Internationalization Of Family Businesses Research Articles

International entrepreneurial culture of born global and non-born global family firms: a configurational approach

PurposeDelving into family business heterogeneity, this study applies fuzzy-set qualitative comparative analyses (fsQCA) to explain overlooked differences in the international performance of born global family firms (BGFFs) and non-born global family firms (n-BGFFs); through the lens of assemblage theory of family business internationalization, the study develops distinctive configurations of international entrepreneurial culture (IEC) for BGFFs and n-BGFFs.Design/methodology/approachThis study compares the theoretical tenets of IEC among 167 BGFFs versus 192 n-BGFFs in Malaysia using fsQCA – a configurational method. The study further deploys necessity analysis of fsQCA (NCA) to determine the necessity conditions within the identified configurations.FindingsBGFFs manifest elevated levels of international entrepreneurial orientation, international motivation and international non-competitor network orientation. In contrast, n-BGFFs rely on international markets, learning and competitor network orientations to secure international performance. Furthermore, necessary condition analysis (NCA) reveals that international entrepreneurial orientation and international motivation are the necessity conditions for BGFFs. In contrast, international market, learning and competitor network orientation are all required for n-BGFFs’ international performance.Originality/valueThis study is timely and contributes to advancing the international business theory of family firm internationalization. It also offers better theorizing for family firms’ heterogeneity, locating the source of that heterogeneity not just in the speed of internationalization but also in the composition of their different IECs.

Origin matters: Privatization of state‐owned enterprises and family business internationalization

AbstractThe impact of a firm's origins on its strategic decision‐making has attracted scholarly attention in recent years. Focusing on firms' origins, this paper explores the relationship between the privatization of state‐owned enterprises (SOEs) and family business internationalization. Based on data from listed family businesses in China from 2003 to 2022, we find that compared to entrepreneurial family businesses, restructured family businesses have a lower internationalization degree. Moreover, high trade policy uncertainty strengthens the negative relationship between the privatization of SOEs and family business internationalization, while high family involvement plays a weakening role. Several robustness tests later, the findings remain valid. This study introduces the firm's origin as a vital determinant, which may contribute to the prior studies on family business internationalization. Besides, this paper complements research on the economic consequences of the privatization of SOEs in China. Finally, this paper may help Chinese family businesses actively participate in the international cycle to achieve competitive advantage and high‐quality development.

Institutional effects on family business internationalization: a systematic review

Abstract Family firms play a vital role in the global business landscape, significantly impacting their home countries GDP. These firms diverge from non-family counterparts in their internationalization strategies, yet they stand to gain substantial benefits from international expansion. Beyond economic considerations, family resources and values introduce non-economic factors that challenge traditional economic theories. This study leverages an institutional approach to illuminate the multifaceted influences shaping family firms’ internationalization, encompassing positive and adverse dynamics. The integration of institutional theory marks a recent shift in understanding family firm internationalization, encompassing institutional and economic geography perspectives. To foster discourse and guide future research, this paper systematically reviews peer-reviewed articles covering over a decade, from 2010 to 2023. It identifies formal and informal institutional elements, alongside economic geography factors, that either facilitate or impede family firms’ internationalization. This review underscores existing knowledge gaps at the nexus of institutional theory, economic geography, internationalization, and family business studies. Notably, the systematic literature review uncovered a limited corpus of only 41 articles, indicating the need for more research exploring the synergy between economic geography and institutional factors in the context of diverse internationalization strategies. Furthermore, the review highlights the underexplored terrain within social institutions and economic geography, revealing a notable gap in the extant research.

International entrepreneurship and the development of competencies in family businesses: Case study

Purpose: Explain how the main competencies developed by a family business in an emerging market help to reach international markets. Methodology/approach: A qualitative research was conducted with family members who participated in the expansion process, showing that the members' family organization is essential to develop each of the competencies during the internationalization process. Originality/Relevance: Theoretical and managerial contributions are presented, as it adds new discoveries to the international business literature, focusing on companies from emerging markets that internationalize to developed markets. Key findings: The results show that the internationalization of the business to Portugal occurred by the partners, who tend to centralize the business management decision-making processes. The knowledge acquired in Brazil improved the internationalization process and the establishment of the brand in Portugal. Theoretical/methodological contributions: The study contributes to research on internationalization of family businesses, demonstrating that the creation of competencies oriented to entrepreneurial emerging markets is fundamental for the strategic development of this type of company in its process of internationalization. The research presents an empirical report of international entrepreneurship from qualitative emerging markets.

