Strategic Response to Inward Foreign Direct Investment: A Study of Indian Family Firms

Family multinationals: a systematic literature review to take stock and look ahead

“…The context of origin is also a key issue in explaining why some family firms become multinationals. For example, studying Indian family firms, Mondal et al. (2021) find that family firms in emerging markets often expand abroad through FDIs as a reaction to the announcement of large MNEs entering their home market and the resulting perceived competitive threat and risk of domestic market saturation.…”

“…The context of origin is also a key issue in explaining why some family firms become multinationals. For example, studying Indian family firms, Mondal et al (2021) find that family firms in emerging markets often expand abroad through FDIs as a reaction to the announcement of large MNEs entering their home market and the resulting perceived competitive threat and risk of domestic market saturation. Despite that the literature covers some key aspects related to contextual influences, our review highlights the absence of studies that consider industrial/sectoral specificities, and whether/how these shape family multinationals' assessments, perceptions, and the seizing of cross-border entrepreneurial opportunities (Basuil and Datta, 2015).…”

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

“…For example, Wei et al (2020) demonstrated in the Chinese context that FFs owned by a lone founder have a higher propensity to and intensity of FDI than those owned by multiple family members (Wei et al , 2020); Shanmugasundaram (2019) demonstrated that also the level of ownership concentration shapes the decision to go international through FDIs; instead, Jimenez et al (2019) argued that it is not family ownership itself that matters but rather ownership and the presence on the Board of Directors to drive FFs toward a lower scope of their FDIs compared to non-FFs. Similarly, Ray et al (2018) and Mondal et al (2021) demonstrated also that the presence of family members at the managerial level is negatively associated to FDIs scale and scope, thereby suggesting that family-managed firms are more averse to this type of internationalization than FFs managed by nonfamily professionals. As a mirror finding, sophisticated financial management and external ownership are deemed to foster FDIs in FFs (Dick et al , 2017).…”

“…Moreover, a recent study by Fourné and Zschoche (2020) introduced a different perspective and suggests that FFs pursue trait-based imitation of successful FFs to reduce uncertainty in their FDIs. Likewise, also Mondal et al (2021) conceptualized FDIs in FFs as a reactive behavior. Specifically, their results indicate that FFs increase their existing outward FDIs in response to inward FDIs announcements by foreign MNEs.…”

Overcoming institutional voids in the home country for internationalization: an exploratory examination of institutional strategies of Indian MNEs

“…Increasing internationalization of multinational enterprises from emerging markets (EMNEs) has attracted significant attention from researchers as well as policymakers (e.g. Buckley et al, 2016;Li and Cantwell, 2021;Mondal, Lahiri and Ray, 2021;Pradhan, 2017). The rapid pace and unique internationalization strategies of EMNEs have been attributed, among other factors, to the national and subnational institutional environments in EMNEs' home countries (Nayyar and Prashantham, 2020;Stucchi, Pedersen and Kumar, 2015).…”