Search results

Mergers and acquisitions (M&As) are a critical time for organizations and their consumers. For the company, there are many financial and non-financial risks. For customers, it requires deciding whether or not to continue the relationship that they had with the previous firm. This paper explores the extent to which communicating the family business (FB) brand, and the previous reputation of the acquirer affects customer perceptions and intentions after an M&A event.

Data for this study were collected from 159 Italian participants. We used a 2 (Communication of FB brand: Yes vs. No) by 3 (Reputation: positive, neutral, negative) between subjects’ experiment to test how the communication of the FB brand and the reputation of the acquirer affected perceived trustworthiness and service quality, and how this, in turn, influenced customer purchase intentions.

We find that communicating the FB brand does not influence consumer perceptions and intentions toward the acquired company. However, the previous reputation of the acquiring firm is critical in influencing consumer perceptions and intentions to buy.

Our study continues the growing research on M&A in family firms. It also increases our understanding of the boundary conditions of the FB brand effects, and the relevance that the previous reputation of a family firm can have in M&A scenarios. Finally, our study introduces the “Halo” and “Velcro” effects into the FB literature.

When organizations face a crisis that is a result of a transgression, crisis scholars suggest that the organization should apologize in order to accept responsibility for the event. In turn, this is expected to reduce the reputation damage to the organization. The assumption is that an apology statement is interpreted by stakeholders to be equal to accepting responsibility; however, this assumption has not been empirically examined. This paper seeks to address that gap.

A three (explicitness of accepting responsibility: none, implicit, explicit) by two (expressing regret: none, explicit) between subjects design was employed. Participants read an article about a crisis event, answered questions about perceived reputation, read one of six organizational responses, and responded to questions about reputation and anger caused by the response.

Results indicate that both accepting responsibility and expressing regret affect perceptions of reputation after a crisis and the anger felt by respondents. Additionally, apologies need an explicit statement of responsibility to increase their benefits for the organization.

Implications of this research include understanding the independent effects that accepting responsibility, expressing regret, and anger have on organizational reputation. Results can be useful for both academics and practitioners when thinking about how to respond to a crisis. Different strengths and limitations are discussed in the text.

The paper tests the assumption that an organizational apology is viewed as equal to accepting responsibility and explores some of the basic propositions of situational crisis communication theory. This study is also one of the first to examine the impact of the crisis response on stakeholder anger.

Justice perceptions describe an individual's evaluation of whether decisions or actions are fair or unfair. These perceptions are important because they affect individual attitudes and behaviors in different situations. Family firms develop and implement governance policies and structures (i.e., governance systems) to diminish the problems that can arise from the overlap between the business, the family, and the ownership systems of a firm. Governance systems help family firms have a clear structure of accountability and a clear understanding of the rights and responsibilities that family and non-family members have toward the family enterprise. Research on governance to date has focused on the practices and policies that exist and their effects on the family firm. However, in the governance context, individual perceptions are important because they are likely to affect the attitudes that family and other members have toward the family enterprise and the likelihood that they will follow the different policies when they are implemented. This chapter takes a receiver perspective to explain how individuals create justice perceptions based on governance mechanisms and the effects of these perceptions. The goal is to understand how we can use this information when developing governance practices in family firms.