Trust: The Social Virtues and the Creation of Prosperity

The 2008 crash has left all the established economic doctrines - equilibrium models, real business cycles, disequilibria models - in disarray. Part of the problem is due to Smith’s "veil of ignorance": individuals unknowingly pursue society’s interest and, as a result, have no clue as to the macroeconomic effects of their actions: witness the Keynes and Leontief multipliers, the concept of value added, fiat money, Engel’s law and technical progress, to name but a few of the macrofoundations of microeconomics. A good viewpoint to take bearings anew lies in comparing the post-Great Depression institutions with those emerging from Thatcher and Reagan’s economic policies: deregulation, exogenous vs. endoge- nous money, shadow banking vs. Volcker’s Rule. Very simply, the banks, whose lending determined deposits after Roosevelt, and were a public service became private enterprises whose deposits determine lending. These underlay the great moderation preceding 2006, and the subsequent crash.

The Economic Institutions of Capitalism

http://onemvweb.com/sources/sources/network_structure_social_capital.pdf

The Network Structure Of Social Capital

The resource-based view of the firm: Ten years after 1991

I. the origin of species by means of natural selection

Given that less than 10% of family owned businesses (FOBs) survive into the third generation, the issue of top executive succession has received a good deal of attention. Unfortunately, the literature on the topic is fragmented, as it deals with different parts of the elephant. This synthetic effort tries to put together the pieces to (1) derive a more encompassing model of what it takes for a succession to succeed, (2) determine the trends, consensus findings, as well as the gaps in our conceptual and empirical knowledge, and (3) suggest areas for further research.

Toward an Integrative Model of Effective FOB Succession

Lost in time: intergenerational succession, change, and failure in family business

Family business researchers have devoted substantial attention to comparing family firms with nonfamily firms. Many of these comparisons rely on dichotomous variables, which implicitly treat family firms as homogeneous entities. However, recent studies have started to use moderators and mediators as well as continuous measures of family involvement in recognition of the heterogeneity of family firms. The articles and commentaries in this special issue contribute to a better understanding of that heterogeneity by examining how vision and goals, as well as the discretion engendered by family control, influence the innovation, internationalization, succession, professionalization, and proactive stakeholder engagement of family enterprises.

https://papers.ssrn.com/sol3/Delivery.cfm/etap540.pdf?abstractid=2170616&mirid=3

Sources of Heterogeneity in Family Firms: An Introduction

The success of a new venture often depends on an entrepreneur's ability to establish a network of supportive relationships. The mobilization of financial resources is a particularly important entrepreneurial activity. Informal or `angel' investors represent a significant source of venture capital. However, the challenges of organizing and managing a supportive angel network are considerable. This paper reports the findings of a longitudinal study of the development and evolution of an angel financial network within a newly created firm and further refines how theories of social capital and structural holes might be usefully applied to an entrepreneurial context. Suggestions for further research are presented in the form of propositions.

Lloyd Steier

Papers

Toward an Integrative Model of Effective FOB Succession

Lost in time: intergenerational succession, change, and failure in family business

Sources of Heterogeneity in Family Firms: An Introduction

Entrepreneurship and the Evolution of Angel Financial Networks

Extending the Theoretical Horizons of Family Business Research