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A model for building capabilities among family-controlled multinational corporations in emerging markets

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  • Ozturk, Ayse
  • Liu, Steven Y.H.

Abstract

This study examines the growth strategies of Family-Controlled Emerging Market Multinational Corporations (FEMNCs) from a portfolio entrepreneurship perspective. While previous research on family multinationals has focused on advanced economies, this paper fills a significant gap by examining how FEMNCs develop capabilities and pursue diversification. Drawing on the resource-based view, we propose that FEMNCs develop four interconnected capabilities: agility in decision-making, risk allocation, opportunity exploitation, and business model innovation. These capabilities are influenced by the interaction between family governance and emerging-market conditions. Through a comparative analysis of 200 multinational corporations, we find that FEMNCs demonstrate higher levels of diversification and conglomerate formation than their counterparts. This study contributes to the family business literature by contextualizing the development of capabilities within emerging market ecosystems. It also extends the concept of portfolio entrepreneurship to FEMNCs, offering a novel typology for understanding multinational diversification.

Suggested Citation

  • Ozturk, Ayse & Liu, Steven Y.H., 2026. "A model for building capabilities among family-controlled multinational corporations in emerging markets," Journal of Business Research, Elsevier, vol. 205(C).
    • Handle: RePEc:eee:jbrese:v:205:y:2026:i:c:s0148296325007155
    DOI: 10.1016/j.jbusres.2025.115892
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