Internationalization of family business and innovation investment: An executive incentive-based perspective

We selected a sample of listed family business in China from 2017 to 2022 to explore the relationship between the internationalized operations of family businesses and corporate innovation investment. It is found that the internationalized operation of family businesses has a positive impact on innovation investment; executive compensation incentives and executive equity incentives positively regulate the impact of the internationalized operation on innovation investment of family businesses.

Exploring the Impact of Socioemotional Wealth on Moroccan Family Firms’ Global Expansion

This study delves into the pivotal role of socioemotional wealth (SEW) in shaping the global expansion strategies of Moroccan family businesses. By employing a quantitative approach, we scrutinize the intricate dynamics between SEW and internationalization decisions, focusing on control preferences during global ventures. Our investigation encompasses a comparative case study analysis of 51 Moroccan family enterprises, enriched by insights from semi-structured interviews and organizational data. Preliminary findings underscore the necessity of integrating SEW considerations in strategic planning for successful internationalization, highlighting a nuanced understanding of control mechanisms in family firms’ cross-border operations. This research contributes to the broader discourse on family business internationalization, offering a novel perspective on the interplay between emotional wealth and global market engagement.

The Role of Family Ownership on Internationalization Strategies

The present study examines the impact of family ownership and control on the internationalization strategies of Portuguese manufacturing firms. The study contributes to the existing literature by providing evidence that different forms of international market presence are asymmetrically influenced by family control and by underscoring the importance of innovative strategies. The analysis includes a sample of 25,533 firms observed from 2018 to 2021. Econometric models address the role of ownership in alternative internationalization endeavors, demonstrating that these firms differ from their non-family counterparts. By comparing the export propensity, intensity, and reach of family businesses to non-family businesses, the research sheds light on the challenges faced by family-owned firms and the significance of structural characteristics such as technological regimes and regional competitive advantages. The findings emphasize the negative impact of family presence on internationalization while highlighting the importance of innovation and ecosystem support. Additionally, the study contributes to the empirical refinement of firm classification by proposing a more reliable segmentation method. It also presents alternative econometric methods to appraise internationalization strategies better. Future research directions are suggested, particularly regarding the use of additional information related to innovation and human capital, offering insights for enhancing the global engagement of family businesses in global markets. This research provides valuable empirical evidence and practical implications for policymakers and practitioners seeking to support the required actions to promote the growth and internationalization of family businesses in the context of the Portuguese manufacturing industry.

The business family as an institutional arbitrageur: Internationalization across institutional contexts

Much research on family business internationalization centers on the firm but is inattentive to the family behind the firm. We examine how business families internationalize from unstable and fragile institutions. Based on a qualitative multi-case study, we theorize business families as institutional arbitrageurs who facilitate international transactions between incompatible institutional contexts to create and preserve value in international markets while adapting to the unstable and fragile home institutional environment. Our findings suggest a three-stage internationalization process representing a cumulative and varied pattern of arbitrage practices at the level of the enterprise, extended family, and individual family members. Thus, we theorize the unique aspects of the family as a hypermobile international structure with international interests, relationships, and presence. Our findings also highlight the role of individual family members during internationalization. Our study contributes to the literature on business family internationalization and institutional arbitrage.

Reasons for internationalisation of family business

Many businesses opt to expand internationally. The reasons for international expansion have been broadly addressed in existing literature and typically reflect economic or strategic objectives. However, a myriad of family objectives must also be considered in the case of family businesses. This paper aims to determine the motivations for family business internationalisation and their influence on international commitment in the context of family involvement. This work compares the significance of economic goals with the relevance of non-economic goals (e.g., strategic and family goals) to understand which contributes the most to a firm’s international success and growth. Focusing on international Spanish wine and olive oil businesses with various levels of family involvement, our results reveal that as family involvement increases, economic motivations become less important in justifying international strategy. Strategic and family motivations become more important in this context. We further conclude that family motivations contribute the most to international success among the three types of business motivations (economic, strategic, and family).

