Family business resilience in crisis: study case analysis in a collectivist society
Abstract
In an era marked by persistent challenges and uncertainties, gaining insights into how family businesses navigate crises becomes imperative. While previous research has delved into the resilience of family firms, there is a notable absence of a comprehensive exploration into how inherent traits in family businesses, particularly within collectivist societies, contribute to their resilience during crises. This study aims to fill this gap and elucidate the distinctive dynamics and behaviours exhibited by family businesses in such cultural contexts. Utilising qualitative case studies and interviews, this research delves into nuanced insights into the dynamic approaches employed by these businesses. The family firms demonstrated adaptability by adjusting their operations and leveraged human resources by seeking support from family members. Additionally, they showcased creativity in enhancing market offerings. The study also reveals unique behaviours, particularly resilience through collaboration with competitors. This research makes an academic contribution by offering insights into the behaviour of family businesses within collectivist cultural contexts during crises. From a practical standpoint, it informs the development of tailored crisis management strategies for family business owners and policymakers, underscoring the significance of collaboration among competitors. The study emphasizes avenues for fostering innovative approaches, promoting resilience, and ensuring sustainability within the ever-evolving business landscape. Furthermore, it establishes a foundation for future explorations, urging further investigation into crisis adaptation strategies tailored to the cultural contexts in which family businesses are situated.
Keyword : family business, crisis management, resilience, collectivist society, case study
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Anggadwita, G., Permatasari, A., Alamanda, D. T., & Profityo, W. B. (2022). Exploring women’s initiatives for family business resilience during the COVID-19 pandemic. Journal of Family Business Management, 13(3). https://doi.org/10.1108/JFBM-02-2022-0014
Arregle, J.-L., Hitt, M. A., Sirmon, D. G., & Very, P. (2007). The development of organizational social capital: Attributes of family firms. Journal of Management Studies, 44(1), 73–95. https://doi.org/10.1111/j.1467-6486.2007.00665.x
Au, K., & Kwan, H. K. (2009). Start-up capital and Chinese entrepreneurs: The role of family. Entrepreneurship Theory and Practice, 33(4), 889–908. https://doi.org/10.1111/j.1540-6520.2009.00331.x
Basu, S. (2023). Women’s entrepreneurial resistance to the COVID-19 pandemic inside handloom family enterprises: A case study of West Bengal, India. International Journal of Gender and Entrepreneurship, 15(4), 325–340. https://doi.org/10.1108/IJGE-01-2023-0024
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. https://doi.org/10.1177/0894486511435355
Bressan, A., Duarte Alonso, A., Vu, O. T. K., & Borer, D. (2023). Surviving the unprecedented: Family firms under COVID-19. Management Research Review, 46(11). https://doi.org/10.1108/MRR-06-2022-0430
Burnard, K., & Bhamra, R. (2011). Organisational resilience: Development of a conceptual framework for organisational responses. International Journal of Production Research, 49(18), 5581–5599. https://doi.org/10.1080/00207543.2011.563827
Carr, J. C., Cole, M. S., Ring, J. K., & Blettner, D. P. (2011). A measure of variations in internal social capital among family firms. Entrepreneurship Theory and Practice, 35(6), 1207–1227. https://doi.org/10.1111/j.1540-6520.2011.00499.x
Chang, E. P. C., Memili, E., Chrisman, J. J., Kellermanns, F. W., & Chua, J. H. (2009). Family social capital, venture preparedness, and start-up decisions: A study of Hispanic entrepreneurs in New England. Family Business Review, 22(3), 279–292. https://doi.org/10.1177/0894486509332327
Chen, K. K., & Chen, V. T. (2021). “What if” and “if only” futures beyond conventional capitalism and bureaucracy: Imagining collectivist and democratic possibilities for organizing. Research in the Sociology of Organizations, 72, 1–28. https://doi.org/10.1108/S0733-558X20210000072001
Chrisman, J. J., Chua, J. H., De Massis, A., Minola, T., & Vismara, S. (2016). Management processes and strategy execution in family firms: From “what” to “how.” Small Business Economics, 47(3), 719–734. https://doi.org/10.1007/s11187-016-9772-3
Craig, J., & Dibrell, C. (2016). 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
Creswell, J. W. (2007). Qualitative inquiry and research design: Choosing among five approaches (2nd ed.). Sage Publications, Inc.
