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Internationalization In Taiwanese Family Firms

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  • Hsiang-Lan Chen

Abstract

This paper studies the corporate internationalization decision of family firms and the effect of family ownership on internationalization. Using a panel data set of manufacturing firms listed on the Taiwan Stock Exchange during 2000–2007, the empirical results indicate that internationalization is positively and significantly related to family firms and family ownership. The findings suggest that, compared with non-family firms, family firms are more likely to internationalize. Additionally, compared with firms with lower family ownership, firms with higher family ownership are more likely to go international. The evidence is consistent with the argument that family firms may confer some unique features, and these features enable them to undertake risky, but profitable, internationalization.

Suggested Citation

  • Hsiang-Lan Chen, 2011. "Internationalization In Taiwanese Family Firms," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 5(4), pages 15-23.
    • Handle: RePEc:ibf:gjbres:v:5:y:2011:i:4:p:15-23
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    References listed on IDEAS

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    1. Ho‐Uk Lee & Jong‐Hun Park, 2008. "The Influence of Top Management Team International Exposure on International Alliance Formation," Journal of Management Studies, Wiley Blackwell, vol. 45(5), pages 961-981, July.
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    5. 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.
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    7. Wenyi Chu, 2009. "The influence of family ownership on SME performance: evidence from public firms in Taiwan," Small Business Economics, Springer, vol. 33(3), pages 353-373, October.
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    Cited by:

    1. Sami Basly & Paul-Laurent Saunier, 2020. "Familiness, socio-emotional goals and the internationalization of French family SMEs," Journal of International Entrepreneurship, Springer, vol. 18(3), pages 270-311, September.
    2. Kao, Ming-Sung & Kuo, Anthony, 2017. "The effect of uncertainty on FDI entry mode decisions: The influence of family ownership and involvement in the board of directors," Journal of Family Business Strategy, Elsevier, vol. 8(4), pages 224-236.
    3. Basly Sami, 2015. "Family Involvement in the Firm and Exports in the Family SME: Is the Manager’s International Orientation Influential?," Journal of Intercultural Management, Sciendo, vol. 7(3), pages 69-99, September.
    4. Myriam Cano‐Rubio & Rosa Lombardi & Guadalupe Fuentes‐Lombardo & Pedro Núñez‐Cacho, 2021. "Familiness, business strategy and stakeholder engagement: The internationalisation of Spanish olive oil mills," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4258-4280, December.
    5. Rosalia Santulli & Mariateresa Torchia & Andrea Calabrò & Carmen Gallucci, 2019. "Family ownership concentration and firm internationalization: integrating principal-principal and socioemotional wealth perspectives," Journal of International Entrepreneurship, Springer, vol. 17(2), pages 220-248, June.

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    More about this item

    Keywords

    Family firms; family ownership; family board of directors; internationalization.;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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