ABSTRACT
This chapter aims to explore the micro-foundation of the place-based approach by focusing on family firms when developing and implementing initiatives to boost local socioeconomic development in lagging regions. The practical experience of a place-based programme called ‘Tatula Programme’ in Lithuania is used for this purpose. We find that, owing to the local embeddedness of family members, family firms leverage the place-based programme actions in several ways. First, by using existing local knowledge to reconfigure resources in different and innovative ways. Second, by developing local social capital to embrace other economic and social actors in their initiatives. Finally, by creating a sense of belonging to generate the intention to stay in the region. We discuss theoretical and practical implications.
