Hughes_IH MH JFBS FSC as too much of a good thing ACCEPTED.pdf (428.83 kB)

When family social capital is too much of a good thing

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journal contribution
posted on 24.01.2019 by Ines Herrero, Mathew Hughes
Family social capital (FSC) is theoretically predicted to benefit family firm performance, but empirical results repeatedly disappoint this expectation. To bridge the disconnect between theory and empirical evidence, we conceptualize FSC as a multidimensional construct in which its dimensions exhibit a mix of positive and negative consequences resulting in a ‘too much of a good thing’ effect. At high levels, the structural dimension of FSC can cause the family firm to form a structured group and become trapped in its established networks, preventing new knowledge from entering the family firm. With a hand-collected dataset, we test a curvilinear relationship between the structural dimension of FSC and family firm financial performance, and linear effects from its relational and cognitive dimensions. We further examine whether possessing organizational social capital (OSC) mitigates the negative consequences of high FSC. We reveal that the form and combination of FSC matters more than its amount. We contribute to theory a co-dependent view of FSC and OSC (as two different social capitals) that appreciates their concurrent effects.

Funding

This work has been financed by the Ministry of Economy and Competence of Spain through Project ECO2016-75047-P.

History

School

  • Business and Economics

Department

  • Business

Published in

Journal of Family Business Strategy

Volume

10

Issue

3

Citation

HERRERO, I. and HUGHES, M., 2019. When family social capital is too much of a good thing. Journal of Family Business Strategy, 10 (3), 100271.

Publisher

© Elsevier

Version

AM (Accepted Manuscript)

Publisher statement

This paper was accepted for publication in the journal Journal of Family Business Strategy and the definitive published version is available at https://doi.org/10.1016/j.jfbs.2019.01.001.

Acceptance date

14/01/2019

Publication date

2019-02-26

ISSN

1877-8585

Language

en

Article number

100271

Exports