Social capital, knowledge sharing, and performance in family firms: the central role of absorptive capacity

Purpose This study evaluated the effects of social capital, knowledge sharing, and absorptive capacity on the performance of family firms. Design/methodology/approach Data collection was carried out using a questionnaire with Likert-type scales. The sample of 108 respondents was planned using G*Power software. Findings Seven hypotheses were tested, and five were supported. The results reveal that social capital and knowledge sharing do not directly impact the performance of these firms. However, these variables proved to be important antecedents of absorptive capacity, which, in turn, influenced organizational performance. Research limitations/implications Since the study does not represent the universe of family businesses, it is not generalizable. The scale used to measure performance, may not encompass all relevant indicators related to performance. Practical implications This study provides strategic guidelines for managers, reinforcing the importance of recognizing and managing social capital and encouraging knowledge sharing to strengthen absorptive capacity, thereby enhancing firm performance. Originality/value The research revealed that the relationship between social capital, knowledge sharing and absorptive capacity are more complex and indirect than usually assumed. While social capital and knowledge sharing do not directly contribute to performance, they are essential for the development of absorptive capacity, which positively affects the performance of family firms.