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Harvesting Family Firms' Organizational Social Capital: A Relational Perspective

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  • Shaker A. Zahra

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.

Suggested Citation

  • Shaker A. Zahra, 2010. "Harvesting Family Firms' Organizational Social Capital: A Relational Perspective," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 345-366, March.
  • Handle: RePEc:bla:jomstd:v:47:y:2010:i:2:p:345-366
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    References listed on IDEAS

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    10. William S. Schulze & Michael H. Lubatkin & Richard N. Dino & Ann K. Buchholtz, 2001. "Agency Relationships in Family Firms: Theory and Evidence," Organization Science, INFORMS, vol. 12(2), pages 99-116, April.
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    14. Eric Gedajlovic & Michael H. Lubatkin & William S. Schulze, 2004. "Crossing the Threshold from Founder Management to Professional Management: A Governance Perspective," Journal of Management Studies, Wiley Blackwell, vol. 41(5), pages 899-912, July.
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    Cited by:

    1. Zahra, Shaker A., 2016. "Developing theory-grounded family business research: Some suggestions," Journal of Family Business Strategy, Elsevier, vol. 7(1), pages 3-7.
    2. Tsao, Shou-Min & Lin, Che-Hung & Chen, Vincent Y.S., 2015. "Family ownership as a moderator between R&D investments and CEO compensation," Journal of Business Research, Elsevier, vol. 68(3), pages 599-606.
    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. Yoo, Taeyoung & Sung, Taeyoon, 2015. "How outside directors facilitate corporate R&D investment? Evidence from large Korean firms," Journal of Business Research, Elsevier, vol. 68(6), pages 1251-1260.
    5. A. Ashwin & Rishikesha Krishnan & Rejie George, 2015. "Family firms in India: family involvement, innovation and agency and stewardship behaviors," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 869-900, December.
    6. 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.
    7. repec:eee:fambus:v:8:y:2017:i:3:p:185-195 is not listed on IDEAS
    8. Wood Matthew S. & Rowe Jonathan D., 2011. "Nowhere to Run and Nowhere to Hide: The Relationship between Entrepreneurial Success and Feelings of Entrapment," Entrepreneurship Research Journal, De Gruyter, vol. 1(4), pages 1-43, October.
    9. 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.
    10. 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.
    11. repec:spr:intemj:v:14:y:2018:i:1:d:10.1007_s11365-017-0455-6 is not listed on IDEAS
    12. repec:eee:ecolec:v:138:y:2017:i:c:p:126-138 is not listed on IDEAS
    13. UMRANI Waheed Ali & MAHMOOD Rosli & AHMED Umair, 2016. "Unveiling The Direct Effect Of Corporate Entrepreneurship’S Dimensions On The Business Performance: A Case Of Big Five Banks In Pakistan," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 11(1), pages 181-195, April.
    14. 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.
    15. repec:eee:fambus:v:8:y:2017:i:3:p:137-156 is not listed on IDEAS
    16. William S. Schulze & Eric R. Gedajlovic, 2010. "Whither Family Business?," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 191-204, March.
    17. repec:eee:tefoso:v:126:y:2018:i:c:p:244-258 is not listed on IDEAS
    18. 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.
    19. 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.

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