The Internationalisation of Family Firms: the Role of the Ownership Structure and the Composition of Top Management Team
Objective: The objective of this paper is to investigate the determinants of family firm internationalisation, focusing on the roles of ownership (i.e. concentration of ownership, foreign ownership) and management (i.e. involvement of nonfamily managers, owner-CEO). Research Design & Methods:...
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| Format: | Article |
| Language: | English |
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Cracow University of Economics
2017-03-01
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| Series: | Entrepreneurial Business and Economics Review |
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| Online Access: | https://eber.uek.krakow.pl/index.php/eber/article/view/184 |
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| _version_ | 1849420291765174272 |
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| author | Aleksandra Wąsowska |
| author_facet | Aleksandra Wąsowska |
| author_sort | Aleksandra Wąsowska |
| collection | DOAJ |
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Objective: The objective of this paper is to investigate the determinants of family firm internationalisation, focusing on the roles of ownership (i.e. concentration of ownership, foreign ownership) and management (i.e. involvement of nonfamily managers, owner-CEO).
Research Design & Methods: We test our hypothesis using linear regression models and logistic regression models, based on a sample of 6,957 family firms from seven European countries (Austria, France, Germany, Hungary, Italy, Spain, UK).
Findings: The concentration of ownership within the family hinders the propensity to export, but it has no effect on export intensity and export scope. Foreign ownership contributes to firm performance and that the impact of minority foreign ownership is more pronounced than the controlling foreign ownership. The involvement of nonfamily managers enhances internationalisation, and that owner-CEO hinders internationalisation, but only in terms of global exporting.
Implications & Recommendations: The inclusion of outsiders (both in terms of ownership and management) enhances family firms’ internationalisation. This finding is particularly relevant to family business planning to expand abroad. We encourage further research investigating the relationships between different dimensions of ‘familiness’ and firm internationalisation, preferably in a multi-country context (e.g. advanced versus emerging economies).
Contribution & Value Added: The originality of this work lies in treating family firms as a heterogeneous group and investigating the impact of different dimensions of ’familiness’ (i.e. ownership structure, composition of TMTs) upon an internationalisation strategy.
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| format | Article |
| id | doaj-art-043e19d64b8c4000a257ec2bf9d0286e |
| institution | Kabale University |
| issn | 2353-8821 |
| language | English |
| publishDate | 2017-03-01 |
| publisher | Cracow University of Economics |
| record_format | Article |
| series | Entrepreneurial Business and Economics Review |
| spelling | doaj-art-043e19d64b8c4000a257ec2bf9d0286e2025-08-20T03:31:48ZengCracow University of EconomicsEntrepreneurial Business and Economics Review2353-88212017-03-015110.15678/EBER.2017.050110154The Internationalisation of Family Firms: the Role of the Ownership Structure and the Composition of Top Management TeamAleksandra Wąsowska0University of Warsaw Objective: The objective of this paper is to investigate the determinants of family firm internationalisation, focusing on the roles of ownership (i.e. concentration of ownership, foreign ownership) and management (i.e. involvement of nonfamily managers, owner-CEO). Research Design & Methods: We test our hypothesis using linear regression models and logistic regression models, based on a sample of 6,957 family firms from seven European countries (Austria, France, Germany, Hungary, Italy, Spain, UK). Findings: The concentration of ownership within the family hinders the propensity to export, but it has no effect on export intensity and export scope. Foreign ownership contributes to firm performance and that the impact of minority foreign ownership is more pronounced than the controlling foreign ownership. The involvement of nonfamily managers enhances internationalisation, and that owner-CEO hinders internationalisation, but only in terms of global exporting. Implications & Recommendations: The inclusion of outsiders (both in terms of ownership and management) enhances family firms’ internationalisation. This finding is particularly relevant to family business planning to expand abroad. We encourage further research investigating the relationships between different dimensions of ‘familiness’ and firm internationalisation, preferably in a multi-country context (e.g. advanced versus emerging economies). Contribution & Value Added: The originality of this work lies in treating family firms as a heterogeneous group and investigating the impact of different dimensions of ’familiness’ (i.e. ownership structure, composition of TMTs) upon an internationalisation strategy. https://eber.uek.krakow.pl/index.php/eber/article/view/184family firmstop management teamownership structureinternationalisationexport |
| spellingShingle | Aleksandra Wąsowska The Internationalisation of Family Firms: the Role of the Ownership Structure and the Composition of Top Management Team Entrepreneurial Business and Economics Review family firms top management team ownership structure internationalisation export |
| title | The Internationalisation of Family Firms: the Role of the Ownership Structure and the Composition of Top Management Team |
| title_full | The Internationalisation of Family Firms: the Role of the Ownership Structure and the Composition of Top Management Team |
| title_fullStr | The Internationalisation of Family Firms: the Role of the Ownership Structure and the Composition of Top Management Team |
| title_full_unstemmed | The Internationalisation of Family Firms: the Role of the Ownership Structure and the Composition of Top Management Team |
| title_short | The Internationalisation of Family Firms: the Role of the Ownership Structure and the Composition of Top Management Team |
| title_sort | internationalisation of family firms the role of the ownership structure and the composition of top management team |
| topic | family firms top management team ownership structure internationalisation export |
| url | https://eber.uek.krakow.pl/index.php/eber/article/view/184 |
| work_keys_str_mv | AT aleksandrawasowska theinternationalisationoffamilyfirmstheroleoftheownershipstructureandthecompositionoftopmanagementteam AT aleksandrawasowska internationalisationoffamilyfirmstheroleoftheownershipstructureandthecompositionoftopmanagementteam |