ABSTRACT
Family firms, by being major economic and social actors, contribute to regional employment, revenue, gross domestic product, and socially oriented activities worldwide. While scholars argue that family firms outperform non-family ones, little is known on how and why they contribute differently to regional development in comparison to non-family firms. This chapter addresses this knowledge gap by examining two interrelated questions: (1) Do family and non-family firms contribute differently to regional development? (2) What are the firms’ underlying strategic behaviours that explain the differentiated regional contributions? The empirical evidence is drawn from the quantitative analysis of survey data from 307 firms operating in Kenya. The findings show that the strategic behaviours (entrepreneurial orientation, decision-making process, and social network) are different in both types of firms. Strategic behavioural differences explain the extent to which firms contribute to regional development and the moderating role of family involvement. The chapter discusses the theoretical and practical implications of the findings.
