Family Capital in Family Businesses

2020 ◽  
pp. 1-21
Author(s):  
Astrid Kramer ◽  
Brigitte Kroon
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Empirical Work ◽  
Family Businesses ◽  
Three Dimensions ◽  
Financial Capital ◽  
Review Of The Literature ◽  
Family Capital ◽  
The Family ◽  
Business Family

Family capital is all social, human, and financial capital a family has at their disposal in the family to advance the business. Family capital is the pool of resources unique to family business and it has the potential for family businesses to gain competitive advantage over nonfamily businesses in today's competitive landscape. To advance the knowledge about strategic management in family businesses, this chapter reviews quantitative empirical work on each dimension of family capital and concludes that the field is still in its infancy. Most studies concentrate on (a part of) social capital, a few on human capital, and very few on all three dimensions. The review of the literature describes avenues for further research on family capital.

Family Capital in Family Businesses

2022 ◽  
pp. 938-958
Author(s):  
Astrid Kramer ◽  
Brigitte Kroon
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Empirical Work ◽  
Family Businesses ◽  
Three Dimensions ◽  
Financial Capital ◽  
Review Of The Literature ◽  
Family Capital ◽  
The Family ◽  
Business Family

Family capital is all social, human, and financial capital a family has at their disposal in the family to advance the business. Family capital is the pool of resources unique to family business and it has the potential for family businesses to gain competitive advantage over nonfamily businesses in today's competitive landscape. To advance the knowledge about strategic management in family businesses, this chapter reviews quantitative empirical work on each dimension of family capital and concludes that the field is still in its infancy. Most studies concentrate on (a part of) social capital, a few on human capital, and very few on all three dimensions. The review of the literature describes avenues for further research on family capital.

scholarly journals Family social capital and governance of family businesses: The emerging market evidence

2022 ◽  
Vol 5 (2, special issue) ◽  
pp. 225-232
Author(s):  
Nada Moufdi ◽  
Ali Mansouri
Keyword(s):  
Social Capital ◽  
Cultural Context ◽  
Family Firms ◽  
Emerging Market ◽  
Family Businesses ◽  
Three Dimensions ◽  
Governance Mechanisms ◽  
Governance System ◽  
Family Social Capital ◽  
The Family

Considered as the most dominant business form in the entrepreneurial fabric in Morocco, as in the majority of countries in the world (Salhi, 2017), the family business is distinguished by a family social capital (FSC) making it competitive and perennial (Mesfar & Ben Kahla, 2018). This paper aims to analyze the influence of this capital, through its three dimensions — structural, relational, and cognitive — on the governance system of Moroccan family firms. The results of our exploratory study conducted among 30 family businesses in the form of interviews showed, on the one hand, that the existence of a strong FSC within the company makes its governance system based on informal family mechanisms. On the other hand, the weakness of the said capital has not led the companies that are the subject of our study to adopt formal corporate governance mechanisms as shared by several researchers. This is due, according to the interviewees, to socio-cultural considerations. Our results contribute to the enrichment of the literature while showing that the informality of governance mechanisms can be explained, not only by the strength of its FSC but also by such a socio-cultural context where the family model is of a communal and clan type welded by Islamic religious values of group cohesion

Family succession, professionalization and internationalization: a study of Brazilian family businesses

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Augusto Dalmoro Costa ◽  
Aurora Carneiro Zen ◽  
Everson dos Santos Spindler
Keyword(s):  
Family Business ◽  
Family Members ◽  
Secondary Data ◽  
Family Businesses ◽  
Three Dimensions ◽  
Content Type ◽  
The Family ◽  
Two Generations ◽  
Internationalization Strategies ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the relationship between family succession, professionalization and internationalization in family businesses within the Brazilian context.Design/methodology/approachThe paper presents a multiple-case study method with three Brazilian family businesses that have at least two generations of the owning family involved in the business and an international presence of at least three years. In-depth interviews and secondary data were undertaken with family and non-family members of each case.FindingsThe authors' results show that a family business can boost its internationalization by introducing both succession planning and professionalization on international activities. As family members tend to be more risk-averse and focused on keeping the family business within the family, professionalization is a way of improving the firm's ability to expand internationally. This process tends to lead to lower performance by the firm for the first few months or the first year after the investment, but afterward, international performance tends to grow exponentially.Originality/valueOnly a few studies have been concerned on the relationship of these three dimensions. Thus, the research takes into account that professionalization and succession lead family businesses to improve their internationalization strategies.

scholarly journals Determinants of Micro-Enterprise Success through Microfinance Institutions: A Capital Mix and Previous Work Experience

2020 ◽  
Vol 21 (2) ◽  
pp. 803-823
Author(s):  
Waseem Ul Hameed ◽  
Hisham Bin Mohammad ◽  
Hanita Binti Kadir Shahar
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Work Experience ◽  
Financial Capital ◽  
Primary Data ◽  
Research Approach ◽  
Capital Social ◽  
Microfinance Institutions ◽  
Enterprise Success

The prime objective of the study is to highlight the role of the capital mix (financial capital, social capital, human capital) on women micro-enterprise success with moderating role of previous work experience. Women owned micro-enterprise success is less as compared to the male owned micro-enterprsie, particularly in Pakistan. Rate of faliure in women micro-enterpeise is more, that is the reason women community is one of the most vulnerable group worldwide. It is evident from literature that less attention has been paid to highlight the importance of three types of capital for women micro-enterprise. To adress this issue, the current study adopted quantitative research approach and based on cross-sectional research design. Primary data was collected by using 5-point Likert scale. Questionnaires were distributed among the owners of women micro-enterprise in Pakistan by using area cluster sampling. SmartPLS 3 was used to analyze the data. It is found that financial capital, social capital and human capital has significant positive relationship with women micro-enterprise success and previous work experience moderates the relationship. Hence, this study contributed by developing a unique framework for women micro-enterprise success. It will be beneficial for practitioners to enhance women micro-enterprise success rate.

