Place-based approach and family firms: the Tatula programme in Lithuania

ENThis chapter aims to explore the role that local family firms may play when place-based approach initiatives are implemented in lagging regions. We present, explore, and analyse the case study of the Tatula Programme in Lithuania. We can summarise our results as three important characteristics of family firms for place-based approach. First, the entrepreneurial orientation of family firms leverages place-based programme actions by using existing local knowledge to reconfigure resources in different and innovative ways. Second, the long-lasting embeddedness of family firms, characterised by their social capital, embraces other socioeconomic actors in their initiatives to unfold a participative developmental approach. Finally, the connection between family firms and their territory creates a sense of belonging to generate the intention to stay in the region, favouring local action in the long term. This chapter contributes to both theory and practices. We expect that this exploratory case study will open the door to better understanding the micro-foundations of place-based approach as a lens to promote regional socioeconomic development. Additionally, the case study that we present highlights practical contributions by illustrating the importance of encouraging local actors—in this case, family firms—to create long-lasting conditions that boost economic dynamism.