Improving the likelihood of SME survival during financial and economic crises: The importance of TMTs and family ownership for ambidexterity

Abstract

In the context of an economic and financial crisis characterized by scarce munificence and high uncertainty, we examine the role of organizational ambidexterity in SMEs survival, and the TMT and ownership characteristics that influence ambidexterity. Our analysis of Spanish manufacturing SMEs in the context of an international economic crisis suggests that: (1) firm survival is associated with ambidexterity; (2) diversity in TMT tenure improves firm ambidexterity and (3) a negative effect exists between family ownership and ambidexterity, but (4) a positive effect exists between family ownership and survival. This study contributes to our understanding of the antecedents of SME ambidexterity by providing a theoretical model that combines the arguments of upper-echelons theory with those found in family-firm research offering an extended view of corporate elites in SMEs. Our research highlights and provides support to the superiority of ambidexterity for survival under external (crisis) and internal (SMEs) restrictions.

Ambidexterity, Alliances and Environmental Management System Adoption in Spanish Hotels

“…Size. Firm size has been shown to affect ambidexterity [14,39,107], as well as environmental proactivity (e.g., [9]). We therefore use firm size as a control variable.…”

Organizational Ambidexterity in Family-Managed Firms: The Role of Family Involvement in Top Management

“…While exploitation entails a focus on quality and efficiency, enabling firms to closely monitor and optimize their current business activities, exploration comprises a focus on new opportunities as well as future products, services, markets, and customers that allows firms to achieve long-term competitiveness (March, 1991). Research on family firm ambidexterity has highlighted the peculiarities of ambidexterity in such firms (Dolz et al, 2019; Hughes et al, 2018), stemming, for instance, from the specific resources and agency cost constellations in family firms, which influence their willingness and ability to engage in organizational ambidexterity (Veider & Matzler, 2016). In particular, this research has emphasized the effects of family involvement in top management (see Tretbar et al, 2016, for an overview) for achieving organizational ambidexterity, given the important role of top management decision making in explaining firms’ ambidextrous activities (Lubatkin et al, 2006).…”

Impact of Family Ownership on Organizational Performance With the Moderating Role of Active Versus Passive Control: A Case of Pakistan’s Private Sector

“…In the literature review of family & non-family ownership structure diverse writers have used diverse methods to calculate whether a particular firm is a family or non-family owned according to the requirements of their particular research. According to Dolz, C., Iborra, M., &Safón, V. (2018)the businesses which have family owned structures are those companies in which the different family members are working together in the same firm with some different designations, so such type of firm will be called family firm. The members of family are functioning in the firms will be very much loyal and sincere with the firm always they save the interest of the firms as compared to other types of shareholder of the firm.…”

“…of minor and average sized companies are family companies, literature displays these companies are speedily developing and very popular companies. Some studies report that family businesses have the similar nature interests and face similar nature problem and hardship in all over the world Dolz, C., Iborra, M., & Safón, V (2018).…”