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

Abstract

AbstractWhen 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.