Cunningham, J. A., Menter, M., & Young, C. (2017). A review of qualitative case methods trends and themes used in technology transfer research. Journal of Technology Transfer, 42(4), 923–956. https://doi.org/10.1007/s10961-016-9491-6
Datu, J. A. D., Yuen, M., & Chen, G. (2018). Exploring determination for long-term goals in a collectivist context: A qualitative study. Current Psychology, 37(1), 263–271. https://doi.org/10.1007/s12144-016-9509-0
Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18(3), 301–331. https://doi.org/10.1016/S0883-9026(02)00097-6
de Groot, M., Mihalache, O., & Elfring, T. (2022). Enhancing enterprise family social capital through family governance: An identity perspective. Family Business Review, 35(3), 306–328. https://doi.org/10.1177/08944865221105334
De Massis, A., Di Minin, A., & Frattini, F. (2015a). Family-driven innovation: Resolving the paradox in family firms. California Management Review, 58(1). https://doi.org/10.1525/cmr.2015.58.1.5
De Massis, A., Frattini, F., Pizzurno, E., & Cassia, L. (2015b). Product innovation in family versus nonfamily firms: An exploratory analysis. Journal of Small Business Management, 53(1), 1–36. https://doi.org/10.1111/jsbm.12068
De Massis, A., Frattini, F., Kotlar, J., Petruzzelli, A. M., & Wright, M. (2016). Innovation through tradition: Lessons from innovative family businesses and directions for future research. Academy of Management Perspectives, 30(1), 93–116. https://doi.org/10.5465/amp.2015.0017
de Mooij, M., & Hofstede, G. (2010). The hofstede model: Applications to global branding and advertising strategy and research. International Journal of Advertising, 29(1), 85–110. https://doi.org/10.2501/S026504870920104X
“Digital transformation of family businesses”. (2022). Strategic Direction, 38(8), 27–29. https://doi.org/10.1108/SD-07-2022-0064
Dyer, W. G. (2006). Examining the “family effect” on firm performance. Family Business Review, 19(4), 253–273. https://doi.org/10.1111/j.1741-6248.2006.00074.x
Easton, G. (2010). Critical realism in case study research. Industrial Marketing Management, 39(1), 118–128. https://doi.org/10.1016/j.indmarman.2008.06.004
El Fasiki, H. (2013). The family business in collectivist societies: Traits and implications. Tharawat Magazine, 18, 20–23. https://mpra.ub.uni-muenchen.de/48819/
Elliott, N., & Higgins, A. (2012). Surviving grounded theory research method in an academic world: Proposal writing and theoretical frameworks. Grounded Theory Review, 11(2).
Espig, A., Igor, M., Zimmermann, C., & Carvalho, L. C. de. (2021). National culture and innovation: A multidimensional analysis. Innovation & Management Review, 19(4).
