Family Businesses Overcoming the COVID-19 Crisis with Innovation: An Exploratory Analysis of the Jewelry Retail Sector in Spain

Abstract

Innovation is a trending topic in many disciplines but has a particular focus when it is studied in family businesses (FBs) due to their unique behavior in decision-making. Moreover, there is a gap in research on how these family businesses overcome economic crises by applying innovation. The main purpose of this paper is to provide empirical insight regarding this gap in an understudied sector, such as the Jewelry retail sector. This research was conducted in five cases, taken as examples of what these companies did, in terms of innovation, to overcome the COVID-19 crisis situation. This was considered sufficient, given the homogeneous structure of the sector and the exploratory nature of the research. The results revealed that different strategies caused them to obtain different results and clearly showed that FBs that used innovation during the crisis had better financial results. This paper contributes to the understanding of how FBs overcome economic crises by applying innovation. The implications for this type of business are also included.

1. Introduction

Innovation has always been relevant in management and is considered one of the fundamental keys to the survival of a company. Innovation can take various forms, including developing new activities, products, technologies, and forms of production, or expanding new markets [1]. Even in the simplest form of innovation, which can be an investment in technology, it is generally assumed that it will result in productivity and efficiency gains for most companies [2].

According to the Family Business Institute of Spain (2022), family businesses (FBs) represent 17 million companies in Europe, with job creation for 100 million people. Outside the European region, in the United States, the first world economy, FBs represent 80% of the businesses and generate 50% of employment in that country, according to this study. In Latin America, 85% of the businesses are FBs, employing 30% of the population. In Spain, in accordance with one pilot study on family businesses by the Statistics National Institute, FBs accounted for 89% of all companies, occupying 67% of the working population and 38.0% of the turnover [3].

Most of the companies in question are small and medium-sized enterprises (SMEs). Official statistics and empirical research on economic markets confirm that SMEs are the pillar of the global economy, regardless of the level of development of a country [4]. Additionally, SMEs have real innovative capabilities that can help them to thrive in both young and mature markets [5].

In the case of these FBs, there is an accepted gap in the literature regarding how they make management decisions, including their decision to carry out innovation strategies [6]. This paucity of studies also includes the decision to carry out innovation strategies; specifically, the intersection between FBs, innovation, and economic crisis has not been sufficiently studied, and new research is needed [7,8,9]. A specific search of Web of Science and Scopus was conducted of papers that include the topics of FBs, Innovation and Crisis together, finding that there are only seven papers in this research intersection, pointing to a lack of sufficient studies about this.

In previous papers on these topics, no one paper follows the methodology of company case studies. On the subject of FBs, there are no papers on the Jewelry retail sector, one of the most important segments in the retail industry, representing more than the half of the total stores, as is detailed later.

Taking stock of the literature review, this study focuses on analyzing the innovation patterns of Spanish jewelry FBs and the impact of the innovation strategies on different business performance indicators. This research aims to delve deeper into the behavior of Jewellery FBs and study the effect of innovation on overcoming an economic crisis. The research question of this study is to understand better how FBs, particularly from the Jewelry sector, overcome economic crises by applying innovation, and what the effect of this on performance is. The novelty of this work is that there have been no previous studies in this sector on innovation in Jewelry in times of crisis on business performance.

A case study comparison was conducted on how FBs in the Jewelry retail sector overcame COVID-19 in Spain from the perspective of innovation strategies behavior. Performing this research is the first step in an unexplored field. It will help us to better understand how FB, in this understudied sector, faced a crisis and survived hard times as those lived from 2020 to 2023.

The contribution of this research is to start filling a gap in the influence of innovation on overcoming an economic crisis in FBs, specifically in the Jewelry sector, which is highly relevant to the economy but lacks research.

2. Literature Review on Innovation and Family Businesses

A high degree of consensus can be found in the scientific literature regarding the importance of innovation in developing organizations [1,10,11], which is the key to understanding how companies survive and addressing the need to adapt to the changing environment in which they perform their activities. All company decisions must prioritize progress, sustainability, and social responsibility, not just economic gain; therefore, innovation is imperative from both the macro and micro perspectives [12].

