Crisis Management: Coping Mechanisms of Family Firms in Pakistan with the Ongoing Covid-19 Crisis

Abstract

Within a very short period of time, the unexpected pandemic crisis has resulted in a major havoc. Not only has it claimed precious lives but has also affected every walk of life in one way or another. Stock markets have crashed and businesses have faced losses. Demand in some industries has increased whereas, some industries have faced a major decrease in demand. Unemployment rates have doubled and countries across the globe have faced overall economic consequences. Thus, considering the need of time, this empirical study aims to explore the effects of Covid-19 crisis on family firms as most of the businesses in Pakistan are family owned. Interviews have been conducted with key respondents of family firms of various sizes in order to analyze how they are coping strategically with the ongoing pandemic crisis. Findings represent how challenging this pandemic crisis has proved to be for various firms. Not all industries have been equally affected by the crisis but nonetheless, cultural change has been a major issue faced by all. With digitization being the need of time, firms have become more closer to technology and are also intending to change or extend their existing business models if the pandemic situation does not improve in a few months. The study contributes to the literature of crisis management and proposes a model for firm adaptation and positioning.