The impact of succession on family business internationalisation

Abstract

Purpose – The purpose of this paper is to examine the successor's perceptions of the major objective and subjective factors as well as networks that facilitate or inhibit the process of internationalisation of entrepreneurial family firms. Design/methodology/approach – Based on a qualitative methodological approach, the current study relies on case study evidence from a sample of six mature entrepreneurial family firms operating in different sectors. Findings – Relying on data collected, this study found that the perception of foreign market opportunities; international vision; successor's proactivity; innovative spirit and specific technical knowledge are relevant variables that initiate the process of internationalisation of a family firm within the context of (post-) succession. By contrast, the study did not find high evidence of the importance of speaking a foreign language and educational background. The study also confirmed that a disrupted process, such as succession, may re-position a mature domestic family firm in international markets. Research limitations/implications – A major limitation of this study relates to the sample size. Interpretation of these findings and their generalisation should therefore, be made with caution. In terms of future recommendations, an area that deserves particular attention relates to the development and transfer of social capital within family firms. Originality/value – This study attempts to fill a gap in the literature, and it particularly tries to understand the successors’ perceptions regarding interrelationships between succession and internationalisation. The findings provide valuable insights for policy makers and managers.

Behind the internationalization of family SMEs: A strategy tripod synthesis

“…We identify three papers devoted to generation, succession, and internationalization in family SMEs. Meneses, Coutinho, and Pinho (2014: 27) view succession as “the passing of the leadership baton from the founder–owner to a successor who will either be a family member or a nonfamily member; that is, a ‘professional manager’.” Shi et al (2019) identify three distinct intergenerational succession patterns. They conclude that incumbent‐successor relationships that underlie succession influence the relationship between succession across generations and internationalization strategies of family SMEs.…”

“…In analyzing family SME internationalization, scholars have utilized a wide variety of institutional contexts. These include Australia (Graves & Shan, 2014), Bulgaria (Marinova & Marinov, 2017), China (Shi et al, 2019), Finland (Segaro et al, 2014), France (Sirmon et al, 2008), Germany (Kraus, Ambos, Eggers, & Cesinger, 2015), Italy (D'Angelo et al, 2016), Malaysia (Senik, Scott‐Ladd, Entrekin, & Adham, 2011), Norway (Calabrò et al, 2009), Spain (Sánchez‐Marín, Pemartín, & Monreal‐Pérez, 2020), Portugal (Meneses et al, 2014), Singapore (Scholes et al, 2016), Sweden (Arregle et al, 2012), Taiwan (Chen et al, 2014; Hsu et al, 2013), and the United States (Davis & Harveston, 2000). Several studies use multicountry samples (Cesinger et al, 2016; Eddleston et al, 2019b; Hennart et al, 2019; Majocchi et al, 2018).…”

Do family-managed and non-family-managed firms internationalize differently?

“…Under these circumstances, the professionalization of management represents a breaking point; in some situations, domestic firms are born again as global firms (Bell et al, 2001;Meneses et al, 2014), and in others, they change their pattern of internationalization (see fig. 1).…”

Diversification of export territories of family businesses as a tool of their further development

“…The issues surrounding the entry of family businesses to foreign markets is not a new one on foreign markets in countries where family businesses have a long established tradition. It has been thoroughly analyzed historically and currently by a number of researchers focusing on the influence of the generation newly entering the management of family businesses on the change of their strategic management (Andersen, 1993;Sanders & Carpenter, 1998;Bell, McNaughton, & Young, 2001; Meneses, Coutinho, & Pinho, 2014). Over the long term, the individual generations create a positive brand image, transfer knowledge and know-how, verify the quality of products on offer, diversify export territory, and ensure the growth of the family business (Abel & Seamus, 2017).…”