Family business resilience under the COVID-19: A comparative study in the furniture industry in the United States of America and Colombia
DOI:
https://doi.org/10.18046/j.estger.2021.158.4423Keywords:
family business, resilience, resource-based view, COVID-19Abstract
COVID-19 has impacted the world and has forced organizations to adapt to the “new normal”, and family businesses have not been exempt. In this study, we answer two research questions; how prepared are family businesses to face shocks like the pandemic? and, do contexts matter in that response? Using the Resource-Based View of the firm, in this qualitative exploratory study we analyze the resources and capabilities deployed by two business families owning three family businesses in the office furniture industry in the countries of Colombia and the USA. Our findings indicate that indeed family businesses are resilient, but the resources and capabilities deployed and their uses are different according to the context, suggesting a contingent familiness during a crisis.
Downloads
References
Acquaah, M., Amoako-Gyampah, K., & Jayaram, J. (2011). Resilience in family and nonfamily firms: an examination of the relationships between manufacturing strategy, competitive strategy and firm performance. International Journal of Production Research, 49(18), 5527-5544. https://doi.org/10.1080/00207543.2011.563834
Altintas, G., & Royer, I. (2009). Renforcement de la résilience par un apprentissage post-crise : une étude longitudinale sur deux périodes de turbulence. Management, 4(2), 266-293. https://doi.org/10.3917/mana.124.0266
Banco de la República. (2020). Línea de tiempo medidas Banrep COVID-19 | Banco de la República (banco central de Colombia). Retrieved October 16, 2020, from: https://www.banrep.gov.co/es/medidas-junta-directiva-covid19
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
Brandon-Jones, E., Squire, B., Autry, C., & Petersen, K. J. (2014). A Contingent Resource-Based Perspective of Supply Chain Resilience and Robustness. Journal of Supply Chain Management, 50(3), 55-73. https://doi.org/10.1111/jscm.12050
Brewton, K. E., Danes, S. M., Stafford, K., & Haynes, G. W. (2010). Determinants of rural and urban family firm resilience. Journal of Family Business Strategy, 1(3), 155-166. https://doi.org/10.1016/j.jfbs.2010.08.003
Bridge Michigan. (2020a). Michigan economy is stronger than expected amid pandemic. Thank the stimulus. Bridge Michigan. Retrieved October 16, 2020, from: https://www.bridgemi.com/business-watch/michigan-economy-stronger-expected-amid-pandemic-thank-stimulus
Bridge Michigan. (2020b). Why did coronavirus spread so fast in Michigan compared to neighbors? | Bridge Magazine. Retrieved October 16, 2020, from: https://www.bridgemi.com/michigan-health-watch/why-did-coronavirus-spread-so-fast-michigan-compared-neighbors
Brookings. (2020). Ten Facts about COVID-19 and the U.S. Economy. Retrieved October 16, 2020, from: https://www.brookings.edu/research/ten-facts-about-covid-19-and-the-u-s-economy/
Brush, T. H., & Artz, K. W. (1999). Toward a contingent resource-based theory: The impact of information asymmetry on the value of capabilities in veterinary medicine. Strategic Management Journal, 20(3), 223-250. https://doi.org/10.1002/(SICI)1097-0266(199903)20:3<223::AID-SMJ14>3.0.CO;2-M
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
CNN. (2020). US economic recovery after the coronavirus pandemic and recession - CNN Business. Retrieved October 16, 2020, from: https://edition.cnn.com/business/us-economic-recovery-coronavirus
Creswell, J. W., & Poth, C. N. (2016). Qualitative inquiry and research design: Choosing among five approaches. Thousand Oaks: Sage Publications.
