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Organisations’ Resources and External Shocks: Exploring Digital Innovation in Family Firms

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  • Jonas Soluk

Abstract

Few external shocks have had as severe an impact on organisations as COVID-19. To date, research on how management can respond to such a trigger event is lacking. Due to their economic relevance, family firms, which are typically resource-constrained and rely on idiosyncratic resource allocation behaviour, are of particular interest in this regard. Based on a multicase study of German family firms and building on longitudinal insights from 112 semistructured interviews, we develop a framework explaining how an external shock such as the COVID-19 pandemic can trigger a change in family firms’ motives. Linking adapted motives of family firms (i.e. survival, utilisation, and opportunism) with their resource allocation behaviour during the crisis (in terms of resource preservation, resource recombination, and social boundary resource development), we reveal how digital innovation (digital process innovation, digital product innovation, and digital business model innovation) originates as a result of a process of entrepreneurial action.

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  • Jonas Soluk, 2022. "Organisations’ Resources and External Shocks: Exploring Digital Innovation in Family Firms," Industry and Innovation, Taylor & Francis Journals, vol. 29(6), pages 792-824, July.
    • Handle: RePEc:taf:indinn:v:29:y:2022:i:6:p:792-824
    DOI: 10.1080/13662716.2022.2065971
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    Cited by:

    1. Soluk, Jonas & Decker-Lange, Carolin & Hack, Andreas, 2023. "Small steps for the big hit: A dynamic capabilities perspective on business networks and non-disruptive digital technologies in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    2. Bürgel, Tobias R. & Hiebl, Martin R.W. & Pielsticker, David I., 2023. "Digitalization and entrepreneurial firms' resilience to pandemic crises: Evidence from COVID-19 and the German Mittelstand," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    3. James, Steffan & Liu, Zheng & White, Gareth R.T. & Samuel, Anthony, 2023. "Introducing ethical theory to the triple helix model: Supererogatory acts in crisis innovation," Technovation, Elsevier, vol. 126(C).
    4. de Groote, Julia & Soluk, Jonas & Laue, Sarah-Larissa & Heck, Marius & Kammerlander, Nadine, 2023. "How can family-owned Mittelstand firms use their unique resources to master the digitalization age? The role of family historical, venture, and collaborative capital," Business Horizons, Elsevier, vol. 66(1), pages 133-152.
    5. Marti, Luisa & Puertas, Rosa, 2023. "Analysis of European competitiveness based on its innovative capacity and digitalization level," Technology in Society, Elsevier, vol. 72(C).
    6. Rafał Kusa & Marcin Suder & Belem Barbosa & Beata Glinka & Joanna Duda, 2022. "Entrepreneurial behaviors that shape performance in small family and non-family hotels during times of crisis," International Entrepreneurship and Management Journal, Springer, vol. 18(4), pages 1545-1575, December.

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