Companies innovate by developing new activities, products, technologies, and forms of production, or by searching for new markets to extend their activities [1]. However, innovation also considers the adaptation of a product, activity, or form of production to contexts that are different from those for which they were initially designed [13].

Regarding FBs, there is no unanimity in the literature on the features that make up the boundaries of what is meant by FBs [14]. There is a tendency to minimize the heterogeneity of the definitions of FBs, creating a basic framework to establish some fundamental differences between FBs and non-FBs.

Despite this heterogeneity in the definitions that try to limit the perimeter of what is considered an FB, a list of factors can be used to define what an FB is; these are primarily related to the degree of control of the activity and the participation owned by these companies.

For this research, FBs are defined as those that belong to and/or are administered by one or more families, defining these as a group related by blood, marriage, or adoption, who share a typical dwelling [15].

FBs possess some distinct characteristics that can help them to achieve better results in innovation. First, FBs have a longer-term vision than other businesses; achieving short-term results is less important [16,17]. They will be more patient with returns on investment with a positive impact on cooperation since the consideration of the results requires a long-term vision [18].

Second, FBs are less risk-prone [19]. This could imply that they are less prone to innovation; however, innovation with cooperation, with the hand of an external agent, could help them to find ways to dispel doubts and dampen the sense of risk.

Third, FB workers are usually less professional and exhibit clear risks of inefficiency in the tasks assigned; however, at the same time, they are usually more satisfied, better paid, and coordinate their objectives with those of the company [19]. Cooperation in the conduct of innovation processes would be an appropriate way to develop innovations to replace the lack of professionalism from the outside.

In the context of the economic crisis due to COVID-19 and the recent war in Ukraine, it is essential to understand how companies overcome an economic crisis by adjusting their processes, products, or services, and applying innovation to their companies. The support of institutions for this type of company in these situations also becomes relevant. In order to promote economic growth, public authorities support R&D transfers and innovations, and educating citizens to contribute socially could also improve economic and company growth [20].

After reviewing the topics of FBs and innovation, there is a need for a better explanation of how this process helps to overcome an economic crisis, which is why this research will focus on this specific way to innovate in this kind of company.

This need also exists regarding innovation in companies within the specific Jewelry sector, mainly focusing on the impact of an economic crisis. Only one article was found in Web of Science that did not exactly examine this intersection but examined the marketing mix of Jewelry companies in the Thailand sector. This paper concluded that the COVID-19 crisis affected all value chain components and remarked that one way to overcome it is by creating new business opportunities, such as online platforms, and accelerating the speed of adaptation, ultimately through innovation [21].

This literature review clearly showed that our studied intersection is relevant; however, there is a lack of specific studies that analyze how innovation in Jewelry FBs impacts the performance to overcome an economic crisis. Consequently, the research question of this study is to better understand how FBs, particularly those from the jewelry sector, overcome economic crises by applying innovation and what the effect of this on performance is.

3. The COVID-19 Crisis in Spain

On March 11, 2020, the World Health Organization (WHO) called upon governments globally to brace themselves for the onset of the initial wave of a public health emergency, with an unprecedented crisis encompassing global health, societal dynamics, and economic stability, stemming from the COVID-19 pandemic [22].

In Spain, the first cases of COVID-19 were reported in February 2020, and many nations implemented stringent measures, including nationwide lockdowns, to curb close human interactions [23,24].

Stringent measures were implemented to combat successive waves of the COVID-19 epidemic. A strict lockdown and home confinement were enforced for three months starting from March 14, 2020. Subsequently, strategies included social distancing, mandatory mask use, movement restrictions, telecommuting, and limitations and hurdles in various economic sectors, such as retail [25].

The recurring surges in COVID-19 cases have led to a troubling slowdown in numerous sectors of the Spanish economy. This has resulted in significant uncertainty regarding the future of economic agents. The severity and speed of the next wave of infections and the success of vaccinations or other treatments remain unknown. Amidst this atmosphere of uncertainty, both aggregate demand and investment demand experienced a sharp decline [26]. From the perspective of FBs, it was not only a lockdown of a company but also the stagnation of a way of life, with a clear differentiation compared with the situation of non-FBs.