Danes, S. M. (2006). Tensions Within Family Business-Owning Couples Over Time. Stress, Trauma, and Crisis, 9(3-4), 227-246. https://doi.org/10.1080/15434610600854244
Danes, S. M., Haberman, H. R., & McTavish, D. (2005). Gendered Discourse about Family Business. Family Relations, 54(1), 116-130. https://doi.org/10.1111/j.0197-6664.2005.00010.x
Danes, S. M., Lee, J., Amarapurkar, S., Stafford, K., Haynes, G., & Brewton, K. E. (2009). Determinants of family business resilience after a natural disaster by gender of business owner. Journal of Developmental Entrepreneurship, 14(4), 333-354. https://doi.org/10.1142/S1084946709001351
Danes, S. M., Loy, J. T.-C., & Stafford, K. (2008). Business Planning Practices of Family-Owned Firms within a Quality Framework. Journal of Small Business Management, 46(3), 395-421. https://doi.org/10.1111/j.1540-627X.2008.00250.x
Danes, S. M., Rueter, M. A., Kwon, H.-K., & Doherty, W. (2002). Family FIRO Model: An Application to Family Business. Family Business Review, 15(1), 31-43. https://doi.org/10.1111/j.1741-6248.2002.00031.x
De Massis, A., & Kammerlander, N. (2020). Handbook of Qualitative Research Methods for Family Business. Cheltenham: Edward Elgar Publishing Limited.
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
Donthu, N., & Gustafsson, A. (2020, September 1). Effects of COVID-19 on business and research. Journal of Business Research, 117, 284-289. https://doi.org/10.1016/j.jbusres.2020.06.008
Duran, P., Kammerlander, N., Van Essen, M., & Zellweger, T. (2016). Doing more with less: Innovation input and output in family firms. Academy of Management Journal, 59(4), 1224-1264. https://doi.org/10.5465/amj.2014.0424
El Nuevo Siglo. (2020). Los efectos del Covid-19 en la economía de Colombia | El Nuevo Siglo. Retrieved October 16, 2020, from: https://www.elnuevosiglo.com.co/articulos/06-2020-los-efectos-del-covid-19-en-la-economia-de-colombia
Gómez-Mejía, L. R., Haynes, K. T., Núñez-Nickel, M., Jacobson, K. J. L., & 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. https://doi.org/10.2189/asqu.52.1.106
Grant, R. M. (1991). The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation. California Management Review, 33(3), 114-135. https://doi.org/10.2307/41166664
Habbershon, T. G., & Williams, M. L. (1999). A Resource-Based Framework for Assessing the Strategic Advantages of Family Firms. Family Business Review, 12(1), 1-25. https://doi.org/10.1111/j.1741-6248.1999.00001.x
Habbershon, T. G., Williams, M., & MacMillan, I. C. (2003). A unified systems perspective of family firm performance. Journal of Business Venturing, 18(4), 451-465. https://doi.org/10.1016/S0883-9026(03)00053-3
Landau, J. (2007). Enhancing Resilience: Families and Communities as Agents for Change. Family Process, 46(3), 351-365. https://doi.org/10.1111/j.1545-5300.2007.00216.x
Lengnick-Hall, C. A., & Beck, T. E. (2009). Resilience capacity and strategic agility: Prerequisites for thriving in a dynamic environment. In Resilience capacity and strategic agility: Prerequisites for thriving in a dynamic environment (pp. 39-69). San Antonio, TX: UTSA: College of Business.
Memili, E., & Dibrell, C. (2019). A Brief History and Look to the Future of Family Business Heterogeneity. In E. Memili & Dibrell (Eds.), The Palgrave handbook of Heterogeneity of Family Firms (Palgrave M, pp. 1-15). Cham: Palgrave McMillan.
Michigan State. (2020). Coronavirus - Michigan Data. Retrieved October 16, 2020, from: https://www.michigan.gov/coronavirus/0,9753,7-406-98163_98173---,00.html
Moen, P., & Wethington, E. (1992). The Concept of Family Adaptive Strategies. Annual Review of Sociology, 18(1), 233-251. https://doi.org/10.1146/annurev.so.18.080192.001313
Morse, J. M., & Richards, L. (2002). Readme first for a user’s guide to qualitative methods. Thousand Oaks: Sage publications.
