Skip to main content
SpringerLink
Log in

Social Capital, Market Competition, and Productivity Growth in Family Businesses in Ghana

  • Chapter
  • First Online:
Family Businesses in Sub-Saharan Africa

Abstract

This study examines the effects of social capital, developed as a result of the social networking relationship with top managers of other firms and community leaders, on productivity growth in family businesses in Ghana. It further investigates how market competition moderates the relationship between social capital and productivity growth. An analysis of the data from 54 family businesses over two time periods indicates that (1) social capital from the social networking relationships with top managers of other firms helps the productivity growth of family businesses, (2) social capital from the social networking relationships with community leaders is beneficial to family businesses by facilitating the growth of productivity, and (3) the benefit of social capital from both top managers from other businesses and community leaders to family businesses is moderated by market competition. The relationship between social capital and productivity growth is tempered by the intensity of competition in the market environment.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
eBook
USD 16.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Acquaah, M. (2005). Enterprise ownership, market competition and manufacturing priorities in a sub-Saharan African emerging economy: Evidence from Ghana. Journal of Management Governance, 9(2), 205–235.

    Article  Google Scholar 

  • Acquaah, M. (2007). Managerial social capital, strategic orientation, and organizational performance in an emerging economy. Strategic Management Journal, 28, 1235–1255.

    Article  Google Scholar 

  • Acquaah, M. (2011a). Utilization and value of social networking relationships in family and nonfamily firms in an African transition economy. European Management Journal, 29, 347–361.

    Article  Google Scholar 

  • Acquaah, M. (2011b). Business strategy and competitive advantage in family businesses in Ghana: The role of social networking relationships. Journal of Developmental Entrepreneurship, 16(1), 103–126.

    Article  Google Scholar 

  • Acquaah, M. (2012). Social networking relationships, firm-specific managerial experience and firm performance in a transition economy: A comparative analysis of family owned and nonfamily firms. Strategic Management Journal, 33, 1215–1228.

    Article  Google Scholar 

  • Acquaah, M. (2013). Management control systems, business strategy and performance: A comparative analysis of family and non-family businesses in a transition economy in sub-Saharan Africa. Journal of Family Business Strategy, 4, 131–146.

    Article  Google Scholar 

  • Acquaah, M., & Eshun, J. P. (2010). A longitudinal analysis of the moderated effects of networking relationships on organizational performance in a sub-Saharan African economy. Human Relations, 63(5), 667–700.

    Article  Google Scholar 

  • Adler, P. S., & Kwon, S. (2002). Social capital: Prospects for a new concept. Academy of Management Review, 27, 17–40.

    Google Scholar 

  • Adu-Febiri, F. (1995). Culture as the epitome of the human factor in development: The case of Ghana’s collectivistic ethic. In S. Adjibolosoo (Ed.), The significance of the human factor in African economic development (pp. 55–70). Westport, CT: Praeger.

    Google Scholar 

  • Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Thousand Oaks, CA: Sage Publications.

    Google Scholar 

  • Anderson, R. C., & Reeb, D. M. (2003). Founding-family ownership and firm performance: Evidence from S&P 500. Journal of Finance, 58, 1301–1328.

    Article  Google Scholar 

  • Andrews, R. (2010). Organizational social capital, structure and performance. Human Relations, 63(5), 583–608.

    Article  Google Scholar 

  • Arregle, J.-L., Hitt, M. A., Sirmon, D. G., & Very, P. (2007). The development of organizational social capital: Attributes of family firms. Journal of Management Studies, 44, 74–95.

    Article  Google Scholar 

  • Bertrand, M., & Schoar, A. (2006). The role of family in family firms. Journal of Economic Perspectives, 20(2), 73–96.

    Article  Google Scholar 

  • Bourdieu, P. (1986). The forms of capital. In J. Richardson (Ed.), Handbook of theory and research for sociology of education (pp. 241–258). New York: Greenwood.

    Google Scholar 

  • Burt, R. S. (1997). The contingent value of social capital. Administrative Science Quarterly, 42, 339–365.

