IDEAS home Printed from https://ideas.repec.org/a/eee/eurman/v30y2012i1p47-56.html
   My bibliography  Save this article

Family ownership and internationalization processes: Internationalization pace, internationalization scope, and internationalization rhythm

Author

Listed:
  • Lin, Wen-Ting

Abstract

This paper examines the effects of the family ownership with respect to the processes of firm internationalization: internationalization pace, internationalization scope, and internationalization rhythm. Using longitudinal data (2000–2008) from 772 publicly listed firms in Taiwan, I find that firms opted for a (1) rapid pace, (2) a narrow scope, and (3) an irregular rhythm of internationalization when they were high level of the family ownership. These findings highlight that the family ownership has the significant influences on a firm’s internationalization processes. This research enriches the research that links family ownership and international business. The implications of these findings for future research are discussed.

Suggested Citation

  • Lin, Wen-Ting, 2012. "Family ownership and internationalization processes: Internationalization pace, internationalization scope, and internationalization rhythm," European Management Journal, Elsevier, vol. 30(1), pages 47-56.
    • Handle: RePEc:eee:eurman:v:30:y:2012:i:1:p:47-56
    DOI: 10.1016/j.emj.2011.10.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0263237311000739
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.emj.2011.10.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Musteen, Martina & Francis, John & Datta, Deepak K., 2010. "The influence of international networks on internationalization speed and performance: A study of Czech SMEs," Journal of World Business, Elsevier, vol. 45(3), pages 197-205, July.
    2. Villalonga, Belen & Amit, Raphael, 2006. "How do family ownership, control and management affect firm value?," Journal of Financial Economics, Elsevier, vol. 80(2), pages 385-417, May.
    3. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1351-1408.
    4. Michael Lubatkin & William S. Schulze & N Dino Richard, 2003. "Exploring the agency consequences of ownership dispersion among the directors of private family firms," Post-Print hal-02311676, HAL.
    5. Garry D. Bruton & David Ahlstrom & Johnny C. C. Wan, 2003. "Turnaround in East Asian firms: evidence from ethnic Overseas Chinese communities," Strategic Management Journal, Wiley Blackwell, vol. 24(6), pages 519-540, June.
    6. Timothy B. Palmer & Robert M. Wiseman, 1999. "Decoupling risk taking from income stream uncertainty: a holistic model of risk," Strategic Management Journal, Wiley Blackwell, vol. 20(11), pages 1037-1062, November.
    7. Jeroen Van Den Heuvel & Anita Van Gils & Wim Voordeckers, 2006. "Board Roles in Small and Medium‐Sized Family Businesses: performance and importance," Corporate Governance: An International Review, Wiley Blackwell, vol. 14(5), pages 467-485, September.
    8. Harry G. Barkema & Oleg Shvyrkov, 2007. "Does top management team diversity promote or hamper foreign expansion?," Strategic Management Journal, Wiley Blackwell, vol. 28(7), pages 663-680, July.
    9. Amar Gande & Christoph Schenzler & Lemma W Senbet, 2009. "Valuation effects of global diversification," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1515-1532, December.
    10. Wagner, Hardy, 2004. "Internationalization speed and cost efficiency: evidence from Germany," International Business Review, Elsevier, vol. 13(4), pages 447-463, August.
    11. Jonas Gabrielsson & Henrik Winlund, 2000. "Boards of directors in small and medium-sized industrial firms: examining the effects of the board's working style on board task performance," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 12(4), pages 311-330, October.
    12. Hicheon Kim & Heechun Kim & Peggy M. Lee, 2008. "Ownership Structure and the Relationship Between Financial Slack and R&D Investments: Evidence from Korean Firms," Organization Science, INFORMS, vol. 19(3), pages 404-418, June.
    13. Michael Lubatkin & William S. Schulze & Richard N. Dino, 2003. "Exploring the agency consequences of ownership dispersion among the directors of private family firms," Post-Print hal-02276698, HAL.
