Abstract

Family owned businesses (FOBs) are the most dominant type of business organization. New technologies, pressure to have access to key resources, and markets make internationalization a crucial entrepreneurial strategy for FOBs survival. The literature remains inconclusive about the internationalization of FOBs. To address this research deficit, this paper analyses the relationship between entrepreneurial orientation (EO) and their internationalization of FOB and the moderating effect of family social capital (FSC). To answer this question, we built an original database of Spanish FOBs and tested our research model using Partial Least Squares regression. Our results showed a positive relationship of entrepreneurial orientation on the internationalization of FOBs and positive mediating effect of FSC on the internationalization of FOBs. This paper contributes to the existing literature by providing a detailed literature review on the internationalization of FBOs, EO and FSC. Empirical contributions extend the inconclusive body of research on the relationship between EO and internationalization of FOBs to include the moderating effect of FSC.

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