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Family Firm Density and Likelihood of Failure: An Ecological Perspective

In: The Palgrave Handbook of Heterogeneity among Family Firms

Author

Listed:
  • 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
    Tecnológico de Monterrey, EGADE Business School)

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.

Suggested Citation

  • Marta Caccamo & Daniel Pittino & Francesco Chirico, 2019. "Family Firm Density and Likelihood of Failure: An Ecological Perspective," Springer Books, in: Esra Memili & Clay Dibrell (ed.), The Palgrave Handbook of Heterogeneity among Family Firms, chapter 30, pages 821-846, Springer.
    • Handle: RePEc:spr:sprchp:978-3-319-77676-7_30
    DOI: 10.1007/978-3-319-77676-7_30
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