Influence of Family Involvement on Family Firm Internationalization: The Moderating Effects of Industrial and Institutional Environments

Zhou, Ling; Yan, Han; Chao-li, Gou

doi:10.3390/su11205721

Cited by 10 publications

(4 citation statements)

References 47 publications

(102 reference statements)

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“…Some authors have documented a positive relationship with export intensity (Zhara, 2003;Chen et al, 2014;Cho and Lee, 2017;Marin et al, 2017;Zhou et al, 2019). Both Zahra (2003) and Marin et al (2017) support the stewardship theory, having found that family involvement in the ownership of a firm improves the performance of the internationalisation process because the family members see this strategy as a way to ensure the long-term sustainability of the company and obtain nonfinancial goals (SEW).…”

Section: Introductionmentioning

confidence: 91%

“…Cho and Lee (2017) reach the same conclusion, drawing on resource-dependent theory and agency theory; they show that Korean SMEs with high family ownership accumulate strategic capabilities and resources and exploit agency benefits that favour export performance. Zhou et al (2019) show that family ownership is a special resource that can provide family firms with the needed resources for internationalisation, such as family human capital, social capital, patient capital and survivability capital. In contrast, other researchers have found a negative relationship between family firms and export performance Nieto, 2005, 2006;Ray et al, 2018), showing that the disadvantages of family ownership outweigh the benefits.…”

Section: Introductionmentioning

confidence: 99%

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Family ownership and the export performance of SMEs: the moderating role of financial constraints and flexibility

Pascucci

Domenichelli

Peruffo

et al. 2021

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PurposeThis article investigates the relationship between family ownership and export performance in the context of SMEs while also considering the moderating role of the financial dimension and, in particular, financial constraints and financial flexibility.Design/methodology/approachWe select a sample of 1,132 Italian SMEs to examine through an econometric analysis the role and impact of family ownership and the financial moderating variables being used on their export performance.FindingsThe results indicate that there is a U-shaped relationship between family ownership and export performance: the highest levels of export performance correspond to the lowest and highest family ownership levels, whereas when a mixture of family and nonfamily ownership exists, the performance suffers because of “conflicting voices” dominating strategic visions and approaches, harming the firm's export commitment. Moreover, the findings show that lower financial constraints and/or stronger financial flexibility improve the relationship between family ownership and export performance.Research limitations/implicationsOur findings show that the ownership structure is important for export performance; in particular, firms should avoid a mixture between family and nonfamily ownership because it is detrimental to export performance. Moreover, Italian SMEs need to develop sources of financing other than the banking channel, and policy makers should favour this process to overcome financial constraint problems and improve financial flexibility. Limitations concern the use of other econometric approaches and measurement variables to further investigate the connection between family ownership and export performance.Originality/valueThe present study enhances the comprehension of the complex relationship between family ownership and export performance by documenting the relevance of the level of family ownership and considering the moderating role of financial constraints and flexibility.

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Section: Introductionmentioning

confidence: 91%

Section: Introductionmentioning

confidence: 99%

Family ownership and the export performance of SMEs: the moderating role of financial constraints and flexibility

Pascucci

Domenichelli

Peruffo

et al. 2021

JSBED

View full text Add to dashboard Cite

show abstract

“…Two dimensions of family involvement (i.e., family involvement in ownership and family involvement in management) can be distinguished on the basis of the existing literature [78][79][80][81]. Family involvement in ownership depicts the degree of family ownership and intrafamily ownership dispersion, while family involvement in management indicates the presence of the family members in the management teams of the company [78,79].…”

Section: Family Involvement and Proactive Ecsrmentioning

confidence: 99%

The Origin of Proactive Environmental Corporate Social Responsibility (ECSR) of Large Firms: Institutional Embeddedness—Driven, Family Involvement-Promoted, or Resource-Dependent?

