Abstract

PurposeThe study aims to reveal the effects of transformational leadership on nonfamily employee international intrapreneurship with the mediating role of psychological empowerment.Design/methodology/approachThe study sample consists of 379 employees at 132 family export and import firms in Ho Chi Minh City of Vietnam. The data is analyzed by a partial least squares structural equation modeling (PLS-SEM).FindingsThe paper reveals that transformational leadership had a positive and significant influence on nonfamily employee international intrapreneurship. The effect of transformational leadership on international intrapreneurship is strongly mediated by psychological empowerment.Practical implicationsFamily firms would have to form the architecture and mechanisms for supporting the dedication of nonfamily international intrapreneurship actions with transformational leadership and psychological empowerment.Originality/valueThe paper grants the driving mechanism of the transformational leadership on nonfamily employee international intrapreneurship through the mediating role of employee psychological empowerment in the context of family businesses in an emerging market.

Highlights

  • Family-owned companies blend and steady conflicting forces, facing pressures between the aspire to protect the core values of family, control power and tradition by staying grounded in the local market and the demand to explore and exploit the benefits of global market expansion (Arregle et al, 2017; Bird and Wennberg, 2014; Gomez-Mejıa et al, 2010)

  • We investigate the relationship between transformational leadership and nonfamily employee psychological empowerment in family-owned firms

  • partial least squares structural equation modeling (PLS-SEM) Algorithm technique is chosen for analyzing the data and proposed hypotheses using SmartPLS 3 software (Ringle et al, 2015)

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Summary

Introduction

Family-owned companies blend and steady conflicting forces, facing pressures between the aspire to protect the core values of family, control power and tradition by staying grounded in the local market and the demand to explore and exploit the benefits of global market expansion (Arregle et al, 2017; Bird and Wennberg, 2014; Gomez-Mejıa et al, 2010) Firms endure when they possess a corporate culture that balances the continuity of core concepts and necessary change (Collins and Porras, 1994). The amount of insignificant quantity of scholarly work devoted to the topics of corporate entrepreneurial activities in family-owned firms and disregarding the micro-foundations and the role of nonfamily members (Glinyanova et al, 2021) This exclusive phenomenon demands a specific and contextualized reassessment of established theories that integrate international corporate entrepreneurship in the context of family-owned firms and international business, which might help understand the differences of family-owned firms in approaching international corporate entrepreneurship

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