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.

Purpose – The purpose of this paper is to investigate the relationship between learning orientation (LO), entrepreneurial orientation (EO), and firm growth in small- and medium-sized firms (SMEs). The authors theoretically argue for a mediation effect of EO on the relationship between LO and growth. The study considered how companies that value learning enact actions to affect firm outcomes. This is particularly important for small firms that may not be capable of withstanding significant shocks in the marketplace. Design/methodology/approach – The research design employed the survey method for data gathering and resulted in 105 completed responses from CEOs/presidents of SMEs. To examine the construct validity of the measurement dimensions the authors used a multistage process. Additionally, the authors employed a competing models analytic design to determine the presence and strength of mediating effects of the EO construct. Findings – The findings empirically demonstrate the notion that firm cultural values embodied in a LO and translated into action behaviors by an EO is positively related to SME growth and adaptation. The research also supports the notion that learning is an important element in opportunity recognition insofar as opportunity recognition is entrepreneurial or reflecting an EO. SMEs that are open to learning may identify opportunities to exploit through an EO that facilitates growth. In the face of dynamic external environments and competitive conditions SMEs are well served by being more creative and entrepreneurial. Research limitations/implications – The design of the study is limited by single source, key respondents in SMEs, and has the potential for common method bias even though the authors tested for this effect successfully. Originality/value – The study contributes to the literature by examining how learning and an orientation toward entrepreneurial behavior affect the growth of firms. These findings will be of value to both scholars and entrepreneurs.

Many rural communities in the United States are economically depressed. However, while poor rural communities are geographically isolated and small, they are likely to be rich in social capital. We first argue that the nature of the social capital in such communities can either facilitate or constrain the development of business networks among entrepreneurs. We then explain the community-level conditions that might increase the probability of business network effectiveness. The primary opportunities that such networks can exploit and their potential spillover effects on economic development are also identified. Finally, we provide directions for research that can contribute to better public policy decisions.

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PurposeWhile advances in big data analytics (BDA) provide valuable business insights and immense business value, many firms find it difficult to gain advantage from their BDA initiatives. Noting the strategic role of firm-specific knowledge, we develop a framework examining the relation between firm specificity of BDA knowledge and competitive advantage. We also examine the dynamic evolution of BDA capabilities and the associated knowledge management strategies.Design/methodology/approachWe review the resource-based view (RBV), capabilities life cycles and absorptive capacity perspectives along with the literature on BDA competitive advantage. Identifying two key BDA factors, application customization and data proprietorship, we develop a BDA competitive advantage framework. We also investigate the absorptive capacities employed by firms to advance their BDA capabilities. We use anecdotal cases to support our theoretical arguments.FindingsWe propose that BDA solutions with vendor-based applications (noncustomized) and public data will not generate firm-specific knowledge and therefore not provide competitive advantage. In contrast, BDA solutions with custom applications and proprietary data will provide high-level firm-specific knowledge and potentially result in sustained competitive advantage. We further suggest the relevant absorptive capacities and the knowledge management strategies for BDA capability development.Practical implicationsOur framework provides managers with insights into how to develop and enhance firm-specific knowledge from their BDA solutions to gain competitive advantage.Originality/valueOur study offers a new BDA firm-specific knowledge framework for competitive advantage.

In this article, we introduce socioemotional selectivity theory (SEST) from psychology to the family business literature. Applying the theory to family businesses, we argue that a family business’s age influences whether it trusts family or professional business advisors most. Consistent with SEST, we find that business age relates to whether the family business emphasizes financial or socioemotional wealth more and that this wealth emphasis relates to whether family members or professional business advisors are trusted most. Based on these findings, we believe that SEST has much to offer to the study of family and nonfamily businesses.

Purpose -The purpose of this paper is to apply the theory of guided preparation to investigate the relative impact of outside counseling assistance and entrepreneurship courses on new venture creation and performance. Design/methodology/approach -To attain a sample of nascent entrepreneurs who had been impacted by entrepreneurship education and entrepreneurial counseling, 256 individuals who received counseling from the Pennsylvania Small Business Development Center in 1996 or 1998 were surveyed. The authors ran a logistic regression model using venture start-up as the categorical dependent variable to investigate whether entrepreneurial education and counseling had an influence on the creation of new ventures. To test whether entrepreneurial education or counseling had a long-term impact on the growth of new ventures, hierarchical regression analyses were run using employment in 2003 as the dependent variable. Various control variables were used for both sets of analyses. Findings -Findings indicate that counseling has a significant impact on venture performance but entrepreneurship courses do not. In contrast, entrepreneurship courses are related to venture creation while counseling is not. Research limitations/implications -Consistent with theory, the results suggest that counseling programs allow entrepreneurs to develop context-specific tacit knowledge about their ventures and are best delivered immediately prior to venture start-up. Entrepreneurship courses appear to indirectly influence new venture performance by increasing the odds of start up. Originality/value -This comparative test of the theory of guided preparation contributes to the understanding of the effects of education and counseling on the creation and long-term performance of new ventures, informing how the delivery of such programs can be improved.

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