Fietz, B., Hillmann, J., & Guenther, E. (2021). Cultural effects on organizational resilience: Evidence from the NAFTA Region. Schmalenbach Journal of Business Research, 73(1), 5–46. https://doi.org/10.1007/s41471-021-00106-8
Gedajlovic, E., Honig, B., Moore, C. B., Payne, G. T., & Wright, M. (2013). Social capital and entrepreneurship: A schema and research agenda. Entrepreneurship: Theory and Practice, 37(3). https://doi.org/10.1111/etap.12042
Glaser, B., & Strauss, A. (2007). The discovery of grounded theory: Strategies for qualitative research. Aldine. https://doi.org/10.2307/588533
González, A. C., Pérez-Uribe, M. Á., González, A. C., & Pérez-Uribe, M. Á. (2021). Family business resilience under the COVID-19: A comparative study in the furniture industry in the United States of America and Colombia. Estudios Gerenciales, 37(158), 138–152. https://doi.org/10.18046/j.estger.2021.158.4423
Gudmunson, C. G., & Danes, S. M. (2013). Family social capital in family businesses: A stocks and flows investigation. Family Relations, 62(3), 399–414. https://doi.org/10.1111/fare.12017
Gupta, V., & Kirwan, P. (2013). Role of in-group collectivism in the longevity of family firms. Global Business Perspectives, 1(4), 433–451. https://doi.org/10.1007/s40196-013-0022-7
Heider, A. K., Clauss, T., Hülsbeck, M., Gerken, M., & Rüsen, T. A. (2022). Blood is thicker than water: The role of family willingness and family ability in achieving holistic digitalisation in family businesses. International Journal of Innovation Management, 26(03). https://doi.org/10.1142/S1363919622400096
Henry, C., & Foss, L. (2015). Case sensitive? A review of the literature on the use of case method in entrepreneurship research. International Journal of Entrepreneurial Behaviour and Research, 21(3). https://doi.org/10.1108/IJEBR-03-2014-0054
Hofstede, G. (1980). Culture’s consequences: International differences in work related values. Sage Publishing Inc.
Jaskiewicz, P., Combs, J. G., Shanine, K. K., & Kacmar, K. M. (2017). Introducing the family: A review of family science with implications for management research. Academy of Management Annals, 11(1), 309–341. https://doi.org/10.5465/annals.2014.0053
Jaskiewicz, P., & Dyer, W. G. (2017). Addressing the elephant in the room: Disentangling family heterogeneity to advance family business research. Family Business Review, 30(2), 111–118. https://doi.org/10.1177/0894486517700469
Kaasa, A. (2016). Culture as a possible factor of innovation: Evidence from the European Union and neighboring countries. In Re-thinking diversity (pp. 83–107). Springer. https://doi.org/10.1007/978-3-658-11502-9_5
Kaasa, A., & Vadi, M. (2010). How does culture contribute to innovation? Evidence from European countries. Economics of Innovation and New Technology, 19(7), 583–604. https://doi.org/10.1080/10438590902987222
Kerr, S. E. (2018). Social capital as a determinant of resilience: Implications for adaptation policy. In Resilience: The science of adaptation to climate change (pp. 267–275). Elsevier. https://doi.org/10.1016/B978-0-12-811891-7.00022-0
Khan, R., & Cox, P. (2017). Country culture and national innovation. Archives of Business Research, 5(2). https://doi.org/10.14738/abr.52.2768
König, A., Kammerlander, N., & Enders, A. (2013). The family innovator’s dilemma: How family influence affects the adoption of discontinuous technologies by incumbent firms. Academy of Management Review, 38(3). https://doi.org/10.5465/amr.2011.0162
Kotlar, J., & De Massis, A. (2013). Goal setting in family firms: Goal diversity, social interactions, and collective commitment to family-centered goals. Entrepreneurship Theory and Practice, 37(6), 1263–1288. https://doi.org/10.1111/etap.12065
Kotlar, J., de Massis, A., Fang, H., & Frattini, F. (2014). Strategic reference points in family firms. Small Business Economics, 43(3), 597–619. https://doi.org/10.1007/s11187-014-9556-6
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 Behaviour and Research, 26(5), 1067–1092. https://doi.org/10.1108/IJEBR-04-2020-0214
Kraus, S., Clauss, T., & Kallmuenzer, A. (2023). Research handbook on entrepreneurship and innovation in family firms. Edward Elgar Publishing. https://doi.org/10.4337/9781800889248
Light, I., & Dana, L. P. (2013). Boundaries of social capital in entrepreneurship. Entrepreneurship: Theory and Practice, 37(3). https://doi.org/10.1111/etap.12016
Lubatkin, M. H., Ling, Y., & Dino, R. N., M. H. (2005). The effects of parental altruism on the governance of family-managed firms. Journal of Organizational Behavior, 26, 313–330. https://doi.org/10.1002/job.307
Mamontov, V. D., Kozhevnikova, T. M., & Radyukova, Y. Y. (2014). Collectivism and individualism in modern Russia. Asian Social Science, 10(23). https://doi.org/10.5539/ass.v10n23p199
Mangifera, L. (2015). Analisis rantai nilai (value chain) pada produk batik tulis di Surakarta. BENEFIT Jurnal Manajemen Dan Bisnis, 19(1), 24–33.
