One size fits all? Managing trust and privacy on social networking sites in Russia and Germany

When it comes to platform sustainability, mitigating user privacy concerns and enhancing trust represent two major tasks providers of Social Networking Sites (SNSs) are facing today. State-of-the-art research advocates reliance on the justice-based measures as possible means to address these challenges. However, as providers are increasingly expanding into foreign markets, the effectiveness of these measures in a cross-cultural setting is questioned. In an attempt to address this set of issues, in this study we build on the existing model to examine the impact of culture on the robustness of four justice-based means in mitigating privacy concerns and ensuring trust. Survey responses from German and Russian SNS members are used to evaluate the two structural equation models, which are then compared. We find that perceptions regarding Procedural and Informational Justice are universally important and hence should be addressed as part of the basic strategy by the SNS provider. When expanding to collectivistic countries like Russia, measures enhancing perceptions of Distributive and Interpersonal Justice can be additionally applied. Beyond practical implications, our study makes a significant contribution to the theoretical discourse on the role of culture in determining individual perceptions and behavior.

Ready for a crisis? How supervisory boards affect the formalized crisis procedures of small and medium-sized family firms in Germany

Overcoming a crisis situation in which the socioemotional wealth (SEW) of a family is at risk can be threatened by a lack of formal crisis procedures, which can increase the probability of organizational decline. Thus, not being prepared for a crisis situation may be a critical factor in the long-term survival of family firms. From a corporate governance perspective, supervisory boards may achieve higher levels of crisis readiness. Applying the resourced-based view and SEW theory, we analyze the relationship between family ownership and formalized crisis procedures in 150 small and medium-sized German firms. Our results show that formalized crisis procedures decrease as family ownership increases. Including supervisory boards in our analysis, we find a significant moderating effect of supervisory boards on the relationship between family ownership and formalized crisis procedures. Specifically, our results suggest that family firms with supervisory boards show similar levels of formalized crisis procedures as non-family firms with supervisory boards. In contrast, family firms without supervisory boards exhibit lower levels of formalized crisis procedures compared with non-family firms without supervisory boards. We also discuss managerial implications, limitations, and future research.