Empirical approach to the sequential relationships between generation, relational capital and performance in family wineries in Spain

This study aims to focus on relational social capital in family wineries. Relational social capital is influenced by the family nature of the business and is at the same time a key antecedent of winery performance. The aim is to analyse these relationships in the qualified denomination of origin (DOC) Rioja wine industry (Spain).

Using a final sample of 110 family wineries, a Baron and Kenny approach was performed to investigate the causal and mediating relationships between the generation in control, relational social capital and family winery performance.

Using a final sample of 110 family wineries, the study demonstrates that later generations show a higher level of relational social capital, that the positive relationship between relational social capital and performance is maintained in a family firm sample and that the generation in control sequentially influence on performance through its influence on relational social capital.

The main limitations are that empirical data were obtained only from DOC Rioja wine family businesses and a cross-sectional study was conducted.

This study provides policymakers and family managers responsible for succession with a better understanding of the effects of transferring the business to the next generations in terms of relational social capital and performance.

To the best of the knowledge, this is the first study to examine the sequential relationships between generation, relational social capital and performance in DOC Rioja family wineries. The context of the DOC Rioja wine industry is particularly noteworthy for two reasons. First, in this industry, family-controlled firms predominate. Second, the DOC Rioja wine industry is focussed on the small-to-medium context, which has conventionally provided a very good area for the development of social capital theory.