Markus, H. R., & Kitayama, S. (1991). Culture and the self: Implications for cognition, emotion, and motivation. Psychological Review, 98(2), 224–253. https://doi.org/10.1037/0033-295X.98.2.224
Marques, J. C. (2017). Industry business associations: Self-interested or socially conscious? Journal of Business Ethics, 143(4), 733–751. https://doi.org/10.1007/s10551-016-3077-y
Mercan, B., & Göktaş, D. (2011). Components of innovation ecosystems: A cross-country study. International Research Journal of Finance and Economics, 76.
Miller, D., Breton-Miller, I. Le, Lester, R. H., Cannella Jr., A. A. (2007). Are family firms really superior performers? Journal of Corporate Finance, 13(5), 829–858. https://doi.org/10.1016/j.jcorpfin.2007.03.004
Mithani, M. A. (2020). Adaptation in the face of the new normal. Academy of Management Perspectives, 34(4). https://doi.org/10.5465/amp.2019.0054
Mutiara, M. R., Primiana, I., Joeliaty, J., & Cahyandito, M. F. (2019). Exploring cultural orientation on the entrepreneur competencies in the globalization era. Business: Theory and Practice, 20, 379–390. https://doi.org/10.3846/btp.2019.36
Nahapiet, J., & Ghoshal, S. (2009). Social capital, intellectual capital, and the organizational advantage. The Academy of Management Review, 23(2), 242–266. https://doi.org/10.2307/259373
Nieto, M. J., Santamaria, L., & Fernandez, Z. (2015). Understanding the innovation behavior of family firms. Journal of Small Business Management, 53(2), 382–399. https://doi.org/10.1111/jsbm.12075
Nugroho, S. (2010). Karakteristik usaha kecil di Indonesia: Perencanaan Pemasaran Usaha Kecil Rumahan. BENEFIT: Jurnal Manajemen Dan Bisnis, 14(1), 22–27. http://publikasiilmiah.ums.ac.id/handle/11617/1816
Pereira, C., & Zwerg-Villegas, A. M. (2015). Business ethics and self-initiated expatriates. In International management and intercultural communication (pp. 149–164). Springer. https://doi.org/10.1007/978-1-137-47991-4_9
Plana-Farran, M., & Gallizo, J. L. (2021). The survival of family farms: Socioemotional Wealth (SEW) and factors affecting intention to continue the business. Agriculture, 11(6), Article 520. https://doi.org/10.3390/agriculture11060520
Purnomo, B. R., Adiguna, R., Widodo, W., Suyatna, H., & Nusantoro, B. P. (2021). Entrepreneurial resilience during the COVID-19 pandemic: Navigating survival, continuity and growth. Journal of Entrepreneurship in Emerging Economies, 13(4), 497–524. https://doi.org/10.1108/JEEE-07-2020-0270
Rodner, V. L. (2019). My love affair with grounded theory: Making the passion work in the “Real” world. Sociological Focus, 52(2), 156–169. https://doi.org/10.1080/00380237.2018.1544517
Rondi, E., De Massis, A., & Kotlar, J. (2019). Unlocking innovation potential: A typology of family business innovation postures and the critical role of the family system. Journal of Family Business Strategy, 10(4), Article 100236. https://doi.org/10.1016/j.jfbs.2017.12.001
Samara, G. (2021). Family businesses in the Arab Middle East: What do we know and where should we go? Journal of Family Business Strategy, 12(3). https://doi.org/10.1016/j.jfbs.2020.100359
Savitri, E. (2018). Relationship between family ownership, agency costs towards financial performance and business strategy as mediation. Business: Theory and Practice, 19, 49–58. https://doi.org/10.3846/btp.2018.06
Schramm, W. (1971). Notes on case studies of instructional media projects (Working Paper for the Academy for Educational Development). ERIC.