As a consequence, in 2020, the cumulative effect on the Gross Domestic Product (GDP) was −11.41%. The business turnover indicator experienced a change of −9.37% and the impact on the Spanish employment market was pronounced, with a cumulative rise of 11.9% [25].

This was not the first economic crisis in the current economic period. The financial crisis of 2008 was an extraordinary event that some analysts compared with the crisis of 1929–1933. The root of this crisis was the assumption of financial risk by all homeowners, similar to the more than 22 million Americans who purchased new or older houses between 2005 and 2007. When the “real estate bubble” burst, these homeowners lost a significant portion of their investment [27]. This study focuses on the COVID-19 crisis as a more recent event.

4. The Jewelry Sector in Spain

In 2019, Spain’s Jewelry and watchmaking sector experienced a 2% increase in revenue, reaching 1.78 billion euros compared with the 1.74 billion euros in the previous year. Specialized chains dominated with a 55% share of total income, followed by independent stores at 25.3% and large retail outlets at 19.7%.

Jewelry and costume jewelry emerged as the top-selling category, constituting 55% of overall sales, while watchmaking contributed 40% of the revenues. Other items, including silverware and accessories, comprised the remaining 6%. The top five operators of the sector accounted for 42% of sales, with the top ten companies collectively representing 55% of total sales.

By the end of 2019, Spain boasted a network of 9100 points of sale, with 30% integrated into chains. Despite this expansive network, there has been a recent decline in the Jewelry and watchmaking establishments in the country.

Due to the COVID-19 crisis, a significant variation was observed in the sales of this retail sector, with a decrease of 34.6% in 2020 compared with 2019, followed by an increase of 28.8% in 2021 relative to 2020. By 2022, a further growth of 6.7% over the previous year was expected [28].

Jewelry and watch e-commerce have experienced notable growth in recent years, reaching revenues of €130 million in 2021, which represents 9% of the total value of the retail market in this sector. Despite a challenging economic environment, provisional data for the end of 2022 indicated a further increase in revenue, reaching an estimated figure of €1.6 billion, an increase of 7% compared with 2021.

The number of points of sale in this market amounted to 8900. Regarding the market distribution by type of operator in 2021, specialized chains dominated with 56.3%, independent stores with 21.3%, and large stores and others with 22.4%.

Market concentration, measured by combined market share by value in 2021, revealed that the top five companies controlled 41.3%, while the top ten reached 54.9%. This data highlighted the significant presence of a few key companies in the Jewelry and watch trade landscape. This Jewelry sector will be considered to analyze how FBs innovate to overcome an economic crisis.

According to the latest data available from the Spanish Federation of Jewellers, only 21% of companies have employees, which means that at least 80% of companies in the sector are self-employed and family businesses [29].

5. Methodology

We selected the case study as a research method valid for understanding the dynamics within single settings [30]. To design the methodology used for this case study, we followed the guidelines of De Massis and Kotlar (2014) [31]. As they stated, case studies have a significant position among qualitative methods, mostly in organizational studies, and are one of the most widely embraced qualitative approaches [32]. They are recognized for contributing to theory generation and testing management studies, offering groundbreaking insights. Specifically, research case studies of FBs have emerged as the predominant qualitative methodology [33] and are often regarded as a way to build theory and impact within the academic community [34].

The first step was deciding which case study would be conducted. We selected an exploratory study, as this is the best way to understand phenomena in depth, particularly in exploring organizational dynamics [30]. This will better answer the research question about how innovation impacts the results of companies during an economic crisis.

We decided next on the unit of analysis. As this research focuses on the differences between companies that made or did not make innovations during the economic crisis and the results of this different behavior, we selected a multiple-case study. In this context, multiple-case studies offer a more robust foundation for theory construction due to the possibility of comparisons, analyzing a phenomenon within individual settings and across different contexts [31]. The sampling method called “polar types” [35] was followed by selecting companies with different scenarios, enabling a data comparison between companies that innovated. In this case, the sector is very homogenous in structure and market conditions, so it was considered sufficient to select five cases as examples, given the exploratory nature of our research.

We used a list of fifty companies in the sector to select the case studies. We studied the characteristics of each of them to carefully choose the ones that represented the sector with different profiles and to include the “polar types” with and without innovation during the COVID-19 pandemic. Finally, five companies were included in the research.

