Internationalization of Family Businesses: Evidence from Northwest Ohio, U.S.A

Abstract

This study determines the extent of internationalization (i.e., global business attitudes and activities) of family businesses. A survey of 187 family businesses from northwest Ohio finds that family businesses do not regularly monitor the international marketplace or integrate global developments into domestic decisions. Although a small pool of businesses currently has ties with family businesses in foreign countries, many more would like to develop such ties. The study finds that if a family business does not get involved in foreign markets in the first and second generations, it is unlikely to do so in later generations. The majority of family businesses does not develop sources in foreign countries. The family businesses that do source from overseas markets do so mostly for cost and quality benefits. Approximately half of family businesses sold their products in foreign markets primarily via exporting and joint ventures.