Schulze, M., & German, G. (2022). Family business resilience: The importance of owner-manager’s relational resilience in crisis response strategies. European Journal of Family Business, 12(2), 100–123. https://doi.org/10.24310/ejfbejfb.v12i2.14657
Schulze, W. S., Lubatkin, M. H., & Dino, R. N. (2002). Altruism, agency, and the competitiveness of family firms. Managerial and Decision Economics, 23(4/5), 247–259. https://doi.org/10.1002/mde.1064
Setyawan, A., Mudhofar, F., Arum, Y., & Susila, I. (2022). Strategic partnership between SME retailers and modern suppliers in Indonesia: A relationship marketing approach. Organizations and Markets in Emerging Economies, 13(2), 317–335. https://doi.org/10.15388/omee.2022.13.82
Sirmon, D. G., & Hitt, M. A. (2003). Managing resources: Linking unique resources, 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
Soares, A. M., Farhangmehr, M., & Shoham, A. (2007). Hofstede’s dimensions of culture in international marketing studies. Journal of Business Research, 60(3), 277–284. https://doi.org/10.1016/j.jbusres.2006.10.018
Søndergaard, M. (1994). Research note: Hofstede’s consequences: A study of reviews, citations and replications. Organization Studies, 15(3), 447–456. https://doi.org/10.1177/017084069401500307
Stake, R. (1995). The art of case study research. Sage.
Steenkamp, J. B. E. M. (2001). The role of national culture in international marketing research. International Marketing Review, 18(1), 30–44. https://doi.org/10.1108/02651330110381970
Suddaby, R. (2006). From the editors: What grounded theory is not. Academy of Management Journal, 49(4). https://doi.org/10.5465/amj.2006.22083020
Susila, I. (2016). Pendekatan kualitatif untuk riset pemasaran dan pengukuran kinerja bisnis. Benefit: Jurnal Manajemen Dan Bisnis, 1(1), 12–23. https://doi.org/10.36226/jrmb.v1i1.7
Sutrisno, B. (2020, May 28). 50 days of Indonesia’s partial lockdown: Is it enough for the ‘new normal’? The Jakarta Post. https://www.thejakartapost.com/news/2020/05/28/50-days-of-indonesias-partial-lockdown-is-it-enough-for-the-new-normal.html
Tse, D. K., Lee, K., Vertinsky, I., & Wehrung, D. A. (1988). Does culture matter? A cross-cultural study of executives’ choice, decisiveness, and risk adjustment in international marketing. Journal of Marketing, 52(4), 81–95. https://doi.org/10.1177/002224298805200408
Verstraete, T., & Jouison, E. (2019). Anthropological interpretation of the business model: Myth, institutionalization and sharing. Journal of Business Models, 7(4), 59–65.
Villena, V. H., Revilla, E., & Choi, T. Y. (2011). The dark side of buyer–supplier relationships: A social capital perspective. Journal of Operations Management, 29(6), 561–576. https://doi.org/10.1016/j.jom.2010.09.001
Ward, J. L. (1997). Growing the family business: Special challenges and best practices. Family Business Review, 10(4). https://doi.org/10.1111/j.1741-6248.1997.00323.x
Woodside, A. G., & Wilson, E. J. (2003). Case study research methods for theory building. Journal of Business and Industrial Marketing, 18(6–7). https://doi.org/10.1108/08858620310492374
Yin, R. (2018). Case study research and applications: Design and methods (6th ed). SAGE Publications.
Zahra, S. A., Hayton, J. C., & Salvato, C. (2004). Entrepreneurship in family vs. non-family firms: A resource-based analysis of the effect of organizational culture. Entrepreneurship Theory and Practice, 28(4), 363–381. https://doi.org/10.1111/j.1540-6520.2004.00051.x