Relationship between family and non-family social capital: The case of Spanish family firms

Abstract

This paper analyses the influence of family members’ social capital on non-family members’ social capital in family firms. It tests the impact of one type of social capital on another type of social capital using structural equation modelling techniques. The sample consists of 172 Spanish family firms in which at least two family members and two non-family members work in each firm. Data analysis shows that family social capital has a direct and positive influence on non-family social capital and the relationships between some of the social capital dimensions in each group. This research provides family firms with insights on which aspects of their members’ relationships are important to creating an ideal environment in the firm for generating social capital. It shows that relationships between all family members are key to increasing non-family social capital. This is the first study to analyse the effects of relationships between family members on those of non-family members. This work examines both the influence of the various social capital dimensions within each group and between the two groups in family firms, using an integrated model.