To have all the necessary information about the cases, we collected knowledge from archives, observations, and assessments to tell the story of each company and its behavior and performance during the COVID-19 crisis. We conducted non-structured interviews during September and October 2023 with the managers of the companies about their experience during the months of lockdown and how they reopened their businesses after this event. To complete the stories, we analyzed their websites and also conducted talks with workers’ and managers’ relatives. The integration of these data types is crucial in FB research due to the nature of family dynamics and business operations in decision-making processes. Employing multiple data sources reinforces data reliability and the depth of analysis [36]. An analysis of their different stories and how they have survived over the years is also described. They were all second- or third-generation families, so they can be compared as consolidated companies with the same tradition.

Finally, the results are presented as synthetic evidence. The innovation strategy is explained in context with the local and regional situation in every case and in relation to the decisions made during and after the crisis. It is also important to detail the structure of the family in the companies. Then, the financial results are presented in each case to allow us to answer the research question.

6. Description of Case Studies

6.1. Company 1

Company 1 began its Jewelry business in the 1960s in Huelva using a self-employed business legal form. In the 1990s, the company changed to a limited company legal form to give entry to the spouse and children of the self-employed businessman, who were the sole administrators of the company. Simultaneously, the company diversified its activity with a second location dedicated to hairdressing and aesthetic services. Half of the children worked in the business regularly throughout this period. At the beginning of the 2000s, the management of the company was changed in favor of one of the sons. More establishments were opened, reaching five active locations, four of which were dedicated to the Jewelry business.

During COVID-19, the company employed more than 30 workers, 20% of whom were family members. They took advantage of the COVID-19 inactivity workers’ regulations for almost all of them. They also maintained their online store activity with three active workers, which meant that the business did not have to close entirely during the time of the limitation of traditional commercial activities. Online sales were introduced in the company in around 2010; therefore, during COVID-19, there was already enough experience to maintain and increase the activity of the company.

The data on its activity reflects that it was one of the few companies that managed to increase its turnover during 2020, during the COVID-19 crisis. During the partial opening of the activity, the company gradually opened all its establishments and recovered the ERTE work. This ERTE is a “Temporary Employment Regulation File”, a legal procedure that allows employers to suspend or reduce their workers’ employment contracts temporarily.

From the COVID-19 experience, the company boosted its online sales through its website and a European marketplace, allowing it to sell in other countries, such as Germany, Italy, France, Portugal, and Poland. This entire internationalization strategy went hand in hand with creating its own Jewelry brand, which allowed it to expand its catalogue with unique pieces on the market, differentiating itself from its competition in consumer Jewelry and enabling it to compete more in sales margins and without competition.

Among these plans, the company informed us of the possibility of studying new regional openings, hand in hand with its exclusive brand, replicating the innovation strategy with new products.

6.2. Company 2

Company 2 began its business in the gift sector, including Jewelry, in the 1950s as a sole trader. Due to its proximity to the border with Portugal, the company had a large influx of buyers from the other side. In 1991, the company expanded its activity to begin with the optical service. The business owner was motivated by training one of their children in this discipline, changing the business format to a joint venture comprising all family members, married and children. From that moment, the company began its growth in its region, favored by the permanent opening of the border due to the Schengen agreement, which allowed it to attract more clients from the Portuguese towns close to Spain.

Since 2010, the company has exclusively incorporated brands with recognized penetration in the medium Jewelry sector, which allowed it to grow in this segment over the following years.

At the beginning of 2018, the company changed from a social format to the current format to deliver to other family members, in this case, the 3rd generation of the company, who will gradually join as company workers. Now, 50% of employees are family members. In those years, sales through the Internet also began, using a website where the company could offer its catalogue of Jewelry and watch products, in addition to its decoration and furniture activity.

During the COVID-19 crisis, and due to a significant dependence on clients from Portugal, activity was reduced by the more extended closure of the border between countries. Despite staggered openings within the same population, with other neighboring locations or regionally, this posed a challenge for all companies in the area. Not in vain, according to the Chamber of Commerce and the Association of Small and Medium Entrepreneurs (Apyme) of Ayamonte, during the first week of the opening of the border, after three months of closure, sales doubled compared with the total closure. During that closure, sales dropped between 30% and, in some cases, up to 100% [37].

