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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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  • Daniele Cerrato

    ()
    (DISCE, Università Cattolica)

  • Mariacristina Piva

    ()
    (DISCE, Università Cattolica)

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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Bibliographic 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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Web page: http://www.unicatt.it/Dipartimenti/DISES
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Keywords: internationalization; SMEs; export; family-based management;

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Cited by:
  1. Giorgia Giovannetti & Enrico Marvasi & Marco Sanfilippo, 2014. "Supply Chains and the Internalization of SMEs: Evidence from Italy," RSCAS Working Papers 2014/62, European University Institute.
  2. Musso, Fabio & Francioni, Barbara, 2009. "Foreign markets entry mode decision for SMEs. Key factors and role of industrial districts," MPRA Paper 32153, University Library of Munich, Germany.
  3. Mitja Ruzzier & Jana Hojnik & Aleš Lipnik, 2013. "Relationship between Innovation and Internationalization of Slovenian Internationalized Companies," MIC 2013: Industry, Science and Policy Makers for Sustainable Future; Proceedings of the 14th International Conference, Koper, 21–23 November 2013 [Selected Papers], University of Primorska, Faculty of Management Koper.

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