Do Spanish Family SMEs Make Appropriate Use of Their Organizational Websites?: An Analysis of Family Firms' Brand Promotion and Website Quality Level

Do Spanish Family SMEs Make Appropriate Use of Their Organizational Websites?: An Analysis of Family Firms' Brand Promotion and Website Quality Level

Rubén Martínez-Alonso, María J. Martínez-Romero, Daniel Rodríguez-Rodríguez
Copyright: © 2021 |Pages: 20
DOI: 10.4018/978-1-7998-8003-5.ch010
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Abstract

The aim of this chapter is to analyse how family SMEs use digital media, particularly organizational websites, to disseminate information about their products, services, history, etc. To this end, the authors perform a descriptive analysis of 32 organizational websites from privately owned family SMEs located in the region of Andalusia (Southern Spain), emphasizing two differentiating strategies: promotion of the family firm brand and website quality level. On the one hand, the findings show that family firms are to some degree reluctant to promote their family firm brand on their organizational websites, with the indicator of being a family firm as the most communicated. On the other hand, the findings reveal that family firms tend to develop organizational websites with an adequate quality level; however, the inclusion of components, such as FAQ or help sections or a bilingual option, need to be considered in the future.
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Introduction

In recent decades, the continuous renewal of digital media, such as organizational websites or social networks, as well as the emergence of new information and communication technologies, have completely revolutionized the business world (Alves et al., 2020; Gruner & Power, 2018). Furthermore, family firms represent a form of organisation that has been attracting significant attention from scholars and practitioners in global markets (De Massis et al., 2018). This increased interest is not surprising given that family firms, defined as those businesses ‘dominantly controlled by a family with the vision to potentially sustain family control across generations (Zellweger, 2017, p. 22), have become the backbone of the majority of the world’s economies by generating around 70–90% of annual global GDP and creating approximately 50–80% of employment in most countries worldwide (Casado-Belmonte et al., 2021; IEF & Red de Cátedras de Empresa Familiar, 2018; Martínez-Alonso et al., 2020a).

Extant literature on this theme points to the rise of digital media as one of the possible factors that has enabled family firms to gain considerable momentum within the business sphere (Zanon et al., 2019). The application of digital media has contributed to making work more efficient and easier, improving the image and reputation of family firms, as well as increasing their firm profitability (Gallucci et al., 2015; Sageder et al., 2018). Nevertheless, the incorporation of these digital media in the context of family firms has also provoked heated debates among family firm owners and managers (e.g., Barroso-Martínez et al., 2019). On the one hand, some family firm owners and managers consider that digital media allows them to establish differentiation strategies and even reach broader markets (Binz Astrachan & Botero, 2018). On the other hand, certain family firm owners and managers question the utility of these digital media for their organizations, as they believe that instead of ensuring control of the firm and guaranteeing its subsistence, digital media might bring negative consequences for the business family (Treem Jeffrey & Leonardi, 2012).

In order to shed new light on this debate, this chapter aims to conduct a descriptive analysis of the use and dissemination of information through organizational websites by family firms. To do so, this study focuses on examining the promotion of family firm brand and website quality level. First, the promotion of family firm brand, conceived as the action through which a family firm promotes its family status as part of its communication strategy (Binz Astrachan & Astrachan, 2015), is an emerging issue on which empirical work is still lacking (Botero et al., 2013; Leonardi & Vaast, 2017). Therefore, in an attempt to deepen in the promotion of family firm brand, this chapter will examine the following indicators in family SMEs’ organizational websites (Barroso-Martínez et al., 2019): being a family firm, ownership level, presence of family members in top management teams, family history, generation in control, and family name as part of the firm name. Second, website quality level is also a topic of growing debate, as having a website with a certain degree of quality could be very beneficial to offer a better image to the market and the competition (Krappe et al., 2011; Sageder et al., 2018). In this regard, and to get further insights on the website quality level of the analysed firms, this chapter will assess such quality through four areas (Cober et al., 2004): content, form, functionality, and connectivity to social networks.

Key Terms in this Chapter

Family Managers: Family members of a family firm actively participating in the top management team.

Digital Media: It refers to any form of media that can be created, viewed, modified, and distributed through electronic devices.

Customers: Individuals or firms that purchase goods or services from other firms.

Family Owners: Family members of a family firm participating in the firm’s ownership.

Andalusia: It is a geographical region located in the southern of Spain. It is the most populated geographical region in Spain and the second in territorial extension.

Organizational Website: Websites whose purpose is to manage a firm presence on internet, facilitate information about the firm, display and sell their products or services, and serve as a means of communication with suppliers and customers, among other stakeholders.

Communication Strategy: It is a tool that helps firms align their general goals with a marketing plan focused on achieving a set of results.

Firm Performance: Economic outcomes obtained because of the interaction between firms’ characteristics, actions, and environment.

Family Firm Heterogeneity: Differences in the behaviours, objectives, and values of family firms due to high or low degree of family involvement in the firm.

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