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Family Business Review
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Family Capital of Family Firms

Bridging Human, Social, and Financial Capital

Sharon M. Danes

University of Minnesota

Kathryn Stafford

Ohio State University

George Haynes

Montana State University

Sayali S. Amarapurkar

University of Minnesota

The purpose was to present a family capital typology based on Sustainable Family Business Theory II and to document its relative contribution to short-term firm achievements and long-term sustainability using National Family Business Survey panel data. Family capital was defined as total owning-family resources composed of human, social, and financial capital. Family capital significantly contributed to firm achievements and sustainability. In the short term, all family capital types explained 13.5% of gross revenue variance and 4% of owner’s success perception variance. In the long term, all family capital types explained 26.7% of gross revenue variance and 11.6% of owner’s success perception variance.

Key Words: family business • family capital • financial capital • human capital • social capital

This version was published on September 1, 2009

Family Business Review, Vol. 22, No. 3, 199-215 (2009)
DOI: 10.1177/0894486509333424
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