In the case of this company, to recover from the COVID-19 crisis, online sales were promoted. The offer of brands was reduced and, although this was a point of attraction for establishments, represented a margin that did not compensate for the investment of demand that, in many cases, compelled these trademarks.

Despite following this strategy, sales significantly reduced during 2020, partially recovering in the following years, with a projection of improvement in the coming years due to the disinvestment in unprofitable brands. Employment was maintained despite the crisis due to the efforts of the family in providing funds to the company.

6.3. Company 3

Company 3 began its activity in the 1970s in Cartaya, one of the most important tourist towns in the province of Huelva. It had a remarkable increase in population in the summer due to its beaches, which gave its activity a high seasonal component. The father of the family started the activity by selling gift items. In a short time, his establishment became a reference for the municipality. In the 1990s, his wife joined the store as a collaborator, specializing in Jewelry items. During those years, they specialized in consumer Jewelry, in the middle segment of customers. From that moment on, the couple’s children began to join the activity as workers at the establishment.

Starting in 2000, the business passed into the name of the wife due to the retirement of the father of the family, but it did not alter its structure of workers, 80% of which consisted of the family’s children.

The company adapted to the consumption patterns of the Jewelry segment, incorporating brands recognized by the general public in Jewelry and watches, which were affordable in price but had a recognizable quality.

In 2015, the owner retired, but the activity continued under the direction of one of the sons. The second generation of the family business began, continuing with its positioning as a medium customer segment.

During the COVID-19 crisis, they kept the establishment without activity. They were subject to a complete ERTE of the staff until the gradual reopening was ordered by the authorities, keeping some of their workers inactive while family consumption recovered. In this case, the strategy followed was caution and slow incorporation into the activity. Since this company did not have sales through online channels, its only source of business was the physical store. However, from the data, it can be observed that the strategy was correct in matching the reopening to the real recovery of the activity of society in general, cushioning the impact on the sales figures.

In this case, a conservative business maintenance strategy, incorporating brands recognized by the general public and adapting to fashions and consumer trends, allowed the company to maintain its activity without major shocks due to the COVID-19 crisis.

In conversation with the family, they plan to change the owner’s company structure to all the members and officially appoint a manager for one of the children.

6.4. Company 4

The business tradition of company 4 dates back to 1960, with one of the oldest establishments in its sector in the province of Jaén. The province’s main activity is agriculture, with the production and export of olive oil one of its primary sources of activity. This leads us to link the activity of local companies to the behavior of agricultural activity.

In the case of the company studied, its most crucial growth occurred in the 1980s and 1990s, as one of the most recognized establishments in the medium–high segment of the province, with luxury brands in Jewelry products and watchmaking. Starting in the 1990s, the activity passed into the name of the spouse, who continued with the activity in the upper–middle segment, with the gradual incorporation of the children into the commercial activity as company workers.

In 2015, the company moved to a commercial format, where only some of the children of the marriage participated, as the rest had professions unrelated to the Jewelry trade activity. One of the children was appointed as director, moving the first generation to the background, only participating in the company’s structure but not in decision-making; all employees were family members.

From those years onwards, and due to the consequences that the province of Jaén was carrying from the financial crisis of 2008, a change of location and a restructuring of the business were decided in favor of brands from a more affordable segment for the public in general, managing to maintain activity despite the indicators of its environment. It should be noted that, unlike the other case studies, this location did not have the tourist dynamism on which the activity depends; it had a primarily local audience.

Concerning the crisis caused by COVID-19, the company continued its Jewelry line in the middle segment of the market and gradually opened its business, following the authorities’ instructions. Because the activity depended mainly on the local public and agricultural activity was not particularly marketed during the pandemic, the company continued its usual activity without making any extra changes or innovations. This example serves as a case to see the results of overcoming the crisis when no innovation was made in products or strategies.

6.5. Company 5

Company 5 also emerged as an individual entrepreneur in the 1980s in Malaga’s coastal town of Torre del Mar. In this case, once again, a population with a seasonal variation throughout the year was described, with an increase in population in the summer months and, consequently, in its economic activity, largely dependent on the occasional population.

