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How does family capital influence the resilience of family firms?

Author

Listed:
  • Imen Mzid

    (IHEC Sfax)

  • Nada Khachlouf

    (ICD Business School Paris)

  • Richard Soparnot

    (Group ESC Clermont)

Abstract

How does being a family business contribute to resilience in a turbulent business environment? We draw on the Sustainable Family Business Theory (SFBT) to highlight the role of family capital (human, social, and financial capital) in the resilience of a sample of family firms. We collected data through semi-structured interviews with managers of four Tunisian family firms after the political revolution between 2011 and 2014, which triggered economic instability and business discontinuities. Organizational agility and resilience consequently became vital. We find that social capital of family firms, which may be composed of local and/or international contacts, contributes the most to firms’ ability to absorb shocks, reallocate existing resources, and internalize practices that allow firms to cope with future disturbances. We also find that financial capital is largely determined by social capital and human capital of family firms. Our research contributes to the family business resilience literature by showing how developing resilience at an individual level (social capital) fosters organizational level (family business) resilience. The interactions between the three dimensions of social capital are particularly interesting for sustainable family business theorists. We show that financial capital mediates the impact of human and social capital in order to strengthen firms’ resilience. Our research also has implications for the international entrepreneurship literature: we found that international contacts provide family businesses in crisis with strong social support together with access to strategic opportunities at the local level. Future research could focus on the direct and indirect impacts of several dimensions of family capital in order to test which configuration of family capital leads to the greatest resilience. Studies could also further explore the impact of the network of international contacts in the strategic renewal of resilient family firms by identifying international opportunities.

Suggested Citation

  • Imen Mzid & Nada Khachlouf & Richard Soparnot, 2019. "How does family capital influence the resilience of family firms?," Journal of International Entrepreneurship, Springer, vol. 17(2), pages 249-277, June.
    • Handle: RePEc:kap:jinten:v:17:y:2019:i:2:d:10.1007_s10843-018-0226-7
    DOI: 10.1007/s10843-018-0226-7
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    4. Christina Guenther & Maksim Belitski & Nada Rejeb, 2023. "Overcoming the ability-willingness paradox in small family firms’ collaborations," Small Business Economics, Springer, vol. 60(4), pages 1409-1429, April.
    5. Alexander Tabares & Yanto Chandra & Claudia Alvarez & Manuela Escobar-Sierra, 2021. "Opportunity-related behaviors in international entrepreneurship research: a multilevel analysis of antecedents, processes, and outcomes," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 321-368, March.
    6. Nay Chi Khin Khin Oo & Sirisuhk Rakthin, 2022. "Integrative Review of Absorptive Capacity’s Role in Fostering Organizational Resilience and Research Agenda," Sustainability, MDPI, vol. 14(19), pages 1-27, October.
    7. Carlos de las Heras-Rosas & Juan Herrera, 2020. "Family Firms and Sustainability. A Longitudinal Analysis," Sustainability, MDPI, vol. 12(13), pages 1-27, July.
    8. Mustafa Ozguven & Chong Yan Gao & Mohamed Yacine Si Tayeb, 2021. "The Utilization of Autoregressive Forecasting Models in Strategic Management," International Journal of Science and Business, IJSAB International, vol. 5(7), pages 170-185.
    9. Espeche, José Francisco Tragant & Sacristán-Navarro, María & Zúñiga-Vicente, José Ángel & Crespo, Nuno Fernandes, 2023. "Innovation and internationalisation during times of economic growth, crisis, and recovery prior to Covid-19: A configurational approach comparing Spanish manufacturing family and non-family firms," Journal of Family Business Strategy, Elsevier, vol. 14(1).

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