Regional economic performance
and the differential prevalence of
corporate and family business
Zografia Bika
Norwich Business School, University of East Anglia, Norwich, UK, and
Peter Rosa
Business School, University of Edinburgh, Edinburgh, UK
Abstract
Purpose – Previous studies have largely examined interregional variations of small and medium-sized
enterprise (SME) rather than family firm concentrations. This paper aims to address this gap through an
analysis of firm type indicators across Europe from the Eurostat database, using social, economic and
demographic statistics at the NUTS 2 regional level to ascertain the nature, prevalence and regional contexts
of family firm concentrations.
Design/methodology/approach – Hierarchical clustering is performed to map the regional distribution
of the European family business.
Findings – Results show that the co-existence of family SMEs with large firms is negatively related to
regional economic performance, and this variation has implications for the understanding of the survival and
strategic behaviour of family firms.
Originality/value – The study promotes a new family business “in context” than “by context” point of view
and paves the way for further empirical work with interregional family business data at various spatial levels.
Keywords Family firms, Self-employment, Context, Regional development, Europe
Paper type Research paper
1. Introduction
Although the importance of family businesses to national economies has been recognised for
some time, their regional distribution is uneven and “little is known about where family firms
tend to appear” (Chang et al., 2008, p. 559). Using US state-level data, they illustrated how in
less prosperous regions, family firms may play a “role of disproportionate importance in
economic development” (Chang et al., 2008, p. 569). How external environmental conditions
affect the regional distribution of family firms, these authors argue, is thus, an important, but
overlooked field of study amongst family business researchers. They suggested further
research in other regional study contexts, not only different countries but also differences
between less aggregated regions. They also highlighted an important problem of causality,
whether economic development caused by external factors in less developed regions allows
more family firms to develop (because large non-family firms do not tend to locate in poor
This paper forms part of a special section “Family Entrepreneurship in Communities: Social Context
and the Creation of Social Value”, guest edited by James Cunningham and Claire Seaman.
The authors acknowledge support from the UK Economic and Social Research Council (ES/
S004656/1) and the ESPON (European Spatial Planning Observation Network) 2006 Programme
(Project 2.1.3).
JEC
16,2
238
Received 14 November 2019
Revised 26 April 2020
18 July 2020
Accepted 8 September 2020
Journal of Enterprising
Communities: People and Places in
the Global Economy
Vol. 16 No. 2, 2022
pp. 238-259
© Emerald Publishing Limited
1750-6204
DOI 10.1108/JEC-11-2019-0116
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