When Do Family Ties Matter? Entrepreneurial Market Opportunity Recognition and Resource Acquisition in Family Firms

15 Pages Posted: 24 Mar 2011

See all articles by Delwyn Clark

Delwyn Clark

University of Waikato

Sharon Alvarez

University of Pittsburgh - Katz Graduate School of Business

Jay B. Barney

University of Utah - David Eccles School of Business

Date Written: 2003

Abstract

This paper focuses on the role of kinship or family ties in entrepreneurial activities. We develop theoretical models of entrepreneurial market opportunity recognition and resource acquisition for family firms based upon social network theory. Building upon Granovetter’s (1973) distinction between strong and weak ties, we introduce family ties as a special category of strong ties. To model these key entrepreneurial processes we adapt Boorman’s (1975) model of transmission of job information through a social network. Results demonstrate the importance of family ties for entrepreneurial opportunity recognition, but not for resource acquisition.

Keywords: Entrepreneurship

JEL Classification: M13

Suggested Citation

Clark, Delwyn N and Alvarez, Sharon and Barney, Jay B., When Do Family Ties Matter? Entrepreneurial Market Opportunity Recognition and Resource Acquisition in Family Firms (2003). Babson College, Babson Kauffman Entrepreneurship Research Conference (BKERC), 2002-2006, Available at SSRN: https://ssrn.com/abstract=1791760

Delwyn N Clark

University of Waikato ( email )

Te Raupapa
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Hamilton, Waikato 3240
New Zealand
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Sharon Alvarez

University of Pittsburgh - Katz Graduate School of Business ( email )

Pittsburgh, PA 15260
United States

Jay B. Barney (Contact Author)

University of Utah - David Eccles School of Business ( email )

1645 E Campus Center Dr
Salt Lake City, UT 84112-9303
United States

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