Family firms between territory and internationalization: an authenticity based perspective

Bridging locality and internationalization – A research agenda on the sustainable development of family firms

“…The fourth article, 'Family Firms Between Territory and Internationalization: an Authenticity Based Perspective' by Silvia Ranfagni, Andrea Runfola, and Daria Sarti, discusses the role of authenticity as a driver of internationalization in family firms. In observing the importance of roots in an organization's collective values as an expression of the cultural legacy of its territory, its history, and traditions, Ranfagni, Runfola, and Sarti (2021) recognize the role of authenticity. Adopting a multiple case study approach, the paper explores how the authenticity of local roots shapes the international development of family firms in their foreign markets.…”

“…Such episodes highlight the need to balance both family and business objectives, underscoring the intricate relationship between a family and business system where unique resources, constraints and processes impact the way a business develops sustainably over time, even amidst disruptions (e.g., Covid-19 or other crises) (Olson et al 2003). This suggests that families have to rethink the use of the local and global resources at hand (Campopiano, Calabrò, and Basco 2020), relying on lessons previously learned (Konopaski, Jack, and Hamilton 2015;Spielmann et al 2021), knowledge (Cabrera-Suárez, García-Almeida, and De Saá-Pérez 2018; Chirico and Salvato 2016), family identity (Fitz-Koch, Cooper, and Discua Cruz 2019), and authenticity (Ranfagni, Runfola, and Sarti 2021), to ensure the firm's continuity, which ultimately feeds into its sustainable development.…”

“…Moreover, the articles challenge the common perception that family firms are mostly local players and hesitant to participate in the international arena. Indeed, they demonstrate that family firms are not shy in expanding their business activities beyond their home borders and rely on unique home-bound aspects (Ranfagni, Runfola, and Sarti 2021). Logically, this will be affected by various contextual factors, but also by the deliberate intentions of family members to work together across generations to ensure the sustainable development of their firm (Sharma and Sharma 2021;Baù et al 2020).…”

“…Local institutions and the institutional contexts play a fundamental role in the development of family firms (Pittino et al 2021;Ricotta and Basco 2021). The internationalization of family firms is strongly affected by their local ties and family-centred goals (Ranfagni, Runfola, and Sarti 2021;Pongelli et al 2021). These considerations, amongst many others, push for a general reflection on the need to contextualize family firms (James et al 2020) and better understand the role of multiple environments -local and global -in their sustainable development.…”

“…The global environment is linked to the roots of the family firm, which might perceive a tension between its local origin and global position. For example, Ranfagni, Runfola, and Sarti (2021) reflect on the authenticity that family firms are able to maintain when operating in international settings. Pongelli et al (2021) explore the relationship between family-centred goals and geographic focus in international markets.…”