Origin of alliance portfolios: Entrepreneurs, network strategies, and firm performance. Academy of management journal, 52(2): 246-279. https://doi.org/10.5465/amj.2009.37308021

Passarelli, M., Bongiorno, G., Cucino, V., & Cariola, A. (2023). Adopting new technologies during the crisis: An empirical analysis of agricultural sector. Technological Forecasting and Social Change, 186: 122106. https://doi.org/10.1016/j.techfore.2022.122106

Patel, P. C., & Fiet, J. O. (2011). Knowledge combination and the potential advantages of family firms in searching for opportunities. Entrepreneurship Theory and Practice, 35(6): 1179-1197. https://doi.org/10.1111/j.1540-6520.2011.00497.x

Pepe, E., Bajardi, P., Gauvin, L., Privitera, F., Lake, B., Cattuto, C., & Tizzoni, M. (2020). COVID-19 outbreak response, a dataset to assess mobility changes in Italy following national lockdown. Scientific data, 7(1): 1-7.

Ruddin, L. P. (2006). You can generalize stupid! Social scientists, Bent Flyvbjerg, and case study methodology. Qualitative inquiry, 12(4): 797-812. https://doi.org/10.1177/1077800406288622

Sirmon, D.G. & Hitt, M.A. (2003). Managing resource: Linking unique resource, management and wealth creation in family firms. Entrepreneurship Theory and Practice, 27(4): 339–358. https://doi.org/10.1111/1540-8520.t01-1-00013

Stanley, L. J., and McDowell, W. (2014). The role of interorganizational trust and organizational efficacy in family and nonfamily firms. Journal of Family Business Strategy, 5(3): 264-275.

Steier, L. (2005). Executive succession in entrepreneurial business. In M. Hitt and D. Ireland (Eds.), The Blackwell encyclopedic dictionary of entrepreneurship (2nd ed., Vol. 2, pp. 125–128). Oxford: Blackwell.

Strike, V.M. & C. Rerup (2016). Mediated sensemaking. Academy of Management Journal, 59 (3): 880–905.

Sundaramurthy, C. (2008). Sustaining trust within family businesses. Family business review, 21(1): 89-102.

Steier, L. (2001). Family firms, plural forms of governance, and the evolving role of trust. Family Business Review, 14(4): 353-368.

Tognini, G. (2020) Coronavirus Business Tracker: How The Private Sector Is Fighting The COVID-19 Pandemic. Available at: https://www.forbes.com/sites/giaco motognini/2020/04/01/coronavirus-business-trackerhow-the-private-sector-is-fighting-the-covid-19-pande mic/#1eb54a475899.

Tsoukas, H., & Chia, R. (2002). On organizational becoming: Rethinking organizational change. Organization science, 13(5): 567-582.

Weber, R. P. (1990). “Basic content analysis” (No. 49). Sage.

Weick, K. E., Sutcliffe, K. M., & Obstfeld, D. 1999. Organizing for high reliability: Processes of collective mindfulness. In B. M. Staw and R. I. Sutton (Eds.), Research in organizational behavior (pp. 81–123). Greenwich, CT: JAI Press.

Williams, T. A., & Shepherd, D. A. (2016). Building resilience or providing sustenance: Different paths of emergent ventures in the aftermath of the Haiti earthquake. Academy of Management Journal, 59(6): 2069-2102. https://doi.org/10.5465/amj.2015.0682

Wright, J.P., F.T. Cullen & J.T. Miller (2001). Family social capital and delinquent involvement. Journal of Criminal Justice, 29: 1–9.

Yin, R. K. (2018). Case study research and applications, 6th edition. Los Angeles: SAGE Publications Inc.

Zellweger, T.M. and Nason, R.S. (2008). A stakeholder perspective on family firm performance. Family Business Review, 21: 203–216. http://doi.org/10.1111/j.1741-6248.2008.00123.x

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Copyright (c) 2023 Valentina Cucino, Giulio Ferrigno, Andrea Piccaluga