Family Business and Regional Development This book explores the relationship between families, frms, and regions and the extent to which these relationships contribute to regional economic and social development. Although family business participation in economic activities has been a common phenomenon since pre-industrial societies, and its importance has evolved throughout time and across spatial contexts, the book suggests that these factors have often been neglected in family business and regional studies. Taking this research gap into account, the book aims to deepen our understanding of the role family frms play in the regional economy. In par- ticular, it explores two seldom studied questions. Firstly, what role do family frms play in regional development? Secondly, how do different spatial re- gional contexts shape family frm operations and performance? Family Business and Regional Development presents a model of “spatial familiness” and uses themes such as productivity, networks and competi- tiveness to shed new light on family businesses. Moreover, it approaches the juxtaposition between family business and regional studies to encourage the cross-fertilisation of ideas, theories, and research methods between the two felds. Bringing together leading experts in entrepreneurship, regional econom- ics, and economic geography, this book will be a valuable reading for ad- vanced students, researchers and policymakers interested in family frms, regional studies and economic geography. Rodrigo Basco is Associate Professor and Sheikh Saoud bin Khalid bin Khalid Al-Qassimi Chair in Family Business at the American University of Sharjah, United Arab Emirates. Roger Stough was the Northern Virginia Endowed Chair and Professor of Public Policy at George Mason University, USA. Lech Suwala is Professor of Urban and Regional Economics at the Techni- cal University of Berlin, Germany. Routledge Advances in Regional Economics, Science and Policy Economic Clusters and Globalization Diversity and Resilience Edited by Francisco Puig and Berrbizne Urzelai Transnational Regions in Historical Perspective Edited by Marten Boon, Hein A.M. Klemann and Ben Wubs Urban Development in China under the Institution of Land Rights Jieming Zhu The Geography of Mobility, Wellbeing and Development in China Understanding Transformations Through Big Data Edited by Wenjie Wu and Yiming Wang Traveling Expertise and Regional Development Andreas Öjehag-Pettersson and Tomas Mitander Governing Cities Asia’s Urban Transformation Edited by Kris Hartley, Glen Kuecker, Michael Waschak, Jun Jie Woo, and Charles Chao Rong Phua Mental Health and Wellbeing in Rural Regions International Perspectives Edited by Sarah-Anne Munoz and Steve F. Bain Family Business and Regional Development Edited by Rodrigo Basco, Roger Stough and Lech Suwala For more information about this series, please visit: www.routledge.com/ series/RAIRESP Family Business and Regional Development Edited by Rodrigo Basco, Roger Stough and Lech Suwala LONDON AND NEW YORK First published 2021 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 52 Vanderbilt Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2021 selection and editorial matter, Rodrigo Basco, Roger Stough and Lech Suwala; individual chapters, the contributors The right of Rodrigo Basco, Roger Stough and Lech Suwala to be identifed as the authors of the editorial material, and of the authors for their individual chapters, has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. The Open Access version of this book, available at www.taylorfrancis.com, has been made available under a Creative Commons Attribution 4.0 license. The authors acknowledge the generous support by the Open Access Publication Fund of Technische Universität Berlin. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Basco, Rodrigo, editor. | Stough, Roger, editor. | Suwala, Lech, editor. Title: Family business and regional development / edited by Rodrigo Basco, Roger Stough and Lech Suwala. Description: 1 Edition. | NY: Routledge, 2020. | Series: Routledge advances in regional economics, science and policy | Includes bibliographical references and index. Identifiers: LCCN 2020027916 Subjects: LCSH: Family-owned business enterprises. | Regional economics. | Regional planning. Classification: LCC HD62.25 .F3726 2020 | DDC 338.9—dc23 LC record available at https://lccn.loc.gov/2020027916 ISBN: 978-0-367-17861-1 (hbk) ISBN: 978-0-429-05809-7 (ebk) Typeset in Times New Roman by codeMantra Contents List of fgures viii List of maps x List of tables xi List