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Generational Succession as a Trigger for Family Business Internationalization

Ricardo Jorge Fernandes Coutinho () and Raquel Meneses Moutinho ()
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Ricardo Jorge Fernandes Coutinho: Exertus - Consultores
Raquel Meneses Moutinho: Faculdade de Economia do Porto

Economics and Management Research Projects: An International Journal, 2012, vol. 2, issue 1, 1-17

Abstract: For many individuals the two most important dimensions in their lives are family and work and, as such, it is understandable the potential of family firms. One of the barriers this type of business has to face is the succession. This process is regarded as key stage in the life of a family business and, as a result of this importance, has been one of the topics most addressed in the literature. At the same time, family businesses are commonly described as having a lower propensity to internationalize. Actually, the born-again global phenomenon has gained increasing importance. This concept refers to companies that, after many years focused on the domestic market, suddenly embrace in an internationalization process. The present research aims to bring together the phenomenon of born-again global with family business reality. Using the grounded methodology we developed an exploratory study, analyzing six companies in which the successions lead to the beginning of internationalization and we find a bridge linking succession and born-again global firms: the successor appears as a critical factor to the internationalization process, years after of a national scope of activity.

Keywords: Succession, Born-again global, Entrepreneurship; Internationalization (search for similar items in EconPapers)
JEL-codes: F23 M16 (search for similar items in EconPapers)
Date: 2012
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Handle: RePEc:por:emrpij:v:2:y:2012:i:1:p:1-17