Family firms in the global economy: Toward a deeper understanding of internationalization determinants, processes, and outcomes

Abstract

Research Summary: Research on the internationalization of family firms has flourished in recent years, yet the mechanisms through which family involvement shapes the determinants, processes, and outcomes of internationalization remain little understood and largely undertheorized. We contribute to research at the intersection of international business and family business by examining the roles of different sources of family firm heterogeneity and the context in shaping the determinants, processes, and outcomes of business internationalization. Drawing on this analysis, we summarize the articles published in this special issue and set out an agenda for further research aimed at advancing a more fine‐grained and contextualized understanding of internationalization in family firms.

Family Business Growth Around the World

“…First, we condition the principal-principal agency perspective by showing that family influence is on average beneficial to firm growth. We also show how that effect varies across different types of family firms, economies, and business cycles in publicly traded firms around the globe, where family firms are often of paramount economic importance (Barontini & Caprio, 2006;De Massis, Frattini, Majocchi, & Piscitello, 2017;European Commission, 2009;European Family Business Barometer, 2017;Faccio & Lang, 29 2002).…”

Innovation in Family Firms: A Systematic Literature Review and Guidance for Future Research

“…; De Massis et al . ), dynamics and processes could be investigated by looking at innovation in relation to the succession process and goal setting/SEW preservation. Finally, we propose the analysis of well‐known paradigms from innovation literature in terms of investigating open innovation and the heterogeneity of innovation constructs and paradigms.…”

Succession management success at PT Bakrie Brothers Tbk

“…In some cases, families establish a succession program in response to a major shift in focus or strategy, such as internationalization. To ensure that the company meets investors' expectations regarding management capability in all fields, the family member that controls the firm may turn over his or her position to another family member who is considered more capable (Coutinho & Moutinho, 2012).…”

“…Family-run companies are a vital part of the world economy. Many have grown into multinational conglomerates with influence that extends beyond the boundaries of their country of origin (De Massis, Frattini, Majocchi, & Piscotello, 2018;Khavul, Bruton, & Wood, 2009;McDonald & Hite, 2008). In some cases, however, family firms with enormous potential never manage to achieve that scale, whereas others fail (Michel & Kammerlander, 2015;Sund, Melin, & Haag, 2015).…”