Wang

2021

Sustainability

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Why are some firms in China highly engaged in proactive environmental corporate social responsibility (ECSR) while others are not? Knowledge of the determinants of proactive ECSR is a key research question among academics and practitioners. This study seeks to advance the ECSR literature by suggesting a configuration way of integrating institutional embeddedness, family involvement, and the resource base factors of firms to predict proactive ECSR investment, a proxy for proactive ECSR. Specifically, this study explores how the combination of institutional embeddedness, family involvement, and the resource base factors of firms jointly shape the proactive ECSR investment of large firms. Using fuzzy-set qualitative comparative analysis (fsQCA) on a sample of 162 large private firms in China, this study finds that no condition alone is sufficient to account for high proactive ECSR investment. Institutional embeddedness, family involvement, and the resource base factors of firms must interact with one another to produce highly proactive ECSR investments. There exist two distinctive configurations that provide a nuanced picture of the drivers of proactive ECSR investment. These findings provide meaningful insights for theory and practice and pave the way for future research in the domain of ECSR.

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“…Then the difference between them becomes extremely significant when the leading firms and the focal affiliate are located in different regions or provinces. It is because the industry and institutional environment varies across provinces and more variations could be found by comparing the eastern region with the western region of China (Zhou, 2019). More variations will lead to bigger difference between the intra-group system and the out-group system in the local city where the focal affiliate operates.…”

Section: Theoretical Background and Hypothesis Developmentmentioning

confidence: 99%

How do group affiliates benefit from dual legitimacy to acquire resources in emerging economies? Evidence from China

Xiao-yong

2021

CMS

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Purpose This paper aims to examine the relationships between the group affiliates’ dual legitimacy (membership legitimacy and societal legitimacy) and dual resource acquisition (intra-group and out-group), and the moderating roles of environmental uncertainty and munificence in the emerging economies. Design/methodology/approach This paper adopts hierarchical regression analysis to test the hypotheses based on the unique data of 251 group affiliated firms in China and applies the alternative measurements and alternative methodology of structural equation modeling into robustness check to confirm the results. Findings The results show as follows: the group affiliates can benefit from membership legitimacy for intra-group resource acquisition and out-group resource acquisition through the mediations of societal legitimacy and intra-group resource acquisition. However, in the linkage between affiliates’ membership legitimacy and intra-group resource acquisition and the linkage between societal legitimacy and out-group resource acquisition, environmental uncertainty plays the positive moderating roles while environmental munificence plays the negative moderating roles. Under the condition of high environmental uncertainty and low environmental munificence, the linkage between membership legitimacy and intra-group resource acquisition, and the linkage between societal legitimacy and out-group resource acquisition reach the strongest level. Research limitations/implications The findings highlight the importance of dual legitimacy building for group affiliates to acquire resources both inside and outside the business group when they operate in emerging economies characterized by high environmental uncertainty and low environmental munificence. However, it does not explore the contextual factors (e.g. institutional distance) affecting the relationship between the affiliate’s membership legitimacy and societal legitimacy. Then more group-level factors are expected to be included and explored with multi-level models in the future studies. Originality/value The findings reveal the mechanism of how group affiliates benefiting differently from dual legitimacy to acquire resources in the emerging economies, which also provide a new interpretation for the questions of who benefiting more from the group affiliation, how and why (Carney et al., 2009). This research also explores the moderating roles of task environmental characteristics (environmental uncertainty and environmental munificence) on the affiliate's dual legitimacy and dual resource acquisition, which helps understand why legitimacy building is more important in terms of resource acquisition in the emerging economy characterized by uncertainty and non-munificence.

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Influence of Family Involvement on Family Firm Internationalization: The Moderating Effects of Industrial and Institutional Environments

Cited by 10 publications

References 47 publications

Family ownership and the export performance of SMEs: the moderating role of financial constraints and flexibility

Family ownership and the export performance of SMEs: the moderating role of financial constraints and flexibility

The Origin of Proactive Environmental Corporate Social Responsibility (ECSR) of Large Firms: Institutional Embeddedness—Driven, Family Involvement-Promoted, or Resource-Dependent?

How do group affiliates benefit from dual legitimacy to acquire resources in emerging economies? Evidence from China

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