IDEAS home Printed from https://ideas.repec.org/a/cup/maorev/v11y2015i04p645-678_00.html
   My bibliography  Save this article

Internationalization and Performance of Chinese Family Firms: The Moderating Role of Corporate Governance

Author

Listed:
  • Lu, Jane Wenzhen
  • Liang, Xueji
  • Shan, Mengmeng
  • Liang, Xiaoya

Abstract

This study investigates the differential effects of internationalization on two dimensions of family firms’ performance: growth and profitability. Drawing on the contingency theory, we argue that the successful implementation of internationalization strategy requires an appropriate organization structure, which is usually absent in Chinese family firms. To the extent that such a structure is established, these firms can realize greater benefits from internationalization. From a sample of 225 family firms in China, our predictions receive empirical support. We find that internationalization has a positive impact on growth but a negative impact on profitability. The negative internationalization–firm profitability relationship highlights the challenges internationalizing Chinese family firms face. The positive moderating effect of corporate governance, a critical component of organization structure, underscores the need for appropriate corporate governance to support the implementation of strategy. The findings have important practical implications for the internationalization of Chinese family firms.

Suggested Citation

  • Lu, Jane Wenzhen & Liang, Xueji & Shan, Mengmeng & Liang, Xiaoya, 2015. "Internationalization and Performance of Chinese Family Firms: The Moderating Role of Corporate Governance," Management and Organization Review, Cambridge University Press, vol. 11(4), pages 645-678, December.
    • Handle: RePEc:cup:maorev:v:11:y:2015:i:04:p:645-678_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1740877615000327/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. A. Rebecca Reuber, 2016. "An Assemblage–Theoretic Perspective on the Internationalization Processes of Family Firms," Entrepreneurship Theory and Practice, , vol. 40(6), pages 1269-1286, November.
    2. Yan Li & Neal M. Ashkanasy, 2019. "Risk adaptation and emotion differentiation: An experimental study of dynamic decision-making," Asia Pacific Journal of Management, Springer, vol. 36(1), pages 219-243, March.
    3. Benedict Valentine Arulanandam & Christo Selvan & Goh Xin Tong, 2023. "Critical Factors Influencing Firms' Risk-Taking Behaviour: CEO Characteristics and the Moderating Role of the Audit Committee," Central European Business Review, Prague University of Economics and Business, vol. 2023(5), pages 1-41.
    4. McGuinness, Paul B., 2021. "Board member age, stock seasoning and the evolution of capital structure in Chinese firms," International Business Review, Elsevier, vol. 30(3).
    5. Muhammad Zeeshan Fareed & Qin Su, 2022. "Project Governance and Project Performance: The Moderating Role of Top Management Support," Sustainability, MDPI, vol. 14(5), pages 1-13, February.
    6. Jean-Luc Arregle & Francesco Chirico & Liena Kano & Sumit K. Kundu & Antonio Majocchi & William S. Schulze, 2021. "Family firm internationalization: Past research and an agenda for the future," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(6), pages 1159-1198, August.
    7. Buckley, Peter J & Cui, Lin & Chen, Liang & Li, Yi & Choi, Yoona, 2023. "Following their predecessors’ journey? A review of EMNE studies and avenues for interdisciplinary inquiry," Journal of World Business, Elsevier, vol. 58(2).
    8. Mikel Alayo & Txomin Iturralde & Amaia Maseda & Gloria Aparicio, 2021. "Mapping family firm internationalization research: bibliometric and literature review," Review of Managerial Science, Springer, vol. 15(6), pages 1517-1560, August.
    9. Myriam Cano-Rubio & Guadalupe Fuentes-Lombardo & Valeriano Sanchez-Famoso, 2021. "Family involvement as influencer on family firm’s growth [L’influence de l’implication familière sur la croissance patronale]," Journal of International Entrepreneurship, Springer, vol. 19(4), pages 510-537, December.
    10. Huang, Yuanyuan & Xie, En & Wu, Zhan, 2021. "Portfolio characteristics of outward foreign direct investment and dynamic performance of emerging economy firms: An option portfolio perspective," International Business Review, Elsevier, vol. 30(4).
    11. Hafner, Cornelius & Pidun, Ulrich, 2022. "Getting family firm diversification right: A configurational perspective on product and international diversification strategies," Journal of Family Business Strategy, Elsevier, vol. 13(1).
    12. Cornelius Hafner, 2021. "Diversification in family firms: a systematic review of product and international diversification strategies," Review of Managerial Science, Springer, vol. 15(3), pages 529-572, April.
    13. Dou, Junsheng & Wu, Saisai & Fang, Hanqing, 2022. "Family involvement, family essence, and family-centered non-economic and economic goals in Chinese family firms: A replication study," Journal of Family Business Strategy, Elsevier, vol. 13(4).
    14. Sadeen Ghafoor & Weidong Huo & Man Wang & Yunjiang Geng & Muhammad Zulfiqar & Muhammad Usman Yousaf, 2024. "Unique types and innovation input of family firm CEOs: moderating role of managerial ability in Chinese listed firms," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    15. González, Carlos & González-Galindo, Ana, 2022. "The institutional context as a source of heterogeneity in family firm internationalization strategies: A comparison between U.S. and emerging market family firms," International Business Review, Elsevier, vol. 31(4).
    16. Wen-Ting Lin & Linda C. Wang, 2021. "Family firms, R&D, and internationalization: the stewardship and socio-emotional wealth perspectives," Asia Pacific Journal of Management, Springer, vol. 38(1), pages 91-119, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:maorev:v:11:y:2015:i:04:p:645-678_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/mor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.