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Old flames never die – the role of binding social ties for corporate entrepreneurship in family firms

Author

Listed:
  • Vanessa Weimann

    (Witten/Herdecke University)

  • Maike Gerken

    (Witten/Herdecke University)

  • Marcel Hülsbeck

    (Witten/Herdecke University)

Abstract

This paper investigates the role of social ties and family embeddedness for corporate entrepreneurship in family firms. Family firms are mostly characterized by close and often inseparable ties between the dominant family coalition and the firm and offer specific resources within a context of both rational as well as non-rational factors that influence entrepreneurial strategies. We empirically test (n = 181) the relationship between binding social ties and innovation, strategic renewal, and corporate venturing. Our findings indicate a strong significance for networks and close and stable relationships both to inside the firm and the outside in decision making for corporate venturing and innovation. In contrast, the results for strategic renewal show no relevance of strong social ties. We link up with the debate on the role of owners as an important stakeholder group.

Suggested Citation

  • Vanessa Weimann & Maike Gerken & Marcel Hülsbeck, 2021. "Old flames never die – the role of binding social ties for corporate entrepreneurship in family firms," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1707-1730, December.
    • Handle: RePEc:spr:intemj:v:17:y:2021:i:4:d:10.1007_s11365-021-00749-3
    DOI: 10.1007/s11365-021-00749-3
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    2. Stefano Ghinoi & Riccardo Vita & Bodo Steiner & Alessandro Sinatra, 2024. "Family firm network strategies in regional clusters: evidence from Italy," Small Business Economics, Springer, vol. 62(1), pages 87-103, January.

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