Internationalization and entrepreneurial orientation of family SMEs: The influence of the family character

Mikel Alayo, Amaia Maseda, Txomin Iturralde and Unai Arzubiaga

International Business Review, 2019, vol. 28, issue 1, 48-59

Abstract: Internationalization is an important entrepreneurial strategy for promoting the long-term growth and survivability of small and medium-sized enterprises (SMEs). Family involvement in top management teams (TMTs) can explain the heterogeneous behaviors of these firms’ international entrepreneurship process. This paper analyzes the moderating effects of the family’s influence on the relationship between entrepreneurial orientation and internationalization with two TMT diversities found only in family firms: the family TMT ratio and generational involvement. An analysis of 191 Spanish family SMEs indicated that entrepreneurial orientation plays a significant role in explaining the degree of internationalization in family firms and that a diversely formed TMT shapes this relationship. A high concentration of family members in managerial positions hinders the international entrepreneurship process. This fact highlights the importance of hiring non-family managers to promote internationalization. The results also reveal that involving multiple generations in decision-making hampers entrepreneurial internationalization, generating control and coordination problems.

Keywords: Internationalization; Entrepreneurial orientation; Family firms; Family involvement; Generational involvement; Top management team (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

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DOI: 10.1016/j.ibusrev.2018.06.003

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