    14. Rafael La Porta & Florencio Lopez‐De‐Silanes & Andrei Shleifer, 1999. "Corporate Ownership Around the World," Journal of Finance, American Finance Association, vol. 54(2), pages 471-517, April.
    15. Igor Filatotchev & Johannes Stephan & Björn Jindra, 2008. "Ownership structure, strategic controls and export intensity of foreign-invested firms in transition economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(7), pages 1133-1148, October.
    16. Sherman, Hugh D. & Kashlak, Roger J. & Joshi, Maheshkumar P., 1998. "The effect of the board and executive committee characteristics on the degree of internationalization," Journal of International Management, Elsevier, vol. 4(4), pages 311-335, December.
    17. Anderson, Ronald C & Reeb, David M, 2003. "Founding-Family Ownership, Corporate Diversification, and Firm Leverage," Journal of Law and Economics, University of Chicago Press, vol. 46(2), pages 653-684, October.
    18. Roger Strange & Igor Filatotchev & Trevor Buck & Mike Wright, 2009. "Corporate Governance and International Business," Management International Review, Springer, vol. 49(4), pages 395-407, September.
    19. Stijn Claessens & Simeon Djankov & Joseph P. H. Fan & Larry H. P. Lang, 2002. "Disentangling the Incentive and Entrenchment Effects of Large Shareholdings," Journal of Finance, American Finance Association, vol. 57(6), pages 2741-2771, December.
    20. Shaker Zahra & Donald Neubaum & Lucia Naldi, 2007. "The Effects of Ownership and Governance on SMEs’ International Knowledge-based Resources," Small Business Economics, Springer, vol. 29(3), pages 309-327, October.
    21. Zahra, Shaker A., 2003. "International expansion of U.S. manufacturing family businesses: the effect of ownership and involvement," Journal of Business Venturing, Elsevier, vol. 18(4), pages 495-512, July.
    22. Jess H. Chua & James J. Chrisman & Erich B. Bergiel, 2009. "An Agency Theoretic Analysis of the Professionalized Family Firm," Entrepreneurship Theory and Practice, , vol. 33(2), pages 355-372, March.
    23. Steen Thomsen & Torben Pedersen, 2000. "Ownership structure and economic performance in the largest european companies," Strategic Management Journal, Wiley Blackwell, vol. 21(6), pages 689-705, June.
    24. Marian V Jones & Nicole E Coviello, 2005. "Internationalisation: conceptualising an entrepreneurial process of behaviour in time," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(3), pages 284-303, May.
    25. Margarethe F. Wiersema & Harry P. Bowen, 2008. "Corporate diversification: the impact of foreign competition, industry globalization, and product diversification," Strategic Management Journal, Wiley Blackwell, vol. 29(2), pages 115-132, February.
    26. Catherine M. Daily & Dan R. Dalton, 1993. "Board of Directors Leadership and Structure: Control and Performance Implications," Entrepreneurship Theory and Practice, , vol. 17(3), pages 65-81, April.
    27. Chandra S. Mishra & Daniel L. Mcconaughy, 1999. "Founding Family Control and Capital Structure: The Risk of Loss of Control and the Aversion to Debt," Entrepreneurship Theory and Practice, , vol. 23(4), pages 53-64, July.
    28. William S. Schulze & Michael H. Lubatkin & Richard N. Dino & Ann K. Buchholtz, 2001. "Agency Relationships in Family Firms: Theory and Evidence," Organization Science, INFORMS, vol. 12(2), pages 99-116, April.
    29. Claessens, Stijn & Djankov, Simeon & Lang, Larry H. P., 2000. "The separation of ownership and control in East Asian Corporations," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 81-112.
    30. Olof Brunninge & Mattias Nordqvist & Johan Wiklund, 2007. "Corporate Governance and Strategic Change in SMEs: The Effects of Ownership, Board Composition and Top Management Teams," Small Business Economics, Springer, vol. 29(3), pages 295-308, October.
    31. Chi-Nien Chung & Xiaowei Luo, 2008. "Institutional Logics or Agency Costs: The Influence of Corporate Governance Models on Business Group Restructuring in Emerging Economies," Organization Science, INFORMS, vol. 19(5), pages 766-784, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Weiping Liu & Haibin Yang & Guangxi Zhang, 2012. "Does family business excel in firm performance? An institution-based view," Asia Pacific Journal of Management, Springer, vol. 29(4), pages 965-987, December.
