ABSTRACT
Family firms are a keystone in many countries as they provide employment opportunities and help the economy grow and prosper. As a result, family firms have been extensively studied; however, there are important aspects that still need to be better understood. One of these is the relationship between family firms and the socio-spatial context in which they act, that is, their local embeddedness. This study adds to existing research by placing family firms in their regional context and assessing whether and to what extent they are more locally embedded than their non-family counterparts. We measure local embeddedness through place tenure and distance to the local firm for key firm stakeholders. Our findings show that family firms rely greatly on more enduring and spatially proximate stakeholders and therefore show a stronger link with the socio-economic milieu in which they dwell. Relevant contributions to family business and regional studies, together with public policy implications, are discussed.