The business segment that the company addresses is, in this case, a medium level of consumption, with the attraction of brands recognized by the public and pieces of Jewelry for regular consumption, such as traditional celebrations of Spanish culture, from birth to marriage, etc.

In the 2010s, due to the 2008 financial crisis, the company decided to change location, with improved positioning on main street of the town, which meant an improvement in the visibility of the company. In 2014, due to the death of the owner, the family decided on a new business structure to give entry to all the family’s children to participate in the company, selecting one of the children as its director. Only half of the children worked effectively in the company, with the rest of the family participating but without entering into the daily decision-making.

In 2020, the company began its development of online sales with its own sales website. In this case, it was not promoted as a sales attraction point but rather as an informative website for the company itself for face-to-face sales.

During the COVID-19 crisis, the company had a conservative strategy, maintaining the activity with minimal risk, keeping non-family workers in prolonged inactivity, and supporting the burden of the activity on family workers, who represented 75% of all workers at the company. Although it is not the subject of these case studies, it has been observed that this has been an expected behavior in family businesses to overcome the COVID-19 economic crisis, with the incorporation of family members into work. At the same time, income remained low due to the risks of non-payment of wages, which the family members themselves can tolerate.

In this case, the innovation was carried out in the previous crisis of 2008, with the change of location and reorganization of its offer, with good results. Still, no strategy, product, or market change was made to overcome the COVID-19 crisis, with results that were not optimal. Furthermore, in this particular case, a change also took place in the management structure of the company, with the entry into decision-making of a member of the family who was previously only a participant and the departure of another member who became only a participant, without making decisions in the future. It was detected that this was the factor that had a drag on the recovery and explained why decisions had not been made about innovation.

7. Findings

The results of this study explore the financial implications of the COVID-19 crisis on companies, focusing on key metrics such as turnover variation, annual results, merchandise purchases, subsidies received, and employment wages. Reviewing these factors using the diverse innovation strategies adopted will reveal the effectiveness of the different innovation approaches used to mitigate the impact of the crisis.

For every case study, the turnover variation by year is listed. By comparing the variations annually, the effect of the innovation strategies will show the success or failure in sustaining business revenue during the crisis period. To have more details on the explanation of these results, the merchandise purchases show the companies’ prediction of the subsequent period sales.

Another detail included is the subsidies received. This will help to explain the variation in the turnover and measure, for policymakers, how effective public help is linked to the innovation strategies to overcome an economic crisis. Employment wages can also be considered as a rate of companies’ confidence in their future performance. It will provide a more comprehensive view of the situation of every company.

By examining these factors, from innovation strategies to government support, a comprehensive understanding of how businesses overcome the economic crisis will be exposed.

7.1. Business Turnover

From the financial statements, the variation in business turnover was noted to compare the results of the innovation strategies over the COVID-19 crisis. The comparison was not only made to the annual variation but also to 2019 before the crisis started (

Table 1. Business turnover variation during the crisis.

	VAR19–20	VAR19–21	VAR19–22	VAR20–21	VAR21–22
Company 1	9.93%	14.00%	17.50%	3.70%	3.07%
Company 2	−25.44%	−8.99%	−3.94%	22.06%	5.55%
Company 3	−4.51%	12.29%	11.13%	17.59%	−1.04%
Company 4	−45.61%	−13.21%	−42.85%	59.57%	−34.15%
Company 5	−28.54%	−27.07%	−7.35%	2.05%	27.04%

).

The best performance was for Company 1, which increased its turnover even during the crisis using a strategy of increasing investment in its brand, online shop, and alliances with different marketplaces. The result was that the company was able to expand their turnover in this period. Company 3 also showed good results in the years after the crisis, especially in 2021, recovering and increasing its pre-crisis turnover. In this case, the strategy was to increase the sales of independent brands and maintain the same employment structure but to give more voice to younger family members in the company’s management.

7.2. Variation in Annual Results

Other financial statements linked to the turnover are the result of each year of activity. Here, the variation of the results from 2020 to 2022 compared with 2019 and the interannual variation during this period is described (

Table 2. Variation in annual results during the crisis.

