Abstract

In this study, we investigate the differential power of political capital and family social capital in determining family firms’ performance implications of a natural disaster. Political and social capital coexist in environments characterized by the presence of closely-held firms. However, they have been considered separately in explaining how firms leverage relations to improve their performance. Thus, we still don’t know if, and under what conditions, political and family social capital differently affect performance, especially in the aftermath of exogenous shocks.

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