Background: This paper focuses on nature and role of relationships in small hospitality firm in the Southern Italian context. Based on previous literature relationships in small firms are highly related to trust, common understanding and mutual benefits.    

Purpose: Aim of the paper is to explore how the role and nature of external stakeholders’ relationships creates perceived value with small family business by the theoretical framework developed by the authors.

Methodology: To answer the research question an empirical research was conducted and data was collected through semi-structured interviews using guidelines inspired by previous studiesThrough a content analysis of data collected and reports from the local government. Participants in the sample consisted of native Italians, living in the Metropolitan city of Naples. Participants were grouped in five categories along with the family firm itself, external stakeholder groups as business partners, competitors, residents and local government representative members. Total of 14 interviews were conducted. The Data was coded using the software Nvivo.

Results: The study suggest that relationships in the specific context of Hospitality in Southern Italy is based on personal level and have trust, respect and understanding as the fundamentals. The result also revealed that small family run B&B prefers family over non-family members. Tension and conflicts are then solved through understanding and trust.

Conclusion: In brief this research contributes to the family businesses and stakeholder literature in the specific context of Italian hospitality industry. The theoretical framework has been updated by the emerging findings from the qualitative analysis.