STUDI HUBUNGAN ANTARA MODAL MANUSIA, MODAL SOSIAL, DAN MODAL KEUANGAN DENGAN STRATEGI INOVASI PERUSAHAAN UKM

SIMAK ◽  
2019 ◽  
Vol 17 (01) ◽  
pp. 84-118
Author(s):  
Wihalminus Sombolayuk ◽  
Ria Mardiana Yusup ◽  
Indrianty Sudirman
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Conceptual Framework ◽  
Financial Capital ◽  
Innovation Strategy ◽  
Positive Relationships ◽  
Literature Study ◽  
Innovation Strategies ◽  
Relationship Of ◽  
The Relationship

This study draws on the conceptual framework of the relationship between human capital and innovation strategies and the relationship of social capital on innovation strategies and the relationship between financial capital and innovation strategies. This research is a literature study and the development of a conceptual framework on SMEs as an analysis. The results of the study succeeded in formulating three prepositions, namely a) a positive relationship between human capital and the company's innovation strategy; b) positive relationships between social capital and SME company innovation strategies; c) positive relationships between financial capital and the company's innovation strategy. The higher human capital, social capital, and financial capital, the better the formulation and implementation of innovation strategies in SME companies.

Getting more than money through online crowdfunding

2019 ◽  
Vol 11 (2) ◽  
pp. 171-186 ◽  
Author(s):  
Stephanie Macht ◽  
Geoffrey Chapman
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Qualitative Analysis ◽  
Design Methodology ◽  
Psychological Capital ◽  
Financial Capital ◽  
Message Board ◽  
Content Type ◽  
Message Boards ◽  
Practical Implications

Purpose Many businesses invest significant resources to develop human, social and psychological capital, yet Crowdfunding (CF) activities have the potential to build all of these non-financial forms of capital at the same time as raising finance. The purpose of this paper is to explore the non-financial forms of capital that entrepreneurs and businesses using online CF activities can gain from their backers without having to ask for it. Design/methodology/approach The study used thematic, qualitative analysis to explore the comments and queries that crowdfunders posted on the publicly visible message board of individual CF projects on Kickstarter, one of the world’s leading crowdfunding platforms (CFPs). Findings Fund-seekers can gain more than money from crowdfunders: they can enhance their own human capital (e.g. knowledge of the viability of the project), social capital (e.g. the development of a bonding relationship) and psychological capital (e.g. self-efficacy and resilience) by effectively interpreting unsolicited comments and questions. Research limitations/implications This study is based on typed comments on CFP message boards, which limits insights into underlying reasons and motivations. However, the qualitative analysis of message board comments demonstrates how this type of data can be utilised to explore crucial aspects of CF that have to date been neglected. Practical implications Comments from many crowdfunders can provide useful information to fund-seeking entrepreneurs and businesses, although some of it may require interpretation. Originality/value The opportunity for fund-seekers to gain non-financial capital from crowdfunders, without having to ask for it, has not previously been explicitly considered in the field.

Immigrant family businesses: social capital, network benefits and business performance

2015 ◽  
Vol 21 (6) ◽  
pp. 842-866 ◽  
Author(s):  
Jasmine Tata ◽  
Sameer Prasad
Keyword(s):  
Social Capital ◽  
Family Business ◽  
Business Performance ◽  
Business Owners ◽  
Family Businesses ◽  
Community Capacity ◽  
Immigrant Family ◽  
Immigrant Community ◽  
Content Type ◽  
Family Capital

Purpose – The purpose of this paper is to look at immigrant family business through the framework of social capital by investigating how the social capital of immigrant family business owners helps them obtain network benefits and improve business performance. Design/methodology/approach – This paper presents an empirical investigation of 170 immigrant family business owners. The authors examine social capital as a multidimensional construct and focus on two attributes of social capital: structural embeddedness and relational embeddedness. In addition, this study examines how social capital influences business performance through the mediating effect of network benefits. Finally, the constructs of family capital and immigrant community capacity are also investigated. Findings – The results suggest that the two attributes of social capital differed in their effects on network benefits, and that network benefits mediated the influence of social capital attributes on family business performance. Specifically, relational social capital influenced access to resources and information, and structural social capital influenced access to resources. Family ties affected network benefits and business performance, and immigrant community capacity had the predicted moderating effect on the relationship between immigrant community ties and network benefits. Originality/value – This investigation has the potential to advance understanding of immigrant family businesses by assessing how the overall social capital of the family business owner influences business performance. The study also furthers the understanding of family capital and immigrant community capacity. In addition, these results serve practitioners by helping identify avenues to increase immigrant family business performance, an issue that is increasingly important today given the contribution of such businesses to the economic vitality of societies.

Multigenerational Transition in Family Businesses: A New Explanatory Model

2005 ◽  
Vol 18 (4) ◽  
pp. 267-282 ◽  
Author(s):  
Johan Lambrecht
Keyword(s):  
Family Member ◽  
Transfer Process ◽  
Continuous Process ◽  
Fundamental Principle ◽  
Family Businesses ◽  
Explanatory Model ◽  
The Family ◽  
Individual Family ◽  
The Individual ◽  
Business Family

This article presents an explanatory model for transfer of family businesses to following generations. Our research using 10 case studies shows that transfer of family businesses is a lifelong, continuous process, in which the family must address and foster the soft elements of the transfer process: enterpreneurship, freedom, values, outside experience, upbringing, and education. Furthermore, a business family can develop into a family dynasty only when it embraces sound governance as a fundamental principle; that is, the individual family member belongs to the family, which belongs to the business.

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