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Social Capital in Micro-family Enterprises: A Case Study in East Java, Indonesia

Author

Listed:
  • Augendra Bhukuth

    (Ieseg Management School, France)

  • Damien Bazin

    (Université Côte d'Azur
    GREDEG CNRS)

  • Ani Wulandri

    (Narotama University, Surabaya, Indonesia)

  • Valentina Teslenko

    (ARENAP, Russia)

Abstract

Family businesses operating mainly in the informal economy in East Java, Indonesia, generally employ family members and neighbors. As part of a qualitative study on employer-employee relationships, we interviewed the owners of 37 of these family businesses (30 small and 7 medium) to investigate the level of responsibility they feel towards their employees. By using a Social Capital approach to analyze the data, we found that the relationship between employers and employees is based on trust, and that family businesses have to maintain this trust to be able to sustain their activities in a highly competitive market. We then describe the ups and downs of managing employees when the employer-employee relationship is close.

Suggested Citation

  • Augendra Bhukuth & Damien Bazin & Ani Wulandri & Valentina Teslenko, 2022. "Social Capital in Micro-family Enterprises: A Case Study in East Java, Indonesia," GREDEG Working Papers 2022-11, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    • Handle: RePEc:gre:wpaper:2022-11
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    More about this item

    Keywords

    Decent work; Employers-employees relationship; Family Business; Informal sector; Microenterprises; Social benefits; Social capital;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market

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