Integrating Family, Friendship and Business Networks in Family Firms

Abstract

This paper considers the multiple social networks of small family businesses and the dynamic interactions between them. It analyses their family, social and business networks and the way that additional ties within the networks become visible when they are considered together. The findings explore how these networks (and their underlying multiple-rationalities based on the family, friendship and/or business) contribute to business development. The findings further suggest that different types of businesses are influenced to differing degrees by each rationality. The paper concludes that a multi-rational theoretical perspective of the family business that considers family, social and business networks together, rather than solely business-related or family and business perspectives, helps provide a more complete understanding of the dynamics of family businesses behavior.