Networks in family business: a multi-rational approach

Abstract

Purpose Current research on networks in family businesses has approached the topic from a mono-rational perspective where the family, business and social networks are each considered in relative isolation. This paper argues that multi-rational approaches, which accept that the three groups of networks interact and overlap, offers a useful alternative perspective. Design/Methodology/Approach Conceptual Paper FindingsThe paper suggests support for the use of multi-rational approaches. A model forms part of the exploration of multiple-rationalities, and offers an appropriate basis for future research. Evidence from the literature is presented as a basis for further exploration using empirical approaches. ImplicationsFamily businesses are the most common form of business in developed countries. By acknowledging their importance and exploring the factors that make family businesses different, the practical and social implications reflected in current research can be more fully explored. Originality/ValueIn proposing the case for multiple rationalities as a framework within which family business networking can be viewed -and in putting forward an initial model -the paper allows the interaction of the different networks within the family business to be more fully acknowledged.

Social networking in family businesses in a local economy

“…This approach offers support for a multi-rational perspective (Seaman et al, 2014), but also suggests that network development for smaller businesses may best be approached by encouraging smaller businesses to consider the potentially useful network ties that may exist within the family, business and friendship networks.…”

“…Further, the multiple rationalities of the family, business and friendship networks that coexist in families in business (Seaman et al, 2014(Seaman et al, , 2015 contribute to the context in which local economic development activity takes place (Seaman et al, 2016). This paper analyses the relationships between three types of social networks, i.e.…”

“…One exception is the concept of familieness, defined as 'the resources and capabilities related to family involvement and interaction' (Chrisman et al, 2005, p468). While the networks of a business form an integral part of these resources and capabilities, Seaman et al (2014) have argued that the family influence changes the way in which the networking process develops, due to the varying influences of the family, business and friendship networks, and hence a multi-rational approach is useful in providing new insights into the analysis of networks that surround the family business. A multi-rational approach is defined here, as an acceptance that family rationales, business logic and the needs of the family business are distinct from each other but intertwine; with different rationales taking precedence at different times and in different circumstances.…”

The role of context understanding South Asian family firms in Scotland and the succession paradox

“…Family businesses remain the most common form of business in existence (Seaman et al, 2014;Sharma, 2004), run by families in a wide variety of communities and contexts (Wright et al, 2014;Seaman et al, 2016). The initial instigation of any business is in part a reaction to contextual factors, such as redundancy, closure of traditional industries or population movement.…”

“…However, it is important that these firms are also placed within the domain of functioning businesses and as a result they must also be viewed here through the theoretical lens of the encompassing small business research. The decision to focus this current research in the small business domain is based on a number of factors, including the importance and quantity of SMEs within the wider economy (Seaman et al, 2014;Sharma, 2004) and the SME employment route being an opportunity for those who may, for a variety of reasons, find themselves at least partially excluded from mainstream employment opportunities. It is perhaps also important to note that the work in this area needs to be rooted in the widely expressed belief within the communities that the businesses themselves must work as businesses if they are to benefit both the community and succeed as a viable sustainable concern (Seaman et al, 2016).…”