Globalization, digital technologies, societal and environmental concerns influence the way family firms operate locally and internationally. Family firms are often torn between their local and global environments, simultaneously visible and embedded in their local environment while marketing their products and services abroad.
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This paper explores the interaction and interdependence between family firms and sparsely populated regions. Interactivity underlines the dynamics of the setting and how it changes based on activities between the firm and the context, whereas interdependence refers to how the family firm and the region become mutually reliant on one another.
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Our study investigates whether the quality of regional institutions influences firms’ likelihood of being a family firm. We explore our conjecture using the EU-EFIGE/Bruegel-UniCredit dataset, which provides comparable cross-country data on manufacturing firms in seven European countries.
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