The Choice Between Wholly-Owned Subsidiaries and Joint Ventures Within Family Firms: An Empirical Analysis

Claudia Pongelli ()
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Claudia Pongelli: University of Rome Tor Vergata

Chapter Chapter 4 in Family Firms into International Markets, 2022, pp 55-85 from Springer

Abstract: Abstract This chapter provides an empirical analysis on the relationship between family leadership and entry mode decisions. Specifically, the analysis are based on a sample of 3939 foreign subsidiaries run by 586 family-controlled firms and aims at investigating trade-offs and interactions between performance and emotional hazards as drivers of the choice between wholly-owned subsidiary and joint venture in family led firms. Findings show that the family leader’s willingness to preserve family control through a wholly-owned subsidiary is stronger when low performance hazard matches with high emotional hazard. Empirical evidence also indicates this tendency weakens as the cultural distance between the domestic and the foreign country increases.

Keywords: Family firms; Socioemotional wealth; Joint ventures; Wholly-owned subsidiaries; Cultural distance (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-05398-6_4

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DOI: 10.1007/978-3-031-05398-6_4

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