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Family Social Capital as a Source of Competitive Advantage of Family Businesses Over Their Non-Family Counterparts

Summary/Abstract: In literature on family business management nepotism, standing for owners’ preference for hiring family members rather than unrelated job applicants, is considered to be problematic and a potential threat for the development of family firms. The goal of the paper is explaining the nature of family social capital and presenting the model of its creation. The Author tries to acknowledge that the influence of nepotism on business regardless of its size is positive, since it enables the business to benefit from the family social capital in the process of building competitive advantage over their non-family counterparts.

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