Integrating family, friendship and business networks in family firms

Abstract

Design Semi-structured interviews of thirteen family-owned and managed businesses are used to establish the patterns of networking. A detailed case study is then presented, allowing a deeper qualitative analysis of the interaction of different types of networks.

Purpose This paper considers the multiple social networks of small family businesses and the dynamic interactions between them. It analyses family, friendship and business networks and the way additional ties within the networks become visible when they are considered together rather than separately.

Findings The findings explore multiple rationalities employed in the networking of family businesses and how different aspects of their individual family, friendship and business networks contribute to business development.

Research Implications The paper suggests that a multi-rational theoretical perspective of the family, rather than a solely business-related perspective, deepens our understanding of the dynamics of family businesses behavior and that different types of businesses may be influenced to varying degrees by different rationalities.

Practical Implications Business networking tends to be deliberately encouraged by business support agencies, often via the deliberate development of events. A deeper understanding of the manner in which small businesses use and develop networks would enhance the direction and effectiveness of such investment.

Social Implications Business networking tends to be deliberately encouraged by business support agencies, often via the deliberate development of events. A deeper understanding of the manner in which small businesses use and develop networks would enhance the direction and effectiveness of such investment.

Originality The value of this research lies in the proposition that smaller businesses in rural areas are often surrounded by the inter-woven networks of family, business and community.