EconPapers    
Economics at your fingertips  
 

The family as a platform for FSA development: Enriching new internalization theory with insights from family firm research

Liena Kano (), Luciano Ciravegna () and Francesco Rattalino ()
Additional contact information
Liena Kano: University of Calgary
Luciano Ciravegna: King’s College
Francesco Rattalino: ESCP Business School

Journal of International Business Studies, 2021, vol. 52, issue 1, No 9, 148-160

Abstract: Abstract This research note links insights from the family firm literature with extant internalization theory-based studies on family firm internationalization to explain how family-owned multinational enterprises (MNEs) can leverage family resources for successful internationalization, and why some family firms are unable to do so. We identify examples of internationally relevant resources contributed by the founding family, namely, social capital, long-term orientation, and reputation. We then differentiate between pre-existing resources that reside at the family level, and firm-specific advantages (FSAs) that reside at the firm level. In order to derive FSAs from family resources, and to profitably exploit those across borders, family MNEs must engage in two types of recombination. First, family and non-family resources are recombined to create actionable FSAs. Second, family-derived FSAs are recombined with location-specific resources in order to respond to differences between home and host country environments. We discuss complementary resources required for each type of recombination and specific mechanisms utilized by family MNEs to integrate those resources. By investigating a potential functional contribution of a family to successful internationalization, we extend prior internalization theory-based work, which focuses predominantly on family firms’ propensity toward bifurcation bias and the constraining effect of this bias on efficient international governance.

Keywords: new internalization theory; family firm internationalization; firm-specific advantages; recombination; bifurcation bias (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1057/s41267-020-00308-y Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jintbs:v:52:y:2021:i:1:d:10.1057_s41267-020-00308-y

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

DOI: 10.1057/s41267-020-00308-y

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-07-24
Handle: RePEc:pal:jintbs:v:52:y:2021:i:1:d:10.1057_s41267-020-00308-y