Social networking in family businesses in a local economy

Abstract

Small, family owned businesses make considerable contributions to local economies. The importance of social networks to their development is also well established. This paper explores the different types of distinct, but interlocking, social networks of a rural business family, focussing upon the interaction between family, business and friendship networks. It presents a multi-rational logic framework to consider how the differing logics of each of these network influences the development and behaviour of family businesses. The changes in networks over time and between generations of the family are also analysed and gaps or structural holes within the networks identified. Implications for research and policy are then set out.