Utilization of Inherited Social Networks in Family Businesses: The Next Generation's Perspective

Abstract

This study investigated the dynamics of managing inherited social networks within multi-generational family businesses (FB). This research employed a multiple-case study approach to investigate how successors effectively manage and utilize inherited social networks to drive FB growth. The data collection process drew upon six in-depth cases comprising 37 semi-structured interviews and 24 participant observations. This study identified the critical success factors for the next-generation’s utilization of inherited tie management patterns. Specifically, this research introduced three distinct successor orientations: Perpetuate Orientation, Catalyze Orientation, and Synergize Orientation. This research also introduces a set of propositions, a framework, and the utilization of an inherited network growth matrix strategy. Furthermore, this research reveals the nuanced role of siblings and long tenured, trusted ‘right-hand’ employees in preserving and transferring strategic networks to foster continued success within FBs. This research contributes to a better understanding of social network management, particularly within the intergenerational FB context and encouraging further research in this area.