Internationalisation of family and non-family firms: a conjoint experiment among CEOs

Mensching, Helge; Calabrò, Andrea; Eggers, Felix; Kraus, Sascha

doi:10.1504/ejim.2016.078795

Cited by 27 publications

(18 citation statements)

References 73 publications

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“…Research findings confirm that the inseparability of family ownership and control exerts key influence on firm internationalisation [Ramasamy, Yeung, Laforet, 2012], nonetheless unlike previous research (e.g., [Mensching et al, 2016]) this paper points to its positive rather than negative influence of family ownership. Thus, it is not only the resources and capabilities of the firm that determine its internationalisation inducement, but more so the determination of the owner-manager to find ways to internationalise the firm.…”

Section: Discussionsupporting

confidence: 77%

Building the Born Globals: Evidence from Bulgarian Manufacturing Family Firms

Marinova¹,

Marinov²

2016

Vestnik SPbSU. Management

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The purpose of the paper is to explore the internationalisation of family firms in the manufacturing sector of the Bulgarian economy, answering the questions: why and how these firms internationalise. A qualitative approach was adopted for the study and data were collected via faceto-face interviews with the owner-managers of family firms. The derived information was coded so that the case firms would be analysed using the same approaches. Research findings show that the early internationalisation of the case firms makes them fall into the category of born globals. The main reasons for the early internationalisation of the studied firms were found to be rooted mostly in the protective behaviour of their owners-managers, their personal characteristics and contacts, the specificity of the transitional context and the market limitations among others. This study is pioneering in transition contexts and is expected to be useful for academics, practicians and policy decision-makers.

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Section: Discussionsupporting

confidence: 77%

Building the Born Globals: Evidence from Bulgarian Manufacturing Family Firms

Marinova¹,

Marinov²

2016

Vestnik SPbSU. Management

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“…Although firms entering foreign countries face a liability of foreignness, which may condition their choices, not all organizations respond to the institutional pressures in the same way (Berrone et al, 2010;Mensching, Calabrò, Eggers, & Kraus, 2016). Firms' resources and internal factors may also influence how they operate in foreign markets, and make certain risky operations easier to manage (Berry, 2006).…”

Section: The Asymmetric Effect Of Institutional Distance On Internamentioning

confidence: 99%

The asymmetric effect of institutional distance on international location: Family versus nonfamily firms

Hernández

Nieto

Boellis

2018

Global Strategy Journal

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Research Summary: This study examines international location choice by considering the potential effects of institutional distance on the decision comparing family and nonfamily firms. We argue that the magnitude and direction of institutional distance matter and that institutional distance has an asymmetric effect on location choice. However, we argue that family involvement has a moderating effect on this relationship because family firms manage institutional distance differently than nonfamily counterparts. Our results, using a sample of Italian firms (2000–2013), reveal that firms are more likely to choose locations for which the positive institutional distance is greater. Additionally, when compared to nonfamily firms, family firms are more likely to choose locations with greater negative institutional distance and less likely to enter countries with greater positive institutional distance. Managerial Summary: Institutional distance between countries is an important dimension firms take into account when deciding the location of their foreign investments. We show the importance of the magnitude and direction of this distance in choosing the destination country and the different impact that distance has for family firms. Institutional distance has an asymmetric effect on the international location choice. Specifically, greater positive institutional distance makes firms more likely to choose a location; on the contrary, greater negative institutional distance makes the location less attractive. Family firms, however, present some peculiarities that fine‐tune the effect of institutional distance on the location decision. Thus, family firms are more (less) likely to choose locations involving lower (higher) levels of institutional development than their home country compared to nonfamily counterparts.

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“…The crucial importance of considering both extent (scale) and breadth (scope) of internationalization is emphasized by the Uppsala model (Johanson & Vahlne, ), which has been the dominant paradigm for the analysis of the internationalization process of the firm for decades and is considered appropriate in describing the internationalization of family firms (Mensching et al, ). According to this model, internationalization evolves along two dimensions: the “establishment chain” and the “psychic distance chain,” which relate to the two dimensions of extent and breadth, respectively.…”

mentioning

confidence: 99%

The mixed gamble of internationalization in family and nonfamily firms: The moderating role of organizational slack

Alessandri

Cerrato

Eddleston

2018

Global Strategy Journal

159

186

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Research Summary: The unique preferences of family firms may lead to internationalization strategies that differ from those of nonfamily firms. Furthermore, heterogeneity among family firms may lead to variation in internationalization. From the mixed gamble perspective, we examine the internationalization of different types of family firms (weak family owned, strong family owned, and family owned and managed), as well as nonfamily firms, considering how differences in family involvement alter the perceptions of potential gains and losses to socioemotional and financial wealth. We also highlight the varying sensitivities of nonfamily firms and types of family firms to the effects of available and recoverable slack. Our findings underscore differences in internationalization strategies among family and nonfamily firms and demonstrate that slack alters the mixed gamble calculus of internationalization for the different types of firms. Managerial Summary: Whether family firms internationalize more or less than nonfamily firms is debated. We aim to reconcile this debate by investigating the extent and breadth of internationalization and home region orientation. We propose that inconsistent results regarding family firms’ internationalization are due to their heterogeneity whereby family ownership and management lead to different preferences. Study results support our framework by demonstrating that while nonfamily firms exhibit the highest levels of internationalization, there is much variance among family firms. Additionally, we demonstrate that financial slack further explains differences between family and nonfamily firms. Our study therefore offers a richer understanding of family and nonfamily firms’ internationalization and reveals significant differences among family firms that suggest family owners and managers view the risks of internationalization differently.

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Internationalisation of family and non-family firms: a conjoint experiment among CEOs

Cited by 27 publications

References 73 publications

Building the Born Globals: Evidence from Bulgarian Manufacturing Family Firms

Building the Born Globals: Evidence from Bulgarian Manufacturing Family Firms

The asymmetric effect of institutional distance on international location: Family versus nonfamily firms

The mixed gamble of internationalization in family and nonfamily firms: The moderating role of organizational slack

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