Roots to grow: Family firms and local embeddedness in rural and urban contexts

Massimo Baù, Francesco Chirico*, Daniel Pittino, Mikaela Backman, Johan Klaesson

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

52 Citations (Scopus)


The present study analyzes the nexus among business growth, ownership structure, and local embeddedness—that is, the involvement of economic actors in a geographically bound social structure—in rural and urban contexts. This work combines regional economics with studies on family business and firm growth and uses a coarsened matched sample of privately held Swedish firms. The findings indicate that family firms benefit more than nonfamily firms from local embeddedness and as such they achieve higher levels of growth and that this effect is more pronounced in rural areas. Research implications are shared in the Conclusion section.

Original languageEnglish
Pages (from-to)360-385
Number of pages26
JournalEntrepreneurship: Theory and Practice
Issue number2
Publication statusPublished - 1 Mar 2019
Externally publishedYes


  • Business growth
  • Family firms
  • Local embeddedness
  • Urban-rural contexts


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