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Growth and internationalisation of family businesses

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  • Susana Menendez-Requejo

Abstract

This study analyses family businesses' growth and internationalisation decisions, examining if being a family firm determines differences in these strategies. According to the Resources and Capabilities Theory, family firms can have limitations for internationalisation in their financial and human resources. On the other hand, the Agency Theory and the Altruism Perspective establish that altruism in family firms can drive their foreign strategies, facilitating them. Moreover, family business generation is one characteristic, specific for family firms, that can influence their strategic decisions. An empirical analysis is developed for the Spanish Family Firms in 2001 and 2002, with the main conclusion being that we do not find predetermined limits nor advantages in the foreign growth of Spanish Family Firms, with size and second family generations being the main determinants of internationalisation.

Suggested Citation

  • Susana Menendez-Requejo, 2005. "Growth and internationalisation of family businesses," International Journal of Globalisation and Small Business, Inderscience Enterprises Ltd, vol. 1(2), pages 122-133.
    • Handle: RePEc:ids:ijgsbu:v:1:y:2005:i:2:p:122-133
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    Citations

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    Cited by:

    1. Andrea Calabrò & Emiliano Di Carlo, 2009. "The Role of IPO in Internationalization Process of Family Business. The Italian Case of the Burani Family. Is it a Black Swan?," DSI Essays Series, DSI - Dipartimento di Studi sull'Impresa, vol. 9.
    2. Ali-Yrkkö, Jyrki & Pajarinen, Mika & Rouvinen, Petri & Ylä-Anttila, Pekka, 2007. "Family Businesses and Globalization in Finland," Discussion Papers 1080, The Research Institute of the Finnish Economy.
    3. Evila Piva & Cristina Rossi-Lamastra & Alfredo De Massis, 2013. "Family firms and internationalization: An exploratory study on high-tech entrepreneurial ventures," Journal of International Entrepreneurship, Springer, vol. 11(2), pages 108-129, June.
    4. Marta Pérez-Pérez & María Concepción López-Férnandez & María Obeso, 2019. "Knowledge, Renewal and Flexibility: Exploratory Research in Family Firms," Administrative Sciences, MDPI, vol. 9(4), pages 1-18, November.
    5. Metsola, Jaakko & Leppäaho, Tanja & Paavilainen-Mäntymäki, Eriikka & Plakoyiannaki, Emmanuella, 2020. "Process in family business internationalisation: The state of the art and ways forward," International Business Review, Elsevier, vol. 29(2).
    6. Islam, Nazrul & Wang, Qidong & Marinakis, Yorgos & Walsh, Steven, 2022. "Family enterprise and technological innovation," Journal of Business Research, Elsevier, vol. 147(C), pages 208-221.

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