Understanding Family Business Internationalisation: A Systematic Literature Review with Thematic Lenses

This article is a systematic review and a critical examination of 61 journal articles (published from 1996 to 2019) on the family business internationalisation (FBI). The purpose of this article is to identify the key factors that have an impact on the FBI. The result of a systematic review of factors affecting the growth of FBIs is presented and utilises both the Australian Business Deans Council ranking and H-index to objectively demonstrate all the factors that can have an impact on family business to internationalise. The key findings reveal a total of five factors out of 108 factors, which were mentioned in minimum of four papers. Using the most influential articles identified in the analysis, the article concludes with six factors family ownership, role of networks, mindset of the family founder, cross-generational involvement, family involvement which needs to be controlled by family business if they want to achieve internationalisation.

Born-again global internationalization in family businesses as a process: a dynamic capabilities perspective in the context of socioemotional wealth

PurposeBorn-again global internationalization is a rarely researched topic. Especially process-oriented studies are largely missing. In loss modes concerning their socioemotional wealth (SEW), family businesses take more risks and can be informative examples of born-again global internationalization.Design/methodology/approachThis article analyzes the process of born-again global internationalization of a mature family business triggered by succession in an SEW loss mode. The interplay of dynamic capabilities (DCs) as drivers and SEW preservation guides the in-depth analysis based on an interpretative single case study design.FindingsThe analysis reveals a model with (1) the personal and familial level of the business family, (2) the bonding and transfer level between the business family and the family business and (3) the organizational level as three levels of DCs as drivers of born-again global internationalization in family businesses and SEW preservation as a continuously influencing context.Originality/valueThe article contributes to push forward the fragmented level of knowledge in the field of born-again global internationalization of family businesses. It brings together the triggering phase of born-again global internationalization with the later phases (driving successful rapid internationalization). In particular, it explores how the triggering factors on the family level can be translated into the development of capabilities on the firm level to drive successful internationalization. Based on these insights, the article offers novel implications for research and practice.

The role of generations in family firms’ internationalization: Systematic literature review

The purpose of this study is to summarize the existing knowledge on the role of generations in the internationalization of family businesses and to outline promising future research directions in the field. The search for relevant papers was conducted in two major databases — Web of Science and EBSCO. The final sample consists of 51 articles published from 2000 to 2021. The articles were grouped into 5 major clusters, according to the research focus. Every cluster revealed several further research directions. Also there has been found an important research gap in the application of the theory of generations to the family business internationalization research. The main implication of this research is that the investigation of the topics identified in this paper would enrich and deepen our knowledge about family business internationalization in a systematic manner.The main limitation of this research is that the role of generations is considered only in the process of internationalization. Family business owners can use the results of this research when planning to launch their businesses on international markets. The process of internationalization of family firms is complex and multifaceted since these firms are unique and significantly differ from non-family firms. Thus, the understanding of how this process is influenced by the involvement of family members from different generations would help to advance the existing knowledge on the topic.

Internationalisation of family businesses in Sweden, China and Iran

Internationalisation of family businesses in Sweden, China and Iran

Internationalization of family business and its performance: examining the moderating role of digitalization and international networking capability

Internationalization of family business and its performance: examining the moderating role of digitalization and international networking capability

Moderating effect of social capital on the dynamics between entrepreneurial orientation and internationalization of Spanish family owned businesses

AbstractThis paper addresses an important knowledge gap regarding the internationalization of family businesses. To understand the specific factors that influence the internationalization of these firms, this paper investigates the role and articulation of entrepreneurial orientation (EO) and family social capital (FSC) on internationalization performance. Our findings reveal that the more entrepreneurial the family business, the higher the likelihood of identifying and exploiting business opportunities in foreign markets. The moderating effect that FSC can have on the dynamics between EO and internationalization indicates that this relational family specific asset facilitates organizational stability and performance enhancement.

