Bridging locality and internationalization – A research agenda on the sustainable development of family firms

Abstract

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. Unlike large multinationals that have often lost their roots, family firms manifest an active interest in maintaining their local roots and traditions. Moreover, increasing concerns with sustainable development call for continuity through sustainability aimed at improving local and global socioeconomic conditions. This editorial of the special issue on 'Locality and Internationalization of Family Firms' discusses this tension that family firms face and how they can build bridges between communities increasingly drifting apart. By bridging local and global environments, family firms can contribute to the sustainable development of society. We present a research agenda addressing this particular bridging function of family firms and propose several avenues for future research.

Corporate Social Responsibility in Family Firms: Status and Future Directions of a Research Field

“…Researchers must also look at moderating contextual factors outside the family firm system to understand the heterogeneous findings better. For example, when CSR is essential for stakeholders (e.g., valued by customers, society, or industry regulations), the family firm may be more incentivized to invest its resources in CSR activities (e.g., Baù et al, 2021 ; Chen & Liu, 2022 ; Samara et al, 2018 ). In CSR research, such factors are often understood as directly affecting CSR activities (Aguinis & Glavas, 2012 ).…”

“…Middle-aged family firms with high family identity provide more environmental disclosure, for example to protect and enhance the reputation and image of the business, whereas old family firms with high family identity provide less environmental disclosure Bammens and Hünermund ( 2020 ) Family ownership (mediated by company reputation motive); family values and transgenerational intention (moderator family ownership-reputation) – Institutional theory Quantitative 4009 firms (cross-sectional) S M L Germany Family ownership has a positive effect on the introduction of eco-innovations, partly due to the focus on the company reputation (mediator). This effect is highest when the family has transgenerational intentions Baù et al ( 2021 ) Internationalization; local roots – – Conceptual – – – This editorial of the special issue on ‘Locality and Internationalization of Family Firms’ discusses how family firms can build bridges between communities increasingly drifting apart. By bridging local and global environments, family firms can contribute to the sustainable development of the society Bendell ( 2022 family ownership and management; governmental pressure; industry pressure – Stakeholder theory Quantitative 121 firms – USA The study’s results demonstrate that family firms who were highly engaged with their peers were significantly less influenced by the possibility of negative peer reputation repercussions when making environmental innovation investment decisions compared with other firms Bennedsen et al ( 2019 ) Family management – – Quantitative 2600 firms (5 year panel) S M L Denmark Company characteristics, such as its policy/environment and incentives and corporate culture have a strong influence on employee absenteeism.…”

Are family owners and managers good stewards in global crises? Evidence from stock market reactions to Covid-19

“…Private family firms differ from public family firms in that the owner family and its goals are more prominent. Moreover, they are not subject to any capital market regulation and are typically closer to their main stakeholders and their local community ( Baù et al, 2021 , Basco, 2015 ). With regard to the latter it would be interesting to investigate how the local roots and regional embeddedness of private family firms shape their stewardship behavior towards their home region in a situation of a global crisis.…”

Hidden champions as a determinant of regional development: An analysis of german districts

“…Although several quantitative studies examine the R&D and innovation strategies of HCs (e. g. Herstatt et al 2017; Rammer/Spielkamp 2015; Vonnahme/Lang 2019), qualitative and mixed-methods research could shed more light on how these strategies are shaped by regional characteristics and vice versa. Thereby, qualitative research designs could be used to better understand the role of HCs in regional innovation systems and knowledge networks (e. g. Cooke 2001; Fritsch/Slavtchev 2011) and precisely address the question of how and why HCs deliver added value in the region and how they differ from other (family) firms in their degree of locality and regional embeddedness (Baù et al 2021;Stough et al 2015). Qualitative research approaches are of particular relevance in the field of economic geography because, unlike quantitative analyses, they reduce concerns about measurement, provide important contextual information, and help develop compelling substantive arguments (Barthelt/Li 2020).…”