A theoretical synthesis of the concept of family social capital within the framework of research into business sustainability in a transitional economy

Abstract

This paper offers a theoretical synthesis explaining why family firms in institutionally fragile environments often prove resilient - a pattern that contradicts standard economic theory, where the family is typically treated as a source of inefficiency. The objective is to build an integrative model of strategic decision-making that brings together the concept of Family Social Capital (FSC), insights from behavioural economics, and the new institutionalist framework. From this, a "socio-cognitive filter" model is proposed, showing that FSC is inherently ambivalent. In settings where formal institutions are weak - as the case of Moldova illustrates - FSC can act as a substitute for missing market mechanisms and reduce transaction costs. At the same time, it can lock inefficient practices in place, driven by loss aversion and the tendency toward system closure. The novelty lies in shifting away from a linear reading of FSC as purely a positive resource toward understanding it as a structural filter.