Family Firm Density and Likelihood of Failure: An Ecological Perspective

Marta Caccamo (), Daniel Pittino () and Francesco Chirico ()
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Marta Caccamo: Center for Family Enterprise and Ownership—CeFEO
Daniel Pittino: Center for Family Enterprise and Ownership—CeFEO
Francesco Chirico: Center for Family Enterprise and Ownership—CeFEO

Chapter 30 in The Palgrave Handbook of Heterogeneity among Family Firms, 2019, pp 821-846 from Springer

Abstract: Abstract This chapter aims at establishing a link between family business research and regional science. Drawing from the density dependence model from organizational ecology and embeddedness theory, we develop four testable propositions to inquire about the effect of the emergence of family firms’ agglomerations in the territory on firms’ survival. We theorize that increased family firm density reduces the likelihood of firm failure and this effect is (a) higher for family firms than for non-family firms, (b) lower in urban than in rural areas, and (c) higher in fine-grained variable environments than in stable environments. Contributions and future research implications are detailed in the concluding section.

Keywords: Density dependence; Embeddedness; Failure; Family business (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-319-77676-7_30

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DOI: 10.1007/978-3-319-77676-7_30

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