How can family businesses survive disruptive industry changes? Insights from the traditional mail order industry

The present study investigates how family firms respond to disruptive industry changes. We aim to investigate which factors prevent or support family firms’ adoption of disruptive innovations in their industry and which mechanisms lead to more or less successful coping with disruptive change. Our analysis is based on 24 qualitative interviews with top executives and on secondary data from an industry in which disruptive innovations dramatically changed the way business was generated. The industry in question is the mail order industry, which, in its early days, disrupted the retail business. When the Internet and, with it, ecommerce started to disrupt the industry in the late 1990s, the industry was characterized by a high proportion of family firms and a low level of innovativeness. While incumbent firms had been very successful for decades, most of them were confronted with serious turbulence when new entrants started changing the face of the industry. Our findings show that different factors impact reactions to disruptive industry change in two different phases, namely, opportunity recognition and opportunity implementation. While some of the influencing factors are determined by industry factors, family influence may function for better or worse for incumbent firms. Specifically, we find that in firms with a family disruptor, a family member in a powerful position who drives the adoption of the new technology, hindrances can be overcome and firms tend to show more successful strategies when reacting to the disruptive industry change

SMES’ reluctance to embrace corporate sustainability: The effect of stakeholder pressure on self-determination and the role of social proximity

Small and medium-sized enterprises (SMEs) are said to engage significantly less with corporate sustainability (CS) than their larger peers, because they are more reluctant to voluntarily engage in CS beyond regulatory thresholds. However, the mechanisms for changing the reluctance of SMEs with regard to CS are poorly understood. By drawing on self-determination and stakeholder theory from a social proximity perspective, this paper argues that stakeholders play a key role in influencing the controlled CS motivation of SMEs, and that SMEs will consider the claims of ‘proximate’ stakeholders as being more salient than ‘distant’ regulatory pressure, with the latter even potentially exercising a negative effect on SMEs' controlled CS motivation. The hypotheses are empirically tested using survey-based data from a sample of 344 privately-held SMEs operating in Germany and Austria. Results of the structural equation model confirm that ‘proximate’ employee and community pressure reduces controlled CS motivation and ultimately increases overall CS performance, whilst ‘distant’ regulatory pressure has precisely the opposite effect, ultimately reducing the CS performance of SMEs. These findings help to clarify that the close attachment of SMEs to their employees, and their deep embeddedness in the local community might be important catalysts with regard to CS improvements of SMEs, whilst regulatory pressure reduces their willingness to engage in CS, since this is often perceived as an unfair, demotivating, external imperative, which compromises their self-determination. Lastly, theoretical and managerial implications are provided

When social accounts work: evidence from ultimatum games

This paper examines the mitigating effect of social accounts on retaliatory behavior in a miniultimatum game setting. Results from games with 108 German high school students support the hypothesis that an ex ante informational and sensitive message can decrease an individuals’ negative perception of an unfair offer and increase the acceptance of the outcome. Furthermore, the moderating effect of gender on retaliatory behavior is investigated. We show that an informational and sensitive message makes more of a difference for women in accepting unfair distributions than it does for men

Synthesizing Instruction Selection

Instruction selection is the part in a compiler that transforms IR code into machine code. Instruction selectors build on a library of hundreds if not thousands of rules. Creating and maintaining these rules is a tedious and error-prone manual process. In this paper, we present a fully automatic approach to create provably correct rule libraries from formal specifications of the instruction set architecture and the compiler IR using template-based counter-example guided synthesis (CEGIS). Thereby, we overcome several shortcomings of an existing SMT-based CEGIS approach, which was not applicable to our setting in the first place.We propose a novel way of handling memory operations and show how the search space can be iteratively explored to synthesize rules that are relevant for instruction selection. Our approach synthesized a large part of the integer arithmetic rules for the x86 architecture within a few days where existing techniques could not deliver a substantial rule library within weeks. With respect to the runtime of the compiled programs, we show that the synthesized rules are close to a manually-tuned instruction selector

The Role of Affect in the Selection of Nonfamily Top Management Team Members in Family Businesses.

Utilizing a qualitative research design based on 53 interviews with 19 Swiss family businesses, supplemented by 14 expert interviews, this study demonstrates that different family firm-specific elements of the process of selecting top management team (TMT) members alter affect infusion in family firms. These are the informal selection context, the involvement of informal advisors, and relationship-related evaluation criteria. The study moreover shows that the context-specific attitude (openness, defensiveness, readiness to delegate) of the family business decision-maker regulates affect infusion. Lastly, the study demonstrates that sabotage in the selection process can occur in high-affect infusion scenarios. Contributions and implications for future research are discussed