How place matters for innovation: a spotlight in public and private sectors

This thesis presents a unique examination of the interplay between social innovation, public policy, and organisational behaviour, with a specific focus on marginalised areas, such as the Italian Inner Areas and Peripheries (ESPON), which face persistent economic and social challenges. The research, presented in three interconnected chapters, explores the role of public and private institutions in fostering innovation. Specifically, the first two chapters concentrate on the public side, revealing the potential role of local authorities in social innovation initiatives. In contrast, the second chapter examines the efficiency of public service delivery in municipalities, a crucial factor in determining the quality of life in these areas. Delving into these two main topics, the first two chapters offer a profound understanding of the marginalized Italian areas and their current conditions. The final chapter, instead, shifts to the private side, applying the intelligent entity view (IEV) to predict organizational sustainability, particularly in family firms in peripheral contexts. The first chapter of this thesis examines the 'Strategia Aree Interne,' a policy launched in 2014 aimed at bridging disparities between urban and marginal areas. It explores how local authorities can serve as potential facilitators of the social innovation process through the application of AI- based methodologies to analyse interventions in forty-eight municipalities in the Apulian region. The findings highlight key municipal characteristics—such as demographics, governance quality, and gender diversity of administration—that influence the ability of local governments to foster social innovation and improve community well-being. The second chapter continues to focus on inner areas, but delving into the efficiency of their public service provision, which is a critical factor in citizens' quality of life and social inclusion. Given municipalities' financial and logistical constraints, particularly in less-developed areas, the analysis assesses how different contextual factors, such as being in the north rather than the south or being an inner area, affect the delivery of those services. Moreover, by looking deeply at marginalized Italian areas, the chapter unveils that Italian inner areas are not focusing on social services, which are the key factor in converting the demographic depopulation, but rather on local police and road conditions, crowding out their resources from the missions that can attract more people and boost their growth. The final chapter introduces the concept of the intelligent entity view (IEV) to explore organizational behaviour in family firms operating in peripheral areas. Using AI-driven analysis of extensive firm-year data, the study finds that organizational age and family firm status negatively correlate with sustainability, while local embeddedness acts as a mitigating factor, underlining the key role played by the place and its embeddedness. The chapter also proposes the "Intelligent Entity View" (IEV), framing organizations as entities shaped by memory (age) and perception (family firm status), which influence their ability to adapt to sustainability challenges. Collectively, these chapters highlight the practical implications of the research findings gathered over the last three years. They highlight the significant role of place in shaping public policy outcomes and their willingness to innovate, as well as reach service provision efficiency to boost local growth. Moreover, this study demonstrates how place matters for organizational behaviour and how it influences organizations towards sustainable practices. The thesis provides new insights into the role of local authorities in fostering sustainable change and highlights broader implications for family firms in peripheral areas. By integrating policy analysis, AI-driven methodologies, and organizational theory, this research provides a comprehensive framework for understanding the dynamics of Italy's Inner Areas and wide peripheries, as well as their potential for social and economic revitalization.