The interface of the organization and its industry constitutes a vital space for development. Conducting a systematic literature review, we confirm that management research has paid rather little attention to exploring the relationship between the industry context and family business management to date (see also Le Breton Miller & Miller, 2015). Despite this lack of research, many scholars and practitioners alike could name numerous family businesses that hold world class in their niches. Given the pace of environmental changes, there is a clear need to better understand the interface of family business and industry over time. Building on our findings from a longitudinal, in-depth case study of a 4th generation family business and its niche of high-quality Scandinavian Design furniture, we propose a multi-level model of co-evolution that comprises not only the micro- and macro-levels of family business and its industry, but also the meso-level of inter-actor cooperation in its market niche.