	VAR19–20	VAR19–21	VAR19–22	VAR20–21	VAR21–22
Company 1	346.04%	−265.32%	−1107.46%	−137.06%	−509.41%
Company 2	−1402.57%	−267.94%	−2442.57%	87.11%	−1294.85%
Company 3	−9.48%	−39.38%	−71.35%	−33.03%	−52.74%
Company 4	−1896.70%	334.78%	−414.80%	111.76%	−319.27%
Company 5	8.17%	−43.06%	−133.81%	−55.79%	−63.44%

).

Through analyzing this data, it can be observed, on the one hand, that even though Company 1 had the best performance in turnover, the results do not match this increase in turnover. This can be explained by the investment to develop the new brand and the increase in wages yearly. It was only in the year after the crisis that they had the best result. On the other hand, Company 4, which did not use an innovation process to overcome the crisis, performed better two years after COVID-19; however, this was not enough to recover the previous results. This concluded that the innovation did not explain the results of overcoming a crisis, so it should be put in context with more variables.

7.3. Merchandise Purchased

The details on the merchandise purchased revealed the decision made as a prevision of the market demand (

Table 3. Variation of merchandise purchased during the crisis.

	VAR19–20	VAR19–21	VAR19–22	VAR20–21	VAR21–22
Company 1	36.75%	19.17%	−0.18%	−12.85%	−16.24%
Company 2	−19.68%	15.53%	21.47%	43.83%	5.14%
Company 3	−2.01%	15.05%	9.07%	17.41%	−5.20%
Company 4	−79.83%	−69.51%	−68.12%	51.18%	4.56%
Company 5	−36.22%	−4.32%	−7.93%	50.03%	−3.78%

). By reviewing this variable, we could observe how companies expected to perform after the crisis using the different strategies.

Most companies seemed to have a bad forecast for the year of COVID-19, decreasing, in all cases, the purchases of the goods to be sold. However, Companies 1 and 3 were the only ones increasing or at least maintaining the purchases during this year, explained by the fact that they continued selling online, for Company 1, and recovered their activity earlier with the family workers, in the case of Company 3. After reviewing these purchase details and the turnovers, there were some relations between them, which means that the previsions made by the family were quite accurate with the reality of the market.

7.4. Subsidies Received to Mitigate the Crisis

Essential support during the crisis was the subsidies that the authorities provided to the companies to mitigate the lockdown period, support workers’ costs, and recover the activities after the crisis. In this case, the relation between the subsidies received and the turnover of the company was given so that it could be compared with the companies independently of the business size (

Table 4. Subsidies over turnover received to mitigate the crisis.

	2020	2021	2022
Company 1	0%	3.60%	0%
Company 2	0%	4.11%	0%
Company 3	0%	5.71%	0%
Company 4	0%	0.00%	49%
Company 5	0%	4.23%	0%

). The subsidies related to labor costs were not considered, and all were given to companies under the same conditions and during the entire crisis period.

In most cases, the subsidies arrived the year after the crisis and in a similar proportion, around 3% to 5%, which put all the companies in the same conditions to overcome the situation with the help of this public assistance. Interestingly, the proportion of these subsidies was the same for the companies, at least in this retail sector, and they were not linked to the development of the innovation strategies in the companies. Company 4 obtained another kind of subsidy because they were a smaller company, and the proportion of turnover cannot be compared with the rest of the cases.

7.5. Employment Wages

Finally, during COVID-19, the main problem was maintaining physical activities, such as traditional shops and retail stores. Consequently, employment was also damaged in companies. The wage variation from 2020 to 2022 was compared with 2019 and the interannual variation during this period (

Table 5. Employment wage variation during the crisis.

	VAR19–20	VAR19–21	VAR19–22	VAR20–21	VAR21–22
Company 1	−4.15%	16.11%	24.15%	21.13%	6.93%
Company 2	−13.77%	1.21%	8.49%	17.36%	7.19%
Company 3	1.66%	24.67%	34.88%	22.63%	8.19%
Company 4	−44.67%	23.28%	26.25%	122.79%	2.41%
Company 5	−36.58%	−18.40%	18.31%	28.67%	44.99%

).

