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The Internationalization of Small and Medium-sized Enterprises: the Effect of Family Management, Human Capital and Foreign Ownership

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Author Info
Daniele Cerrato () (DISCE, Università Cattolica)
Mariacristina Piva () (DISCE, Università Cattolica)

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Abstract

This paper focuses on factors affecting the internationalization of SMEs. Based on both international businessand and family business literatures, we develop three hypotheses that relate the internationalization of SMEs’ to familymanagement,human capital, and presence of foreign shareholders. Relying on data from a large sample of Italian manufacturing SMEs, we find that involvement of the owning family in management negatively influences export propensity but, once the choice to gointernational has been made, the degree of internationalization of the firm is not significantly different with respect to the composition of the management team. Our results also show that the level of human capital and the presence of foreign shareholders in the SME positively influence both export propensity and export intensity. Size and age of the firm as well as industry characteristics are included in the empirical analysis as control variables.

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Publisher Info
Paper provided by Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) in its series DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali with number dises0748.

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Length: 25 pages
Date of creation: Oct 2007
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Publication status: Published in Review of Economics, Month aaaa, pages nn1-nn2
Handle: RePEc:ctc:serie2:dises0748

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Related research
Keywords: internationalization SMEs export family-based management

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Find related papers by JEL classification:
L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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  1. Westhead, Paul & Wright, Mike & Ucbasaran, Deniz, 2001. "The internationalization of new and small firms: A resource-based view," Journal of Business Venturing, Elsevier, vol. 16(4), pages 333-358, July. [Downloadable!] (restricted)
  2. Aldrich, Howard E. & Cliff, Jennifer E., 2003. "The pervasive effects of family on entrepreneurship: toward a family embeddedness perspective," Journal of Business Venturing, Elsevier, vol. 18(5), pages 573-596, September. [Downloadable!] (restricted)
  3. Phillips McDougall, Patricia & Shane, Scott & Oviatt, Benjamin M., 1994. "Explaining the formation of international new ventures: The limits of theories from international business research," Journal of Business Venturing, Elsevier, vol. 9(6), pages 469-487, November. [Downloadable!] (restricted)
  4. Mohnen, Pierre & Roller, Lars-Hendrik, 2005. "Complementarities in innovation policy," European Economic Review, Elsevier, vol. 49(6), pages 1431-1450, August. [Downloadable!] (restricted)
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  5. Leonidas C Leonidou & Constatine S Katsikeas, 1996. "The Export Development Process: An Integrative Review of Empirical Models," Journal of International Business Studies, Palgrave Macmillan Journals, vol. 27(3), pages 517-551, September. [Downloadable!] (restricted)
  6. Yakov Amihud & Baruch Lev, 1981. "Risk Reduction as a Managerial Motive for Conglomerate Mergers," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 605-617, Autumn. [Downloadable!] (restricted)
  7. Piva, Mariacristina & Santarelli, Enrico & Vivarelli, Marco, 2005. "The skill bias effect of technological and organisational change: Evidence and policy implications," Research Policy, Elsevier, vol. 34(2), pages 141-157, March. [Downloadable!] (restricted)
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  8. Mariacristina Piva & Marco Vivarelli, 2007. "Corporate Skills as an Ex-Ante Incentive to R&D Investment," IZA Discussion Papers 2562, Institute for the Study of Labor (IZA). [Downloadable!]
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