The role of entrepreneurial orientation in crisis management: evidence from family firms in enterprising communities

Abstract

Purpose The purpose of this paper is to explore and understand how family firms manage a crisis by applying a processual and longitudinal perspective. The objective is to find out how crisis management is approached by family firms in Sweden, Scotland and Germany, using entrepreneurial orientation (EO) as an analytical lens. Further, this paper investigates the role of the owning family in creating and solving a crisis in family firms. Design/methodology/approach This study follows a processual and longitudinal case study approach. Cases are drawn from Germany, Scotland and Sweden. Data collection is based on a combination of interviews with archival data such as annual reports and press clippings. Findings The results show that all studied firms had high levels of autonomy combined with high risk-taking. It is noteworthy, that these dimensions also help to overcome the crisis. Risk-taking and proactiveness can be useful for addressing the crisis. Under certain circumstances, even innovativeness can help to develop new offers. Autonomy is considered central in family firms and only extraordinary circumstances can be owning families make willing to compromise on it. The EO-dimensions are not all relevant at all times. Rather, family firms will emphasize the dimensions during the consecutive stages differently. Originality/value This study compares case companies from Germany, Scotland and Sweden and how EO contributes to their crisis management by taking a longitudinal and processual perspective. Its originality lies in the in-depth studies of companies from three countries.

Examining the effect of business model innovation on crisis management: the mediating role of entrepreneurial capability, resilience and business performance

“…To overcome the crisis is highly advisable to provide entrepreneurial responses and increase innovation in new product development, which induces a more rational planning approach (Korsgaard, Anderson, & Gaddefors, 2016; Boers & Henschel, 2021). Entrepreneurship plays a leading role in economic improvement during a crisis and can increase business flexibility and resilience (Dahles & Susilowati, 2015).…”

Entrepreneurship in family firms: an updated bibliometric overview

“…The literature here has focused on various aspects, including the strategies, benefits, barriers, and enablers of family firms' entrepreneurship (e.g. Aljuwaiber, 2020;Bacq & Lumpkin, 2014;Boers & Henschel, 2021;Feldmann et al, 2020;Peters & Kallmuenzer, 2018). However, the vast amount of studies across various niche areas makes it difficult to categorize the intellectual structure of family firms' entrepreneurship.…”

Family influences on entrepreneurial orientation in immigrant entrepreneurship

“…Prior research on EO has advocated more qualitative studies (e.g. Randerson, 2016;Wales, 2016) to compare EO between organizations and, more generally, to question the how and why of EO (Boers and Henschel, 2022;Wales et al, 2021). This is particularly important for EO in family firms (Zellweger and Sieger, 2012), let alone immigrant startups with high family engagement.…”

“…Prior research on EO has advocated more qualitative studies (e.g. Randerson, 2016; Wales, 2016) to compare EO between organizations and, more generally, to question the how and why of EO (Boers and Henschel, 2022; Wales et al. , 2021).…”