    Article  Google Scholar 

  • Chrisman, J. J., Chua, J. H., & Litz, R. A. (2004). Comparing agency costs of family and non-family firms: Conceptual issues and exploratory evidence. Entrepreneurship Theory and Practice, 28(4), 335–354.

    Article  Google Scholar 

  • Chrisman, J. J., Chua, J. H., & Sharma, P. (2005). Trends and directions in the development of a strategic management theory of the firm. Entrepreneurship Theory and Practice, 29, 555–575.

    Article  Google Scholar 

  • Coleman, J. S. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94, S95–S120.

    Article  Google Scholar 

  • Dubini, P., & Aldrich, H. E. (1991). Personal and extended networks are central to entrepreneurial process. Journal of Business Venturing, 6, 305–313.

    Article  Google Scholar 

  • Dyer, J. H., & Nobeoka, K. (2000). Creating and managing a high performance knowledge sharing network: The case of Toyota. Strategic Management Journal, 21, 345–347. Special Issue.

    Article  Google Scholar 

  • Dyer, J. H., & Singh, H. (1998). The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23, 660–679.

    Google Scholar 

  • Gargiulo, M., & Benassi, M. (2000). Trapped in your own net? Network cohesion, structural holes, and the adaptation of social capital. Organization Science, 11, 183–196.

    Article  Google Scholar 

  • Gomez-Mejia, L. R., Cruz, C., Berrone, P., & De Castro, J. (2011). The bind that ties: Socioemotional wealth preservation in family firms. The Academy of Management Annals, 5(1), 653–707.

    Article  Google Scholar 

  • Gujarati, D. N. (2003). Basic econometrics (4th ed.). New York: McGraw Hill/Irwin.

    Google Scholar 

  • Habbershon, G. T., & Williams, M. L. (1999). A resource-based framework for assessing strategic advantage of family firms. Family Business Review, 12, 27–39.

    Article  Google Scholar 

  • von Hippel, E. (1988). The source of innovation. New York: Oxford University Press.

    Google Scholar 

  • Hoffman, J., Hoelscher, M., & Sorensen, R. (2006). Achieving sustained competitive advantage: A family capital theory. Family Business Review, 19(2), 135–145.

    Article  Google Scholar 

  • Khanna, T., & Palepu, K. (1997). Why focused strategies may be wrong for emerging economies. Harvard Business Review, 75(4), 41–49.

    Google Scholar 

  • Kuada, J., & Buame, S. (2000). Social ties and resource leveraging strategies of small enterprises in Ghana. In O. J. Sorensen & E. Arnold (Eds.), Proceedings of the 7th International Conference on Marketing and Development, (425–439) University of Ghana. Ghana: Legon.

    Google Scholar 

  • Lane, P. J., & Lubatkin, M. (1998). Relative absorptive capacity and interorganizational learning. Strategic Management Journal, 19, 461–477.

    Article  Google Scholar 

  • Larson, A. (1992). Network dyads in entrepreneurial settings: A study of the governance of exchange processes. Administrative Science Quarterly, 37, 76–104.

    Article  Google Scholar 

  • Leanna, C. R., & Pil, F. K. (2006). Social capital and organizational performance: Evidence from urban public schools. Organization Science, 17, 353–366.

    Article  Google Scholar 

  • Levring, R., & Moskowitz, M. (1993). The ten best companies to work for in America. Business and Society Review, 85(1), 26–38.

    Google Scholar 

  • Li, H., & Zhang, Y. (2007). The role of managers’ political networking and functional experience in new venture performance: Evidence from China’s transition economy. Strategic Management Journal, 28, 791–804.

    Article  Google Scholar 

  • Li, J. J., Poppo, L., & Zhou, K. Z. (2008). Do managerial ties in China always produce value? Competition, uncertainty, and domestic vs. foreign firms. Strategic Management Journal, 29, 383–400.

    Article  Google Scholar 

  • Li, J. J., Zhou, K. Z., & Shao, A. T. (2009). Competitive position, managerial ties, and profitability of foreign firms in China: An interactive perspective. Journal of International Business Studies, 40, 339–352.

    Article  Google Scholar 

  • Lin, N. (2001). Social capital: A theory of structure and action. New York: Cambridge University Press.

