X hits on this document

PDF document

Social embedding as a solution to a control problem? Evidence from Vietnamese small business* - page 27 / 52





27 / 52

resources. The crucial – and unanswered – question is, however, the degree to which the

external points of contact are using their position for their own benefit, gaining respect and

resources from the focal business owners, versus for the benefit of their employers, choosing

businesses owned by family members because those businesses can be trusted versus for the

benefit of the focal business owners by favoring them with funds they would otherwise not


Besides having a family tie, we used the frequency of contact with the business

partners as a measure of social embedding. Contact was fairly frequent with almost a quarter

of the partners interacting on a daily basis; 43 percent had contact at least several times per

week. Contact with business partners who were immediate family members was

substantially more frequent than it was with partners who were not – over one half were in

daily contact with the business partners who were immediate family members while only 20

percent were in daily contact with business partners who were relatives, friends, or of no

special relation. Contrary to the expectations of the enforceable trust argument but consistent

with the insurance thesis, contact reinforces, rather than substitutes for, family ties.

Household and employees

There were a total of 1903 members of the households of the 447 sampled owners.

The average household size was 4.26. We collected data on up to eight members of each

owner’s household. Table Four shows detailed information about the 1855 members of the

nuclear family households, including the 447 business owners and their 390 spouses. As

would be expected, households were comprised of approximately equal numbers of males

and females. Ages ranged from one to 88 with a mean of 33. Just under 60 percent of the

household members worked in the business. Approximately half of the household members


Document info
Document views171
Page views171
Page last viewedThu Jan 19 17:24:59 UTC 2017