Effects of family functions and structural changes on family business development (social capital evidence)

Effects of family functions and structural changes on family business development (social capital evidence)
Reza Jamali; Bahareh Abedin
International Journal of Entrepreneurship and Small Business, Vol. 18, No. 1 (2013) pp. 79 – 89
With transformation in family roles, social capital of society nowadays is faced with an uncertain future. This may raise challenges ahead of family business. The present work tries to emphasise on the role of family functions in family business development. Quality function development was applied in doing so. Taking the first step, effects of each one of seven dimensions and 27 indices of social capital was identified on six main challenges ahead of family business. Afterward, effects of family on social capital dimensions were identified as perceived by managers of 17 family-run cooperatives. General results implied that each one of family function indices has to do with social capital and none is an exception. The results showed that improvement and development of family role in carrying out its main function may guarantee development of family business, otherwise, challenges raised from changes on family function may be transferred to business environment.

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