Family firms and international equity-based entry modes: a systematic literature review

Abstract

Purpose Although research on family firms (FF) internationalization has seen a boom over the past 30 years, the understanding of how FFs internationalize with equity modes is still fragmented. Indeed, the majority of extant literature on this topic identifies internationalization with export, overlooking the alternative equity-based entry modes FFs have when entering a foreign country. The purpose of this paper is to fill this gap with a framework-based systematic literature review on the topic to improve the understanding of this phenomenon and propose a way forward. Design/methodology/approach This study conducted a framework-based systematic literature review of 93 papers published between 1993 and 2021. Findings This study adds to the current debate on FFs internationalization by integrating previous review efforts with a deeper investigation of FFs’ equity-based entry modes. This study contributes to this body of knowledge in the family business research by synthetizing and systematizing extant literature with a framework-based approach from the international business (IB) field. In so doing, this study builds a stronger link between these two areas of research. Finally, research gaps and promising research avenues for future studies are also presented. Originality/value This study responds to the call to create a dialogue between the FFs and IB fields by systematizing the extant body of knowledge and integrating the FF literature with one of the most widely used frameworks (Pan and Tse, 2000) on entry modes in the IB domain.

The Sustainability of Family Ownership on the Choice of Foreign Market Entry Mode: Empirical Evidence from Listed Family Firms in China

“…Sestu et al (2018) combined the social-emotional wealth theory and transaction cost theory, and they found that the decision making of equity entry mode of Italian family and non-family firms would be affected by the family or non-family nature of local firms [49]. Other scholars (Sena et al, 2022;Maggi et al, 2023) examined institutional variables and multinational firms and were concerned about their equity entry mode [50,51].…”

Essays on Internationalization in Modern Capitalism: The Issues of Knowledge Intensity, Chinese MNEs, Digitalization, and Foreign Market Entry Strategies

“…The extent of ownership of multinational corporations in their foreign subsidiaries represents a critical decision as these corporations navigate the intricacies of global expansion. Significant research efforts have been directed towards investigating the factors influencing the levels of equity ownership in foreign subsidiaries (Bruneel & De Cock, 2016;Maggi et al, 2022). As the firm aims to penetrate new markets and engage with local customers, the selection of appropriate foreign market entry strategies becomes paramount.…”

“…Inquiries into the determinants influencing the selection of equity ownership levels in foreign subsidiaries persist as a central focus within the realm of foreign market entry mode research. As evidenced by recent comprehensive reviews conducted by Chhabra et al (2021) and Maggi et al (2022), substantial scholarly attention is currently devoted to examining the factors shaping the extent of equity ownership in foreign subsidiaries. Various theoretical frameworks have been posited to elucidate the underlying rationale governing the decision-making process regarding equity ownership levels, encompassing perspectives such as the resource-based view (Barney, 1991), organizational learning theory (Barkema & Vermeulen, 1998), institutional 10 theory (Di Guardo et al, 2016), transaction cost economies (Williamson, 1986), and network theories (Birkinshaw & Pedersen, 2009;Rugman & Verbeke, 2001).…”