Date of Conferral

4-7-2026

Degree

Ph.D.

School

Management

Advisor

Paul Frankenhauser

Abstract

Family-owned businesses in the United States encounter innovation and performance challenges that may contribute to unsustainable business practices. Owners and managers of family-owned small and medium-sized enterprises (SMEs) must understand these challenges, as failure to do so may indicate missed opportunities to leverage innovation through dimensions of social capital. The purpose of this quantitative, non-experimental, correlational study was to measure investment levels within social capital dimensions (structural, relational, and cognitive) that impact family-owned SMEs’ innovative efforts and performance capabilities in the West and Midwest regions of the United States. The theoretical foundation was social capital theory. There were four research themes in this study that included relationship strength, innovative development, growth prospects, and performance improvement. Participants, who comprised (N = 83) owners and managers of family-owned SMEs, completed the Performance Consequences of Social Capital in Online Communities Survey. Participants’ responses to innovation-related measures yielded a statistical score of 3.10, 95% CI [2.82, 3.37], t = 22.65, p < .001. Similarly, performance-related responses showed a statistically significant mean score of 3.02, 95% CI [2.77, 3.28], t = 23.79, p < .001. The study concluded with the null hypotheses as being partially rejected. Understanding this relationship can help family-owned SME leaders actively focus on increasing the social capital interaction effects to advance relationship quality. The implications for positive social change include the potential for policymakers to reveal how social capital investment can improve management decisions and create better business strategies for a sustainable advantage in family-owned firms.

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