Drawing on the social capital literature, this study develops a new measure to assess the internal social capital using a sample of family firms and its effect on economic and noneconomic performance. We collected data from two independent samples to explore the importance of family businesses' internal social capital as assessed by a new instrumentthe internal social capital among family business (ISC-FB). Results from confirmatory factor analyses, convergent and discriminant validity assessments, and predictive and incremental validity offered support for the ISC-FB's construct validity. Finally, we cross-validated the hypothesized factor structure with a second sample of family firms. Implications and future research using this measure are proposed.

Goals or aspirations and their relationships to risk taking and performance are important issues in both psychology and strategic management. The concept of adaptive aspirations, as discussed in Cyert and March's Behavioral Theory of the Firm, has long been a topic of interest in both fields. Moreover, many studies in strategy have focused on risk and/or extreme performance. In the current paper, we build on earlier models of adaptive aspirations. We introduce into the models a new risk preference function that incorporates changes in risk preference at extremes of performance. Based on empirical studies and the managerial literature, we also introduce alternative strategies for setting reference groups. Simulations of the resulting models suggest important differences in outcomes from earlier studies and this invites further empirical investigation. These simulations also have significant implications for managerial goal setting. Copyright © 2011 John Wiley & Sons, Ltd.

Strategic tools are indispensible for business and competitive analysis. Yet we know very little about managers' internal logic as they put these tools into practical use. We situate our study in a business school context using action learning prior to the manifestation of practice to complement our understanding of practice. Using Personal Construct Theory and Repertory Grids, our mid-range theorizing showed that, contrary to current thinking about strategic tools, managers think in dualities (often paradoxically) and have a preference for multiple-tools-in-use, tools that provide different perspectives, peripheral vision, connected thinking, simultaneously help differentiate and integrate complex issues, and guide the thinking process. These findings are important for designing better tools and the nurturing of critical managerial competencies needed for a complicated world. Our study's focus also has wider implications for scholars as we see our own material evaluated by those who will put these lessons into practice.

Organizations learn and adapt their aspiration levels based on reference points (prior aspiration, prior performance, and prior performance of reference groups). The relative attention that organizations allocate to these reference points impacts organizational search and strategic decisions. However, very little research has explored this. Therefore, we build a recursive feedback model of learning from organizational experience that explains heterogeneity of attention allocation to the reference points in adaptive aspirations. In a sample of the German magazine industry , we find when early in their life cycle and as they or their parent company age, organizations tend to focus more on their own aspirations; however, when at the verge of bankruptcy, they increase their attention to competitors' performance.