    Book  Google Scholar 

  • Mia, L., & Clarke, B. (1999). Market competition, management accounting systems and business unit performance. Management Accounting Research, 10, 137–158.

    Article  Google Scholar 

  • Miller, D., & Le Breton-Miller, I. (2005). Managing for the long run: Lessons in competitive advantage from great family businesses. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Miller, D., Lee, J., Chang, S., & Le Breton-Miller, I. (2009). Filling the institutional void: The social behavior and performance of family vs non-family technology firms in emerging markets. Journal of International Business Studies, 40, 802–817.

    Article  Google Scholar 

  • Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital and the organizational advantage. Academy of Management Review, 23, 242–266.

    Google Scholar 

  • Neter, J., Kutner, M. A., Nachtsheim, C. J., & Wasserman, W. (1996). Applied linear statistical models (4th ed.). Chicago, IL: Irwin.

    Google Scholar 

  • Ofori-Dankwa, J., & Julian, S. D. (2011). Utilizing an integrated multilens model: Explaining firm performance in double-void emerging economies. International Studies of Management & Organization, 41(2), 5–25.

    Article  Google Scholar 

  • Park, S. H., & Luo, Y. (2001). Guanxi and organizational dynamics: Organizational networking in Chinese firms. Strategic Management Journal, 22, 455–477.

    Article  Google Scholar 

  • Peng, M. W., & Luo, Y. (2000). Managerial ties and firm performance in a transition economy: The nature of a micro–macro link. Academy of Management Journal, 43, 486–501.

    Article  Google Scholar 

  • Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press.

    Google Scholar 

  • Portes, A. (1998). Social capital: Its origins and application to modern sociology. Annual Review of Sociology, 24, 12–37.

    Article  Google Scholar 

  • Portes, A., & Sensenbrenner, J. (1993). Embeddedness and immigration: Notes on the social determinants of economic action. American Journal of Sociology, 98, 1320–1350.

    Article  Google Scholar 

  • Robson, P. J. A., Haugh, H. M., & Obeng, B. A. (2009). Entrepreneurship and innovation in Ghana: Enterprising Africa. Small Business Economics, 32, 331–350.

    Article  Google Scholar 

  • Salm, S. J., & Falola, T. (2002). Culture and customs of Ghana. Westport, CT: Greenwood Press.

    Google Scholar 

  • Schulze, W. G., Lubatkin, M. H., Dino, R. N., & Buchholtz, A. (2001). Agency relationships in family firms: Theory and evidence. Organization Science, 12(1), 99–116.

    Article  Google Scholar 

  • Tokarczyk, J., Hansen, E., Green, M., & Down, J. (2007). A resource-based view and market orientation theory examination of the role of “familiness” in family business success. Family Business Review, 20(1), 17–31.

    Article  Google Scholar 

  • Wall, T. D., Michie, J., Patterson, M., Wood, S. J., Sheehan, M., Clegg, C. W., et al. (2004). On the validity of subjective measures of company performance. Personnel Psychology, 57, 95–118.

    Article  Google Scholar 

  • Westhead, P., & Cowling, M. (1998). Family firm research: The need for a methodological rethink. Entrepreneurship Theory and Practice, 23, 31–56.

    Google Scholar 

  • Wiklund, J., & Shepherd, D. (2003). Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-sized businesses. Strategic Management Journal, 24, 1307–1314.

    Article  Google Scholar 

  • Yli-Renko, H., Autio, E., & Sapienza, H. J. (2001). Social capital, knowledge acquisition, and knowledge exploitation in young technology-based firms. Strategic Management Journal, 22, 587–613.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. University of North Carolina at Greensboro, Greensboro, NC, USA

    Moses Acquaah

Authors
  1. Moses Acquaah
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. University of North Carolina, Greensboro, Greensboro, North Carolina, USA

    Moses Acquaah

Copyright information

© 2016 The Editor(s) (if applicable) and The Author(s)

About this chapter

Cite this chapter

Acquaah, M. (2016). Social Capital, Market Competition, and Productivity Growth in Family Businesses in Ghana. In: Acquaah, M. (eds) Family Businesses in Sub-Saharan Africa. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-36143-1_8

Download citation

Publish with us

Policies and ethics

Search

Navigation