Mzid, I., Khachlouf, N., & Soparnot, R. (2019). How does family capital influence the resilience of family firms? Journal of International Entrepreneurship, 17(2), 249-277. https://doi.org/10.1007/s10843-018-0226-7
Nordqvist, M., Hall, A., & Melin, L. (2009). Qualitative research on family businesses: The relevance and usefulness of the interpretive approach. Journal of Management and Organization, 15(3), 294-308. https://doi.org/10.5172/jmo.2009.15.3.294
NPR. (2020). GDP Drops At 32.9% Rate, The Worst U.S. Contraction Ever : Coronavirus Live Updates : NPR. Retrieved October 16, 2020, from: https://www.npr.org/sections/coronavirus-live-updates/2020/07/30/896714437/3-months-of-hell-u-s-economys-worst-quarter-ever
NYtimes. (2020). Jobs Report Shows Further Slowdown in U.S. Economic Recovery - The New York Times. Retrieved October 16, 2020, from: https://www.nytimes.com/2020/10/02/business/economy/september-jobs-report.html
Olson, P. D., Zuiker, V. S., Danes, S. M., Stafford, K., Heck, R. K. Z., & Duncan, K. A. (2003). The impact of the family and the business on family business sustainability. Journal of Business Venturing, 18(5), 639-666. https://doi.org/10.1016/S0883-9026(03)00014-4
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
Patterson, J. M. (2002). Understanding family resilience. Journal of Clinical Psychology, 58, 233-246. https://doi.org/10.1002/jclp.10019
Paul, J. J., Winter, M., Miller, N. J., & Fitzgerald, M. A. (2003). Cross- Institutional Norms for Timing and Sequencing and the Use of Adjustment Strategies in Families Affiliated with Family-Owned Businesses. Marriage and Family Review, 35, 167-191. https://doi.org/10.1300/J002v35n01_10
Penrose, E. (1959). The Theory of the Growth of the Firm. Londres: Oxford university press.
Presidencia de la República. (2020). Gobierno Nacional le anuncia al país las primeras medidas económicas y sociales, en el marco de la declaratoria del Estado de Emergencia. Retrieved October 16, 2020, from: https://id.presidencia.gov.co/Paginas/prensa/2020/Gobierno-Nacional-medidas-economicas-sociales-Estado-Emergencia-200318.aspx
Rau, S. (2014). Resource-Base View of Family Firms. In Sage (Ed.), The SAGE Handbook of Family Business (pp. 321-338). https://doi.org/https://doi.org/10.4135/9781446247556.n16
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
Sirmon, D. G., Hitt, M. A., Ireland, R. D., & Gilbert, B. A. (2011). Resource Orchestration to Create Competitive Advantage. Journal of Management, 37(5), 1390-1412. https://doi.org/10.1177/0149206310385695
Stafford, K., Bhargava, V., Danes, S. M., Haynes, G., & Brewton, K. E. (2010). Factors Associated with Long-Term Survival of Family Businesses: Duration Analysis. Journal of Family and Economic Issues, 31(4), 442-457. https://doi.org/10.1007/s10834-010-9232-1
Stallings, R. A. (2005). Disaster and the theory of social order. In In What is a Disaster? (pp. 145-164). Londres: Routledge.
Statista. (2020). Furniture Report 2020 - Office Furniture | Statista. Retrieved October 16, 2020, from: https://www.statista.com/study/48887/furniture-report-office-furniture/
Steier, L. (2005). Executive succession in entrepreneurial business. In I. M. Hitt & D. Ireland (Eds.), The Blackwell encyclopedic dictionary of entrepreneurship (2nd ed., pp. 125-128). Oxford: Blackwell.
U.S. Small Business Administration. (2020). Paycheck Protection Program (PPP) Report. Retrieved October 16, 2020, from: https://www.sba.gov/sites/default/files/2020-07/PPPResults-SundayFINAL.pdf
US Department of Treasury. (2020). The CARES Act Provides Assistance to Small Businesses. Retrieved October 16, 2020, from: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171-180. https://doi.org/10.1002/smj.4250050207
Zakaria, F. (2020). Ten lessons for a post-pandemic world. New York: W.W. Norton & Company.
Zellweger, T. (2017). Managing the Family Business: Theory and Practice (Vol. 1). Cheltemham: Edward Elgar.
Published
Issue
Section
License
Articles are the sole responsibility of their authors, and will not compromise Icesi’s University principles or policies nor those of the Editorial Board of the journal Estudios Gerenciales. Authors authorize and accept the transfer of all rights to the journal, both for its print and electronic publication. After an article is published, it may be reproduced without previous permission of the author or the journal but the author(s), year, title, volume, number and range of pages of the publication must be mentioned. In addition, Estudios Gerenciales must be mentioned as the source (please, refrain from using Revista Estudios Gerenciales).
How to Cite
