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New Insights into Non-Listed Family SMEs in Spain: Board Social Capital, Board Effectiveness, and Sustainable Performance

Valeriano Sanchez-Famoso (), Jorge-Humberto Mejia-Morelos () and Luis Cisneros ()
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Valeriano Sanchez-Famoso: Financial Economics I Department, University of the Basque Country UPV/EHU, 48008 Bilbao, Spain
Jorge-Humberto Mejia-Morelos: Department of Entrepreneurship and Innovation, HEC Montreal, Montreal, QC H3T 2A7, Canada
Luis Cisneros: Department of Entrepreneurship and Innovation, HEC Montreal, Montreal, QC H3T 2A7, Canada

Sustainability, 2020, vol. 12, issue 3, 1-1

Abstract: This study proposes an original structural model that analyzes the relationship between sustainable firm performance, and a board of directors’ external and internal social capital. Data collected in 232 non-listed and family-run small and medium-sized enterprises in Spain suggest that the effects of boards’ internal and external social capital on sustainable firm performance were partially transmitted through board effectiveness. However, external social capital influences board effectiveness and sustainable firm performance more than internal social capital. Moreover, interlocks only reinforce the relationship between a board’s external social capital and its effectiveness. Our research offers the following main contributions: (1) A proposed structural theoretical model, (2) a focus on both internal and external social capital, unlike previous literature that emphasized only one perspective, and (3) empirical evidence that supports literature on the interlocking interaction between a boards’ internal and external social capital.

Keywords: board internal social capital; board external social capital; board effectiveness; interlock; sustainable firm performance; family firm; corporate governance (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2020
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