In all cases, a decrease in wages paid in 2020 was observed, but not in Company 3, where most workers were family members, and in Company 1, which decided to increase the activity of the online shop. After that, during the years 2021 and 2022, all the companies increased their wages, not only to recover all workers’ activity but also to increase employment in the business.

7.6. Comparison among Cases

By comparing these five cases of companies in the retail Jewelry sector, insight into the innovation strategies of these companies was revealed.

In each case, the results can be observed during the same year of the crisis, in 2020 and the subsequent years, giving valuable information on what should be investigated in deeper and longer studies.

For example, Company 1, thanks to brand creation innovation, was able to maintain its sales and even increase them during the crisis and in the subsequent years. Still, given the annual results, it can be considered that adequate results were not obtained despite this increase in sales. Looking in more detail at the salary figures, it can be considered that these results have been weighed down by the salary increase. However, the innovation strategy is fundamental as an object of the study that must attend to other factors that influence the result together to obtain more adjusted indicators.

In the case of Companies 2 and 3, a component was revealed that must also be considered in future studies, such as the market to which the companies are directed and how this component influenced the innovation that is developed. In both cases, a continuous adjustment of brands was observed. However, market factors influenced how that product innovation should be executed. In the first case, there was a strong cross-border component that, in the first place, hindered sales during the border closure but subsequently led to a strong recovery. In the second case, the seasonal component had the most influence on sales, as the summer periods had a much larger population. Still, perhaps this market segment was not so influential in these companies. In this case, the selection of the products must be balanced between the local and floating public, and the results of both the income and the annual results are shown.

Companies 4 and 5 followed a more conservative strategy, maintaining their business lines and markets without significant changes. The results in these cases were worse than the other three companies in the comparison, which led us to conclude that innovation is a differentiating element in overcoming a crisis.

8. Discussion and Conclusions

After carrying out this study, it can be concluded that innovation is a determining factor in obtaining better results and overcoming a crisis more quickly.

Following different innovation strategies in times of crisis, from new products and services to new markets or portfolios, the company could maintain or increase its sales during crises in front of companies that did not make innovations.

On the other hand, evidence has been found on the long-term vision of family businesses compared with the rest [16,17] regarding their patience in investment returns. It was observed that, despite continuously obtaining losses in the years after the crisis, the maintenance of employment and the survival of the companies themselves is generally higher.

Concerning risk aversion in FBs [19], from what was expressed by the managers in the interviews, we can deduce that it is indeed a characteristic of these companies. This is linked to the previous conclusion since they endure adverse results for longer, with a long-term vision, but also risk their assets for the survival of the company.

The research also reaffirms the conclusions found in the only research found on FBs in the jewelry sector [21]. This relationship was confirmed in the changes in the marketing mix of companies as a lever to improve competitiveness and overcome the crisis, for example, using sales through online platforms.

However, innovation alone is not enough to explain the magnitude of the performance, so it has to be combined with other factors, such as the market to which the companies are directed. This research revealed that market factors influenced how product innovation should be executed, with the example of a robust cross-border or seasonal component. A more conservative strategy, without innovation, tends to have more negative results than those that do not.

For all the above, in relation to the research question of a better understanding of how family businesses overcome an economic crisis with the help of innovation, particularly in companies in the Jewelry sector, the characteristics found in the literature review are highlighted; therefore, it could be stated that innovation is a good strategy for the sustainability of FBs in an economic crisis.

The results of this research justify that carrying out innovation is a good option to overcome an economic crisis in the sense that income and results improve; therefore, companies could bet on future crises by carrying out changes in their products, services, or sales channels to cushion the effects of said event.

As policy implications, institutions can learn about the advantages of innovations in companies so that the economy is reactivated, especially in periods of crisis, reflected in policies and public strategies, like subsidies received to mitigate the situation.

The limitations of this research are twofold. First, as recognized earlier, the number of analyzed cases considered sufficient for this exploratory study could be considered scarce to generalize the results. Consequently, as future research, an increased number of analyzed cases would benefit the generalizability of the study. Second, the multidimensional concept of both innovation and performance could be better analyzed with more in-depth data, not coming only from qualitative sources, but also quantitative. As a consequence, future research should include these mix-methods.