Family businesses navigating the COVID-19 pandemic through a gender perspective: the role of external and internal factors in stimulating dynamic capability development

Abstract

PurposeThe paper aims to decipher, through intertwined external and internal perspectives, how female and male owners of family businesses (FB) that have been affected by the pandemic develop new capabilities to respond to the market's crisis-related needs. Specifically, this study seeks to decipher the role of external support, mediated by the owner's psychological capital (i.e. internal perspective) and moderated by gender, on the development of capabilities related to the market's changing needs, drawing on the dynamic capabilities conceptualization.Design/methodology/approachA sample of responses from 261 Canadian FB owners was generated during the pandemic, and online questionnaires were distributed.FindingsRegression analyses and Hayes' PROCESS tool revealed that while external support directly invigorates capability development, external support is also mediated by psychological capital and moderated by gender, so that female owners were found less likely to use external support for capability development than men. These findings are explained by women's traditional responsibility in FB of protecting the family from external circumstances. Nevertheless, both women and men orchestrated external support, due to the higher psychological capital of FB, to develop capabilities that respond to pandemic-related market needs.Originality/valueThis study explores and demonstrates the unique navigation of FB owners during crises, and the role of the owner's gender in pursuing capability development. The study's value is in interconnecting external and internal perspectives while probing FB during crises. Implications for the ecosystem's conduct toward FB are discussed.

Timing the transition: gender diversity’s role in family IPOs

“…This phenomenon is further influenced by the aversion of female directors towards risk (Yarram and Adapa, 2022), especially in family firms. Their cautious approach, driven by a tendency to prioritize family interests over business objectives (Kariv et al. , 2023), can introduce complexities in the decision-making process, thus contributing to delays in critical strategic moves like the IPO.…”

“…This phenomenon is further influenced by the aversion of female directors towards risk (Yarram and Adapa, 2022), especially in family firms. Their cautious approach, driven by a tendency to prioritize family interests over business objectives (Kariv et al, 2023), can introduce complexities in the decision-making process, thus contributing to delays in critical strategic moves like the IPO. This emphasis on the need to balance family and business considerations echoes the intricacies inherent in managing family firms, where the interplay between family dynamics and business strategies often adds layers of complexity to decision-making processes (Kellermanns and Eddleston, 2004).…”

“…Indeed, as reported by Frii et al (2023), gender matters in the decision to go public: female CEOs, being more risk-averse than their male counterparts, are likely to decrease the probability of companies going public. In family firms, such behaviors may be even more pronounced, as the traditional responsibility assigned to women is often to protect the family from external circumstances and SEW damages (Kariv et al, 2023).…”