    2. Mofir, 2020. "non disponibile," Mo.Fi.R. Working Papers 159, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    3. Nieves Lidia Díaz‐Díaz & Pedro J. García‐Teruel & Pedro Martínez‐Solano, 2023. "Private family firms, generations and bank debt," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(3), pages 3043-3075, September.
    4. Luis R. Gomez‐Mejia & Marianna Makri & Martin Larraza Kintana, 2010. "Diversification Decisions in Family‐Controlled Firms," Journal of Management Studies, Wiley Blackwell, vol. 47(2), pages 223-252, March.
    5. Christopher Hansen & Joern Block & Matthias Neuenkirch, 2020. "Family Firm Performance Over The Business Cycle: A Meta‐Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 34(3), pages 476-511, July.
    6. Michael Carney & Marc Van Essen & Eric R. Gedajlovic & Pursey P.M.A.R. Heugens, 2015. "What do we know about Private Family Firms? A Meta–Analytical Review," Entrepreneurship Theory and Practice, , vol. 39(3), pages 513-544, May.
    7. Cucculelli, Marco & Peruzzi, Valentina, 2020. "Innovation over the industry life-cycle. Does ownership matter?," Research Policy, Elsevier, vol. 49(1).
    8. Schmid, Thomas & Ampenberger, Markus & Kaserer, Christoph & Achleitner, Ann-Kristin, 2010. "Controlling shareholders and payout policy: do founding families have a special 'taste for dividends'?," CEFS Working Paper Series 2010-01, Technische Universität München (TUM), Center for Entrepreneurial and Financial Studies (CEFS).
    9. Kuo-Pin Yang & Gavin M. Schwarz, 2016. "A Multilevel Analysis of the Performance Implications of Excess Control in Business Groups," Organization Science, INFORMS, vol. 27(5), pages 1219-1236, October.
    10. Audretsch, David B. & Hülsbeck, Marcel & Lehmann, Erik E., 2013. "Families as active monitors of firm performance," Journal of Family Business Strategy, Elsevier, vol. 4(2), pages 118-130.
    11. 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.
    12. Karaevli, Ayse & Yurtoglu, B. Burcin, 2021. "Family ownership, market development, and internationalization of Turkish business groups (1925-2017)," Journal of World Business, Elsevier, vol. 56(6).
    13. Suveera Gill & Parmjit Kaur, 2015. "Family Involvement in Business and Financial Performance: A Panel Data Analysis," Vikalpa: The Journal for Decision Makers, , vol. 40(4), pages 395-420, December.
    14. Sacristán-Navarro, María & Gómez-Ansón, Silvia & Cabeza-García, Laura, 2011. "Large shareholders' combinations in family firms: Prevalence and performance effects," Journal of Family Business Strategy, Elsevier, vol. 2(2), pages 101-112, June.
    15. Feito-Ruiz, Isabel & Menéndez-Requejo, Susana, 2022. "Debt maturity in family firms: Heterogeneity across countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 81(C).
    16. San Martin-Reyna, J.M. & Duran-Encalada, Jorge A., 2012. "The relationship among family business, corporate governance and firm performance: Evidence from the Mexican stock exchange," Journal of Family Business Strategy, Elsevier, vol. 3(2), pages 106-117.
    17. Geoffrey Martin & Luis R. Gómez–Mejía & Pascual Berrone & Marianna Makri, 2017. "Conflict between Controlling Family Owners and Minority Shareholders: Much Ado about Nothing?," Entrepreneurship Theory and Practice, , vol. 41(6), pages 999-1027, November.
    18. Xiaowei Rose Luo & Chi-Nien Chung, 2013. "Filling or Abusing the Institutional Void? Ownership and Management Control of Public Family Businesses in an Emerging Market," Organization Science, INFORMS, vol. 24(2), pages 591-613, April.
    19. Igor Filatotchev & Yung-Chih Lien & Jenifer Piesse, 2005. "Corporate Governance and Performance in Publicly Listed, Family-Controlled Firms: Evidence from Taiwan," Asia Pacific Journal of Management, Springer, vol. 22(3), pages 257-283, September.
    20. Nhung Hong LE, 2017. "The impact of family ownership status on determinants of leverage. Empirical evidence from South East Asia," Working Papers of LaRGE Research Center 2017-09, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.

    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:eee:eurman:v:30:y:2012:i:1:p:47-56. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/description#description .

    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.