Digitalization and entrepreneurial firms' resilience to pandemic crises: Evidence from COVID-19 and the German Mittelstand

Resilience in Family Businesses: A Systematic Literature Review

“…Finally, an interesting paradox arises in relation to risk propensity, a component of strategic renewal capacity, which is tied to the concept of resilience. As previously mentioned, family businesses commonly exhibit heightened risk aversion, acting as a safeguard during periods of economic volatility (Bürgel et al, 2023). Moreover, they tend to adopt new disruptive technologies with caution, displaying a deliberate approach (König et al, 2013).…”

“…Many studies in our review measured resilience as an outcome (e.g., Acquaah et al, 2011; Bürgel et al, 2023) and operationalized it as financial performance (typically compared to non-family businesses) (e.g., Brunelli et al, 2023; Minichilli et al, 2016). Only a few studies looked at other resilience outcomes, such as innovation, survival, and longevity (e.g., Crespo et al, 2023; Randolph, Memili, et al, 2022; Stafford et al, 2010, 2013).…”

“…While this risk aversion may limit growth during economic upturns and is dangerous in case of ultimately successful disruptions, it acts as a protective measure during downturns, generally enhancing family businesses’ resilience (Calabrò et al, 2021; Le Breton-Miller & Miller, 2022). Their cautious approach to risk management can help family businesses weather turbulent economic times more effectively (Bürgel et al, 2023). Family-centered non-economic goals encourage patient capital and long-term investments, safeguarding the family’s investment from transient turbulences (Campopiano et al, 2019).…”

“…During times of economic downturns, this focus on SEW and family-centered non-economic goals might have a positive effect on a firm’s performance, signaling to investors and external stakeholders the intention to react quickly and take any necessary measures required to keep the business afloat (Eckey & Memmel, 2022). In addition, studies also show that family businesses, due to their long-term orientation, often exhibit higher levels of risk aversion (Bürgel et al, 2023). They are more inclined to stay in stable and traditional markets (de Groote et al, 2023) and resist early and resource-intense adoption of disruptive technologies (König et al, 2013).…”

Impact of digital capability on firm resilience: the moderating role of coopetition behavior

“…Some scholars have emphasized the importance of firm resilience in sustainable development and realized the irreplaceable role of digitalization for enterprises to withstand the crisis and recover quickly (Gayed and El Ebrashi, 2022; Ge et al ., 2022; Li et al ., 2022a, b, c; Sobaih et al ., 2021; Xia et al ., 2022a, b). However, these studies are still inadequate (Bürgel et al ., 2023; Bustinza et al ., 2019; Li et al ., 2022a, b, c). Existing literature only concentrates on a single dimension of digital technology (Guan et al ., 2022), organization networks and resources, availability on firm resilience (Xie et al ., 2022; Zhang et al ., 2022a, b, 2023), ignoring the roles of digital capabilities and knowledge search.…”