Rural context favouring family business and urban context promoting non-family business in Egypt, Morocco and Turkey

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Research Article

Publication Title

European Journal of International Management

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Family business has recently gained research attention, particularly in specific contexts. We extend the existing literature by exploring the urban and rural context of family business, focusing on a sample of 3935 family and non-family businesses in Egypt, Morocco and Turkey. Family businesses are known to be more self-reliant than non-family businesses. Therefore, we expect them to thrive in a rural environment, where institutions are less elaborate, resources fewer, and networks sparser than in urban eco-systems, which are expected to be better for non-family businesses. We find that businesses governed by families are more frequently seen in rural areas than cities and those governed by non-family more often in urban than rural areas - and this pattern is remarkably similar in the three countries studied here, suggesting that it may well be generalisable globally.

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