Role of socioemotional wealth (SEW) in the internationalisation of family firms

PurposeFamily firms' desire to preserve and uphold socioemotional wealth (SEW) makes their internationalisation a complex phenomenon. Despite the significance of SEW in guiding family firms' internationalisation decisions, the literature in the underlying research stream is still scant and inconclusive. Thus, the purpose of the study is to gain preliminary insights about various dimensions of SEW and its impact on family firms' degree of internationalisation.Design/methodology/approachThe study employs the multi-case study research design. The multidimensional SEW scale developed by Berrone et al. (2012) is used to calculate the SEW scores for four prominent Indian family businesses through the content analysis of Chairman's Statements for a period of 13 years (2007–08 to 2019–20). Further, the study examines the relationship between SEW and family firms' degree of internationalisation through two non-parametric tests: Somers' D and Kendall-Theil regression.FindingsThe results reveal the prevalence of various dimensions of SEW in family businesses. They also indicate that different FIBER dimensions are prioritised differently in family businesses. Finally, the authors observe that there exists a negative relationship between SEW and internationalisation of family businesses, indicating that SEW hinders the internationalisation of family firms.Research limitations/implicationsThe study lends to the readers, the understanding that SEW plays a significant role in the internationalisation of family firms; thus, some modification might be needed in the existing international business theories in order to explain the role of peculiar family characteristics in the internationalisation decisions of family firms. Further, since SEW hinders the internationalisation of family firms, it raises a question for researchers and family business leaders: Do family firms need to work on their socioemotional ties to avoid making suboptimal decisions?Originality/valueThe study is a response to the call by Cleary et al. (2019) to utilise the results of content analysis of SEW in determining its impact on the family firms' external events. Majority of the studies are still using univariate measures (e.g. percentage of family ownership) to capture SEW. However, this study attempts to calculate the SEW scores of the family firms along these FIBER dimensions through content analysis. This helps in scrupulously capturing the impact of SEW in the internationalisation of family firms.

Internationalisation of family businesses in Sweden, China and Iran

Internationalisation of family businesses in Sweden, China and Iran

Contingency factors and the influences for internationalization of family businesses: a study in the industrial sector

Contingency factors and the influences for internationalization of family businesses: a study in the industrial sector

Total quality management as driver for internationalization: a case study of a small family firm

PurposeThis study investigates the relationship between Total Quality Management (TQM) and internationalization in small family firms, focusing on the role that the dimensions of TQM may have as strategic resources to implement successful internationalization strategies.Design/methodology/approachBuilding on the Resource-Based View (RBV), the study is based on a single case study, and data were gathered through in-depth interviews with the family owner-manager.FindingsFindings show that small family businesses that aim to operate in international markets have to invest constant attention toward TQM by developing strategies able to achieve excellence. More in detail, for small and medium family firms, TQM represents a driver to internationalize. Therefore, family-owned managers sustain that internationalization success depends on the increasing attention exhibited toward the following dimensions of quality, specifically on three main pillars: relationships, professionalization and long-term vision, which appear to be strategic resources in international markets. An interpretive model is proposed with a set of propositions.Research limitations/implicationsScholarly implications are threefold. First, findings contribute to the RBV theory by introducing the long-term vision as a strategic resource able to activate a loop between TQM and internationalization success. Second, results contribute to TQM literature, highlighting that it represents a driver to internationalize, and following a long-term perspective, its enhancement is stimulated by internationalization. Third, findings contribute to family business studies, underlining the relevance done of owners on professionalization as a strategic resource to ensure excellence and obtain success in overseas markets. The main drawback refers to the fact that results stemmed from one single case study. Further studies could deepen the analysis on multiple cases.Practical implicationsThe proposed case study represents a best practice and can stimulate other entrepreneurs and consultants to invest in TQM to thrive internationalization strategies.Originality/valueThe current study, elucidating that TQM is the driver to stimulate family business internationalization, proposes an interpretive model to study TQM and internationalization in small and medium family firms.

Romanian family business internationalization: knowledge management and dynamic capabilities

Abstract The key aspects of today’s economic climate are intensified competitiveness and fast-changing global markets. In order to stay competitive, family companies need to respond to these developments and more frequently seek foreign expansion themselves. To understand how organisations should respond to changes in the market to retain a competitive edge, the idea of knowledge management and dynamic capabilities has indeed been developed. Such an environmental transition could be the internationalisation of a family business. The purpose of this research is to examine, through the lens of knowledge management and dynamic capabilities, the internationalisation of family companies. A qualitative single case study model of a family business that has been through an international expansion has been considered, collecting evidence through semi-structured qualitative interviews with three of the company’s key individuals. The study reveals that in the internationalisation process, there are many skills that assist family companies. Sensing technologies include screening capabilities for networks and industries and helping family companies identify new prospects in international markets. Seizing skills provide decision-making and management capabilities and change the capital base to take advantage of the possibilities previously sensed. Finally, family businesses should constantly reconfigure their tools with transforming skills, which consist of entrepreneurial knowledge capabilities, to optimise processes and frameworks in the current international setting. Different facets of family life influence the development of these complex skills.