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Unveiling the global focus-performance relationship in family firms: The role of the board of directors

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  • Bauweraerts, Jonathan
  • Arzubiaga, Unai
  • Diaz-Moriana, Vanessa

Abstract

Drawing on the resource-based view, this study examines how board composition and board tasks affect the relationship between the firm’s global focus and performance in private family firms. Based on a sample of 234 Belgian private family firms, our empirical analyses reveal that nonfamily involvement in the board attenuates the negative relationship between the firm’s global focus and performance. Furthermore, our results show that the global focus-performance link turns positive at higher levels of board networking and advisory tasks, whereas board control task has no significant effect. Ultimately, these findings underscore the board of directors as a key governance contingency, highlighting its important role in overcoming the challenges of global expansion in private family firms.

Suggested Citation

  • Bauweraerts, Jonathan & Arzubiaga, Unai & Diaz-Moriana, Vanessa, 2022. "Unveiling the global focus-performance relationship in family firms: The role of the board of directors," International Business Review, Elsevier, vol. 31(4).
    • Handle: RePEc:eee:iburev:v:31:y:2022:i:4:s0969593122000051
    DOI: 10.1016/j.ibusrev.2022.101977
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