Networks, Legacies and Continuity In Indian Family Businesses

Resumen

This study develops an extended theory of change explaining how family firms convert networks into performance. Drawing on an abductive, multiple-case qualitative design with eight Indian family businesses, and using Gioia-style coding, we distinguish what different ties accomplish, when their benefits turn negative, and how organizational scaffolds convert access into repeatable results. The analysis yields eight propositions that are consistent with the evidence: bonding/“as-if-family” density underwrites resilience but exhibits diminishing returns beyond an over-embeddedness threshold; non-kin diversity across industries and geographies predicts growth and co-creation; digital enablement amplifies the payoffs to bridging; governance and learning routines (partner ownership, review cadence, after-action notes) mediate the translation of diversity into scalable pipelines; and institutional bridging (banks, universities, government, associations) complements business networks, particularly in regulated or capital-intensive sectors. Three family-specific levers further refine the account: formalization of AIFB expedites funding decisions, reputation and community trust support price premiums and repeat business, and diaspora ties compress time-to-foreign-entry. We integrate these mechanisms into a four-stage network maturity ladder:S1 Kin-Centred Foundations, S2 Boundary Opening, S3 Structured Brokerage, S4 Orchestrated Partnerships—with observable progression triggers and leading indicators (deal velocity, referral yield, alliance revenue share, time-to-funds, price premium, time-to-foreign-entry). The contribution is a testable mid-range theory that specifies mechanisms and contingencies in family-firm networking while offering a practitioner-ready diagnostic and progression roadmap.