Family Social Capital in Family Business: A Faith-Based Values Theory

Abstract

When this study was initiated in 2008, the concept of family social capital was new to the family business discipline. This paper summarizes in-depth qualitative research grounded in owning family experience to understand the nature and source of owning family social capital. Exploratory research began with roundtable discussions among family business owners, advisors, and researchers to understand how owning families sustain positive relationships characteristic of family social capital. These discussions revealed that some family business owners rely on their family faith to sustain and establish ethical norms. A follow-up review in the family studies literature revealed that many families rely on family faith practices and faith-based narratives to reinforce ethical norms that strengthen family relationships. Based on these findings, researchers developed hypotheses to guide additional research. Four owning families affiliated with different Christian denominations participated in in-depth qualitative research that supports hypotheses. Interviews and archival data revealed very similar faith-based practices, beliefs, and values across the four owning families. And additional qualitative evidence indicated positive connections between values-based family social capital and family owner succession, business performance, and community support. Theoretical relationships derived from qualitative data are summarized in a Faith-Based Values Theory of Family Business.

Contributing to the sustainable development goals as normative and instrumental acts: The role of Buddhist religious logics in family SMEs

“…However, Freston (2019) suggests that some forms of religion can question the presuppositions and forces behind the elaboration of the SDGs and thus, the logics behind their adoption by SMEs. Religion remains important to frame which logics may have a stronger weight in CSR decisions due to the fact that religion calls family businesses to be action-oriented in terms of how and why they integrate their faith (Sorenson and Milbrandt, 2022) with sustainability and responsibility concerns (Hoffman and Sandelands, 2005). More recently, studies suggest that religion may positively affect attitudes towards environmental sustainability for family-owned businesses (Singh et al, 2021).…”

The interplay between digital social capital and family-owned SME performance: a study of social media business networks

“…For instance, when negative feelings and conflict occur between members of family businesses, family relationships can easily help generate liability, trust and cooperation among family members in the way of working together and supporting each other (Sorenson and Bierman, 2009). Consequently, such relationships can attract family human and other capital (e.g., external finance, collaboration) to the business (Herrero, 2018;Sorenson and Milbrandt, 2022).…”

“…Consequently, such relationships can attract family, human and other capital (e.g. external finance, collaboration) to the business (Herrero, 2018; Sorenson and Milbrandt, 2022).…”

“…We advance the understanding of social capital and RBV theory through social media business networks as business resources (both intangible and tangible resources) for family-owned SMEs to develop their business performance. Specifically, family social capital is often seen as a significant driver for family businesses to improve business performance by fostering bonding and relationships among family members via collaborative efforts and mutual support (Herrero, 2018; Sorenson and Milbrandt, 2022). Social media business networks can assist family-owned businesses in rapidly expanding family social capital through the creation of digital social capital.…”

“…Sorenson and Bierman (2009) also mention that family social capital is different from social capital created by non-family businesses since family businesses rarely hire human resources and obtain other types of capital elsewhere. Thus, this specific type of social capital mainly exists within family relationships (Sorenson and Milbrandt, 2022). For instance, when negative feelings and conflict occur between members of family businesses, family relationships can easily help generate liability, trust and cooperation among family members in the way of working together and supporting each other (Sorenson and Bierman, 2009).…”