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Internal social capital and entrepreneurial orientation in family firms: A double-edged sword

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Abstract

Family bu sinesses are uniquely capable of holding two distinct forms of social relations: family social capital and non-family social capital. Family social capital represents the familial relationship between family members and their external networks. Non-family social capital refers to social relationships in an organizational context. Researchers have often acknowledged that family social capital is a “good thing.” However, previous research suggests that family social relationships can transmit dysfunctional family traits to the broader family business network. As a result of these mixed findings, the question has shifted from discussing whether family firms have more entrepreneurial orientation than non-family firms to investigating the circumstances under which family firms portray more entrepreneurial orientation because of their social relationships. To shed light on this paradox, we try to answer the following question: “How does the internal social capital resulting from the mutual interactions between family and business systems affects entrepreneurial orientation in family businesses?” Based on a qualitative approach, our study’s findings reveal that when families adopt business-oriented thinking, significant internal social capital flows between the family and the business are formed, and these flows are strongly related to entrepreneurial outcomes. However, when a family-oriented mentality is applied, the weak interaction between the family system and the business system leads to the adoption of more conservative business strategies, thus reducing the entrepreneurial orientation of these family businesses.

Résumé

Les entreprises familiales sont les seules à pouvoir entretenir deux formes distinctes de relations sociales: le capital social familial et le capital social non familial. Le capital social familial représente les relations familiales entre les membres de la famille et leurs réseaux externes. Le capital social non familial fait référence aux relations sociales dans un contexte organisationnel. Les chercheurs ont souvent reconnu que le capital social familial était une “bonne chose.” Cependant, des recherches antérieures suggèrent que les relations sociales familiales peuvent transmettre des traits familiaux dysfonctionnels au réseau plus large de l’entreprise familiale. En raison de ces résultats mitigés, la question n’est plus de savoir si les entreprises familiales ont une plus grande orientation entrepreneuriale que les entreprises non familiales, mais d’étudier les circonstances dans lesquelles les entreprises familiales ont une plus grande orientation entrepreneuriale en raison de leurs relations sociales. Pour éclaircir ce paradoxe, nous tentons de répondre à la question suivante: “Comment le capital social interne résultant des interactions mutuelles entre les deux systèmes de la famille et de l’entreprise affecte-t-il l’orientation entrepreneuriale des entreprises familiales?” Basés sur une approche qualitative, les résultats de notre étude révèlent que lorsque les familles adoptent une pensée orientée vers l’entreprise, d’importants flux de capital social interne entre la famille et l’entreprise se forment et ces flux sont fortement liés à des actions entrepreneuriales. Cependant, lorsqu’une mentalité orientée vers la famille est appliquée, la faible interaction entre le système familial et le système d’entreprise conduit à l’adoption de stratégies plus conservatrices, réduisant ainsi l’orientation entrepreneuriale de ces entreprises familiales.

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Authors and Affiliations

  1. Higher Institute of Computer Sciences and Management, University of Kairouan, LAMIDED (Laboratoire de Management de l’Innovation et Developpement Durable), Kairouan, Tunisia

    Yosra Mani

  2. Faculty of Economic Sciences and Management, University of Sousse, LAMIDED (Laboratoire de Management de l’Innovation et Developpement Durable), Sousse, Tunisia

    Lassaad Lakhal

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  1. Yosra Mani
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  2. Lassaad Lakhal
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Correspondence to Yosra Mani.

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Mani, Y., Lakhal, L. Internal social capital and entrepreneurial orientation in family firms: A double-edged sword. J Int Entrep 21, 505–549 (2023). https://doi.org/10.1007/s10843-023-00334-5

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