Nurturing Entrepreneurial Family Embeddedness: Practical Insights From a Territorial Perspective
Abstract
The pervasive presence of family businesses in numerous regions across the globe underscores the paramount importance of ensuring their sustained existence. What sets family businesses apart is their unique commitment to pursuing a vision that transcends generations. Yet, in their relentless pursuit of this vision, entrepreneurial families navigating the intricacies of running these businesses encounter a myriad of challenges in the territories where they are located, which have the potential to threaten their continuity.
This research examines the aspect of entrepreneurial families’ continuity from an external standpoint. 43 entrepreneurial families and local experts were interviewed in regions belonging to European countries. Namely, Baden-Württemberg (Germany), Scotland (United Kingdom), the Basque Country and Pays-de-la-Loire regions (in Spain and France, respectively). Offering a framework of 20 mechanisms, findings reveal that formal and informal institutional mechanisms impact entrepreneurial families differently according to the context (and thereby the institutional setting) where the entrepreneurial family is located.
Derived from our results, we offer actionable insights that can be directly applied by family businesses and industry practitioners. Our objective is to translate these findings into practical recommendations that enable entrepreneurial families to not only survive but thrive in the ever-evolving business landscape by relying on their unique territorial embeddedness.
Received: 1 May 2023
Accepted: 13 December 2023
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