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Internationalization of family firms: The effect of ownership and governance

  • C. Mitter
  • , C. Duller
  • , B. Feldbauer-Durstmüller
  • , S. Kraus
  • Institute of Management Control and Consulting, Johannes Kepler University Linz
  • Institute of Applied Statistics, Johannes Kepler University Linz
  • Chair of Entrepreneurship, School of Economics (USE), Utrecht University
  • University of Liechtenstein

Research output: Contribution to journalArticlepeer-review

Abstract

Despite family firm's dominant role in economies worldwide, there is little empirical knowledge on their internationalization. Drawing on a sample of Austrian firms, this paper investigates the impact of family influence and various governance factors on internationalization. The findings reveal an inverted U-shaped relationship between family influence and internationalization. Family firms with medium family influence are the most internationally active companies. This indicates that concerning internationalization the advantages of being a family firm are highest when the family's ownership share and involvement in management and governance boards is not too extensive. Additionally, neither the incumbent generation, nor the level of non-family executives in the management board, nor the existence of a supervisory board has a significant influence on going international. Since advisory boards seem to foster internationalization, they might be an adjuvant means of equipping family firms with the necessary capabilities, know-how and contacts to operate internationally. © 2012 Springer-Verlag.
Original languageEnglish
Pages (from-to)1-28
Number of pages28
JournalReview of Managerial Science
Volume8
Issue number1
DOIs
Publication statusPublished - 2012

Keywords

  • Advisory board
  • Family firms
  • Family influence
  • Internationalization
  • Non-family managers
  • Supervisory board

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