of boxes xiii List of contributors xiv List of abbreviations xx Introduction 1 RODRIGO BASCO, ROGER STOUGH AND LECH SUWALA PART I Family business and regions 5 1 Spatial familiness and family spatialities—searching for fertile ground between family business and regional studies 7 RODRIGO BASCO AND LECH SUWALA 2 A regional perspective of family frms: evidence from Europe 33 RODRIGO BASCO AND FERNANDA RICOTTA PART II Micro-foundation channels 63 3 Urbanization economies, proximity dimensions and productivity: a family frm perspective 65 RODRIGO BASCO, STEFANO AMATO, SILVIA GÓMEZ-ANSÓN AND ANDREA CALABRÒ 4 Family co-occurrence and frm productivity 83 EVANS KORANG ADJEI AND RIKARD ERIKSSON vi Contents 5 Developing digital innovation in family frms: evidence from Italian industrial districts 103 STEFANO AMATO, ALESSIA PATUELLI AND NICOLA LATTANZI PART III Meso-Foundation channels 123 6 Family frms and their regional ties: a bond made for the future? 125 REGINA LENZ 7 Are family frms more locally embedded than non-family frms? fndings from the fnnish context 140 STEFANO AMATO, MIKAELA BACKMAN AND JUHANA PELTONEN 8 Family frms and corporate responsibility in peripheral regions 157 MARTIN GRAFFENBERGER AND FRANZISKA GÖRMAR PART IV Evidence around the world 175 9 Comparing family and non-family frms’ strategic effects on regional development: evidence from Kenya 177 WILLIAM MURITHI AND KASSA WOLDESENBET BETA 10 Family frms and regional entrepreneurship: the European evidence 193 RICCARDO CAPPELLI, MARCO CUCCULELLI AND VALENTINA PERUZZI 11 Family frms and regional development: evidence from China 210 XINRUI ZHANG, JUNSHENG DOU AND HANQING “CHEVY” FANG PART V A policymaker perspective 235 12 Family frms and corporate spatial responsibilities in Germany: implication for urban and regional planning and management 237 HANS-HERMANN ALBERS AND LECH SUWALA Contents vii 13 Place-based approach and family frms: the Tatula Programme in Lithuania 256 RODRIG O BASCO AN D INGA BA RTKEVIČI Ū T Ė Index 273 Figures 1.1 Spatial family management model 16 1.2 Regional familiness model 20 2.1 Regional share of family frms (under/upper median) 36 2.2 Share of family frms by frm size, country, and region 39 2.3 Share of family frms by frm age, country, and region 40 2.4 Relationship between share of family frms and region size 42 2.5 Relationship between share of family frms and EQI 43 2.6 Relationship between share of family frms and TFP by region 44 2.7 Relationship between regional share of family frms and regional exporters 45 2.8 Relationship between regional share of family frms and regional innovators 46 2.9 Regional share of family frms combining innovators and exporters 47 2.10 Quality of Italian regional institutions and share of family frms 54 2.11 Share of family frms and labour productivity across Italian regions 55 2.12 Share of family frms and regional exports across Italian regions 55 2.13 Share of family frms and regional innovation across Italian regions 56 2.14 Share of family frm innovators and family frm exporters across Italian regions 56 3.1 Labour productivity of family versus non-family frms across municipalities 76 4.1 Fixed-effects estimates indicating the relationship between family co-occurrence (a: without a relationship with the frm owner; b: with a relationship with the frm owner) and average labour productivity 94 4.2 Fixed-effects estimates showing the moderating effects of family co- occurrence (a: without a relationship to the frm owner; b: with a relationship with the frm owner) on the relationship between regional size and specialization and average labour productivity 95 Figures ix 4.3 Fixed-effects estimates showing the moderating effects of family co-o ccurrence on relationship between skill variety (formal skills) and average labour productivity 96 8.1 Roofng ceremony of community centre in Bad Berleburg 168 8.2 Motives for CLRR activities 169 11.1 The number of private frm registration in China by regions 214 11.2 Publicly listed family frms in China and regional development 214 11.3 Average family ownership of Chinese listed frms 215 11.4 The proportion of Chinese entrepreneurs with bachelor’s degree or above 216 11.5 Proportion of female entrepreneurs in China 216 11.6 Political background of entrepreneurs 217 11.7 The governance institutions of Chinese private frms 218 11.8 Family members in top management teams, supervisor boards and director boards by regions 218 11.9 R&D investment intensity of listed family frms in China by regions 219 11.10 Average patens and invention patents of listed