Ready for a crisis? How supervisory boards affect the formalized crisis procedures of small and medium-sized family firms in Germany

Faghfouri, Pedram; Kraiczy, Nils Daniel; Hack, Andreas; Kellermanns, Franz W. (2015). Ready for a crisis? How supervisory boards affect the formalized crisis procedures of small and medium-sized family firms in Germany. Review of Managerial Science, 9(2), pp. 317-338. Springer 10.1007/s11846-014-0158-0

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Overcoming a crisis situation in which the socioemotional wealth (SEW) of a family is at risk can be threatened by a lack of formal crisis procedures, which can increase the probability of organizational decline. Thus, not being prepared for a crisis situation may be a critical factor in the long-term survival of family firms. From a corporate governance perspective, supervisory boards may achieve higher levels of crisis readiness. Applying the resourced-based view and SEW theory, we analyze the relationship between family ownership and formalized crisis procedures in 150 small and medium-sized German firms. Our results show that formalized crisis procedures decrease as family ownership increases. Including supervisory boards in our analysis, we find a significant moderating effect of supervisory boards on the relationship between family ownership and formalized crisis procedures. Specifically, our results suggest that family firms with supervisory boards show similar levels of formalized crisis procedures as non-family firms with supervisory boards. In contrast, family firms without supervisory boards exhibit lower levels of formalized crisis procedures compared with non-family firms without supervisory boards. We also discuss managerial implications, limitations, and future research.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Organization and Human Resource Management > Human Resource Management

UniBE Contributor:

Kraiczy, Nils Daniel and Hack, Andreas

Subjects:

600 Technology > 650 Management & public relations

ISSN:

1863-6683

Publisher:

Springer

Language:

English

Submitter:

Nils Daniel Kraiczy

Date Deposited:

26 May 2015 08:50

Last Modified:

26 May 2015 08:50

Publisher DOI:

10.1007/s11846-014-0158-0

BORIS DOI:

10.7892/boris.68820

URI:

https://boris.unibe.ch/id/eprint/68820

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