Analysis of the Influence of the Moment the Internationalization Process Begins on the Internationalization Intensity of Family and Nonfamily Businesses: An Approach Using a Tobit Model

Abstract

The specific characteristics of family businesses as well as the internationalization path followed can influence the intensity of the internationalization process. Many studies have analyzed how family character can influence the internationalization process of family businesses, and the results obtained have not been conclusive. Nevertheless, previous research has not sufficiently addressed the influence that the moment of initiation of the internationalization process has on the levels of internationalization achieved. Based on the behavioral agency model, the unique set of business resources (familiness), and the socioemotional wealth (SEW) perspective, this study examines, the internationalization intensity of family and nonfamily businesses in two defined groups (early internationalization and internationalization from the local market). Likewise, the effect that the entry of the second generation has on the internationalization of these companies is analyzed. To perform this analysis, Tobit regression models are estimated from a data set of panel data from the Spanish Survey on Business Strategies for small and medium-sized Spanish family businesses from 2005 to 2016, finding that family ownership and management have a negative influence on the intensity of exports, regardless of the path of internationalization followed, and that the entry of new generations has a positive relationship with the level of internationalization of these businesses. Finally, implications of the findings for research and management are discussed.

Eco-Efficiency Evaluation of Integrated Transportation Hub Using Super-Efficiency EBM Model and Tobit Regressive Analysis – Case Study in China

“…Due to the truncated nature of the calculated eco-efficiency values, the dependent variable is limited and exhibits a discrete distribution. In order to avoid estimation bias, the panel Tobit regressive model [53] is selected to analyse the factors influencing eco-efficiency of ITH. The model expression is as follows:…”

The Role of Family Ownership on Internationalization Strategies

“…In a more globalized economy, internationalization is seen as an opportunity for enterprises to grow and prosper (Calabrò et al 2013). Although this process might be more difficult for FBs due to the specific characteristics of this kind of firm, the literature is still divided as to whether the impact of family ownership positively or negatively affects the different stages of internationalization of the firm (Andreu et al 2020;Benito-Hernandez et al 2014;Calabrò et al 2013;Cerrato and Piva 2012;Costa 2022;Evert et al 2018;Nieto 2005, 2006;Manogna and Mishra 2021;Varas-Fuente et al 2022;Zahra 2003). At present, all enterprises, independent of their size, country, or industry, must be prepared for growing competition due to increasing internationalization (Cerrato and Piva 2012).…”

“…Managing the complexities requires strategic attention and adaptability in the global market (Cerrato and Piva 2012). These strategic decisions to operate in foreign markets entail potential advantages and disadvantages (Varas-Fuente et al 2022). In FBs, the lines between ownership and management are typically blurred, with managers often investing a significant portion of their wealth in the company and taking on the risks of unsuccessful investments; they may be reluctant to engage in internationalization due to the inherent risk (Cerrato and Piva 2012).…”

“…Due to the worldwide interconnectedness of markets, adopting internationalization as a fundamental business strategy has become imperative for companies, resulting in a significant upsurge in the number of firms extending their presence to global markets (Varas-Fuente et al 2022). However, FBs possess distinctive traits that can influence their international strategies compared to non-family businesses (hereafter NFB) (Andreu et al 2020).…”

“…However, FBs possess distinctive traits that can influence their international strategies compared to non-family businesses (hereafter NFB) (Andreu et al 2020). The impact of FBs on internationalization is still not consensual, with a growing body of research still trying to find a general agreement (Almodóvar et al 2016;Andreu et al 2020;Baronchelli et al 2016;Benito-Hernandez et al 2014;Calabrò et al 2013;Cerrato and Piva 2012;Costa 2022;Evert et al 2018;Nieto 2005, 2006; Graves and Shan 2014;Graves and Thomas 2004;Lu et al 2015;Manogna and Mishra 2021;Piva et al 2013;Singh and Kota 2017;Varas-Fuente et al 2022;Zahra 2003).…”