Social capital of the family business and entrepreneurial succession: a theoretical approach
The classic approach to agency theory reduces the family business to the simple figure of a owner-manager for whom conflicts of interest do not exist. Recent work has shown that it is in fact a more complex organisational form built around the network that constitutes the family, and is based on the figure of the founding entrepreneur. We explain from a theoretical point of view how an inheritance may cause imbalance in the family, which is likely to erode the family capital and diminish the associated benefits thereof. We derive from the afore-mentioned, managerial implications and prospects for future research.