Resource Acquisition in Family Firms: The Role of Family-Influenced Human and Social Capital

Does family-influenced human capital (FIHC) facilitate or hamper resource acquisition? Previous literature is scant and offers a negative portrayal of the family business context in this respect. We question this negative view of the phenomenon by arguing that FIHC may be beneficial to resource acquisition when family members are characterized by high bridging social capital. More specifically, we argue that family-influenced bridging social capital positively moderates the relationship between FIHC and resource acquisition, as bridging social capital reduces the disadvantages of FIHC allowing for the advantages to come to the fore. Our hypothesis is tested and confirmed on a data set of 241 family firms based in the Republic of Ireland.