Abstract
PurposePlace attachment enables CEOs to leverage local resources, access information, and seize business opportunities, thereby enhancing firm performance. However, its influence may vary between family and non-family firms due to the family’s socioeconomic ties, nonfinancial goals and local community engagement. This study introduces the multidimensional construct of place attachment to business research, extending its theoretical foundations from environmental psychology to organizational studies.Design/methodology/approachDrawing from survey data of 528 French firms, this study uses a stepwise empirical strategy – combining exploratory factor analysis and partial least squares structural equation modeling (PLS–SEM) – to test and validate the construct of place attachment and examine its relationship with firm performance.FindingsPlace attachment emerges as a reflective second-order construct composed of five dimensions: place identity, place dependence, nature bonding, family bonding and friend bonding. Multigroup analysis reveals that, while the structure of place attachment is consistent across both family and non-family businesses, its impact on performance varies. The CEO’s place attachment is positively associated with economic, employee and environmental performance in non-family businesses but shows no significant relationship in family ones.Originality/valueBy integrating the construct of place attachment into the business domain, this study offers a novel framework for understanding how CEOs’ socioemotional connections to a given place shape firm-level outcomes, advancing the context-sensitive approach of management theory. This contextualization enriches family business literature by emphasizing place as a critical, yet overlooked, element of organizational behavior and strategic decision-making.