International Strategy Configurations of the World’s Top Family Firms

Abstract

0Many variables have been studied, rather inconclusively, to determine behavioural differences of family firms and any impact on performance. This article focuses on just one under-researched variable: their international strategic choices or rather 'configurations'. We compare 65 of the world's top family firms with those of a matched sample of non-family firms. 0 Results suggest that family firms' 'international 'configurations' were just as worldwide and profitable as those pursued by non-family firms. In the case of such large companies, researchers must consider this international dimension alongside other more acknowledged variables, if they are to advance understanding in this important emerging new field.

Family firm internationalization: Heritage assets and the impact of bifurcation bias

“…In terms of bifurcation‐biased firms, inefficiencies in international governance caused by such bias will, in the long run, lead to a switch to a comparatively more efficient governance form—in other words, biased firms will become uncompetitive in international markets and will be forced either to eliminate bifurcation bias from their governance practices or switch to nonfamily type governance. This argument is aligned with Carr and Bateman's () finding that international strategic choices of the world's top family firms are similar to those of large MNEs with dispersed ownership.…”

Family Involvement in the Firm and Exports in the Family SME: Is the Manager’s International Orientation Influential?

“…Besides, the possible reluctance of the owning-family about this strategy and also the perceived risks may decrease. Supporting this assumption, Carr and Bateman [2009] found that the international configurations of the largest world's family firms are associated in the long term with a better performance (ROI). Other studies found that the percentage of equity held by the family is positively correlated with the degree of internationalization [Zahra 2003;Chen 2011] and geographic scope [Zahra 2003].…”

“…In contrast, for other authors [Simon 1996, Wang 2010Chen 2011;Carr and Bateman 2009], because adopting a long-term perspective, the family firm is likely to promote investments which benefits are remote and would be devoted therefore more easily to a strategy of internationalization.…”

“…Dispelling doubts about internationalization thanks to his better knowledge of foreign markets and business practices, the manager may obtain the support of the owning-family and help defeat the forces of stagnation and inertia. Therefore, it is possible for family firms to achieve a successful global position as Carr and Bateman [2009] observed that the top world family firms are not less "worldwide-oriented" in terms of international configurations adopted.…”

Family Entrepreneurship Orientation in Family Owned SMEs: A Key Resource for Internationalization?

“…The remaining 420 questionnaires were used in the statistical analysis. Earlier studies (Okoroafo, 1999;Child, Hong, & Wong, 2002;Erdener & Shapiro, 2005;Olivares-Mesa & Cabrera-Suárez, 2006;Kontinen & Ojala, 2012a;Graves & Thomas, 2008;Claver, Rienda, & Quer, 2007;2010b, Muñoz-Bullón & Sánchez-Bueno, 2012Muñoz-Bullón & Sanchez-Bueno;2011;Lin, 2012) indicate that a decision on the internationalization nature in family owned comapnies is determined by a number of factors related to the business, the competitive position of the company (Gallo & Sveen, 1991;Yeung, 2000;Tsang, 2001Tsang, , 2002Zahra, 2003;Sciascia, Mazzola, Astrachan, & Pieper, 2012a, 2012bFernández & Nieto, 2006;Carr & Bateman, 2009;Donckels & Fröhlich, 1991;Kim, Kandemir, & Cavusgil;2004) and very strongly depends on family related features (Menendez-Requejo, 2005;Graves & Thomas 2006;Claver, Rienda, & Quer, 2009;Davis & Harveston, 2000;Byrom & Lehman, 2009;Calabrò, Mussolino, & Huse, 2009). To meet the aim of the article, first the internationalization in context of family businesses is discussed.…”