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Family Business Review
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Creating Value Across Generations in Family-Controlled Businesses: The Role of Family Social Capital

Carlo Salvato

EntER-Centre for Research on Entrepreneurship and Entrepreneurs, Bocconi University, Viale Isonzo 23, 20135 Milan, Italy, carlo.salvato@ unibocconi.it

Leif Melin

CeFEO-Centre for Family Enterprise and Ownership, Jönköping International Business School, P.O.Box 1026, SE-551 11 Jönköping, Sweden, leif.melin{at}ihh.hj.se

This article explores the processes through which family-controlled businesses (FCBs) access and recombine resources to match the evolving needs of their business activities. We do so by applying the conceptual lens offered by social capital to the comparative study of four FCBs active in traditional competitive arenas. Our data reveal that these firms' ability to create financial value over generations does not result from possession of some unique resource, nor from higher-level combinative capabilities; rather, these FCBs have systematically created value through their ability to renew and to reshape their social interactions within and outside the controlling family.

Family Business Review, Vol. 21, No. 3, 259-276 (2008)
DOI: 10.1177/08944865080210030107
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