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Harvesting Family Firms' Organizational Social Capital: A Relational Perspective

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  • Shaker A. Zahra
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    Abstract

    Organizational social capital (OSC), the goodwill and resources companies gain from their relationships with other companies, enables family firms to assemble the resources (especially knowledge) necessary for successful adaptation. Connecting with new ventures, the vanguard of radical change, is a priority for family firms seeking to achieve survival, profitability and growth. Yet, new ventures are often not well known and their networks are poorly structured, making access to them difficult. Using the relational perspectives on interorganizational relationships, this study proposes that family firms can employ their OSC to reach new ventures. Family firms can invest in these ventures, build profitable business relationships and alliances with them, as well as assist in governing their operations. Data from 779 companies show that family firms are in better positions to harvest their large OSC stocks to connect with new ventures. The results underscore the value of OSC as an important relational resource for family firms. Copyright (c) 2010 The Author. Journal compilation (c) 2010 Blackwell Publishing Ltd and Society for the Advancement of Management Studies.

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Management Studies.

    Volume (Year): 47 (2010)
    Issue (Month): 2 (03)
    Pages: 345-366

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    Handle: RePEc:bla:jomstd:v:47:y:2010:i:2:p:345-366

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    Cited by:
    1. Stafford, Kathryn & Danes, Sharon M. & Haynes, George W., 2013. "Long-term family firm survival and growth considering owning family adaptive capacity and federal disaster assistance receipt," Journal of Family Business Strategy, Elsevier, vol. 4(3), pages 188-200.
    2. Mazzi, Chiara, 2011. "Family business and financial performance: Current state of knowledge and future research challenges," Journal of Family Business Strategy, Elsevier, vol. 2(3), pages 166-181.
    3. Evila Piva & Cristina Rossi-Lamastra & Alfredo De Massis, 2013. "Family firms and internationalization: An exploratory study on high-tech entrepreneurial ventures," Journal of International Entrepreneurship, Springer, vol. 11(2), pages 108-129, June.
    4. David Pastoriza & Miguel Ariño, 2013. "Does the Ethical Leadership of Supervisors Generate Internal Social Capital?," Journal of Business Ethics, Springer, vol. 118(1), pages 1-12, November.
    5. Wright, Mike & Kellermanns, Franz W., 2011. "Family firms: A research agenda and publication guide," Journal of Family Business Strategy, Elsevier, vol. 2(4), pages 187-198.
    6. Zamudio, César & Anokhin, Sergey & Kellermanns, Franz W., 2014. "Network analysis: A concise review and suggestions for family business research," Journal of Family Business Strategy, Elsevier, vol. 5(1), pages 63-71.
    7. Marc Essen & J. Oosterhout & Michael Carney, 2012. "Corporate boards and the performance of Asian firms: A meta-analysis," Asia Pacific Journal of Management, Springer, vol. 29(4), pages 873-905, December.

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