Nurturing Entrepreneurial Family Embeddedness: Practical Insights From a Territorial Perspective

Paula Martínez-Sanchis

doi:10.18543/bee.2745

Paula Martínez-Sanchis TUM School of Management, Technical University of Munich https://orcid.org/0000-0001-7932-4566

Keywords: Entrepreneurial families, territorial embeddedness, institutional setting, institutional mechanisms

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

Author Biography

Paula Martínez-Sanchis, TUM School of Management, Technical University of Munich

Postdoctoral researcher at the Technical University of Munich (Germany). Passionate about family business research, she holds a PhD from Deusto Business School (University of Deusto, Spain), a Master’s degree in Business Strategy and a Bachelor’s degree in International Business from the University of Valencia (Spain). Currently, her main research interests revolve around the challenges posed by digital technologies to family businesses. She has participated in competitively funded research projects and international conferences, publishing several scientific articles as a result. Recently (December 2022), she was awarded for the best doctoral thesis on Basque economics (Alberto Alberdi Award).

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