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Family business, community embeddedness, and civic wealth creation

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  • Lumpkin, G.T.
  • Bacq, Sophie

Abstract

Family businesses exhibit a strong commitment to address societal challenges and social ills with direct consequences for the neighborhoods, cities, and regions where the businesses are located. In this article, we link these community-minded activities to the idea of civic wealth creation (CWC), a term that captures the local flavor of many positive social change efforts being launched to improve and empower communities. Because of their high degree of community embeddedness (CE), that is, the extent to which an organization is associated with, relies on, and perceives a commitment to its community, we argue that family businesses are especially effective civic wealth creators. To illustrate, we present two examples of the CE–CWC relationship—Bush Brothers & Company in the U.S., and a cluster of Mittelstand companies in Attendorn, Germany. We discuss the practical implications of CE for family businesses and address several future research avenues for investigating CE and the CWC of family firms.

Suggested Citation

  • Lumpkin, G.T. & Bacq, Sophie, 2022. "Family business, community embeddedness, and civic wealth creation," Journal of Family Business Strategy, Elsevier, vol. 13(2).
    • Handle: RePEc:eee:fambus:v:13:y:2022:i:2:s1877858521000504
    DOI: 10.1016/j.jfbs.2021.100469
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    References listed on IDEAS

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    Cited by:

    1. Michela Floris & Angela Dettori, 2024. "“With our feet on the ground and our minds free to fly”: multiple embeddedness and entrepreneurial orientation in small and medium-sized family businesses," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(2), pages 565-595, June.
    2. Alice Rossi & Tom Vanacker & Silvio Vismara, 2023. "Unsuccessful Equity Crowdfunding Offerings and the Persistence in Equity Fundraising of Family Business Start-Ups," Entrepreneurship Theory and Practice, , vol. 47(4), pages 1327-1355, July.
    3. Frank Lambrechts & Jolien Huybrechts & Alfredo Massis & Erik E. Lehmann, 2023. "The “open family firm”: openness as boundary work in family enterprises," Small Business Economics, Springer, vol. 60(4), pages 1307-1322, April.
    4. Sofia Brunelli & Salvatore Sciascia & Massimo Baù, 2024. "Nonfinancial reporting in family firms: A systematic review and agenda for future research," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 162-179, February.

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