The moderator effect of the family business protocol on the financial performance of born globals firms: A trajectories analysis

Born global firms (BGFs) face unique challenges in achieving financial stability due to their rapid internationalization and resource constraints. While family-owned BGFs may benefit from long-term orientation and family firm protocol structures, the impact of a family business protocol (FBP) on their firm’s performance remains underexplored. This study investigates the triple moderating effect of FBP on the firm performance trajectories of BGFs, considering how market uncertainty, formal family firm protocol mechanisms shape strategic decision making (Absorptive capacity) and firm performance over time. With a longitudinal approach, we analyze a dataset of family owned BGFs across multiple industries, applying trajectory analysis to assess variations in performance under different family firm protocol structures. Our findings suggest that the presence of an FBP improve financial resilience through reducing decision making conflicts and at the same time increasing strategic consistency, particularly in firms operating in volatile environment in international markets. However, excessive formalization may also impose rigidity, potentially limiting adaptability in highly dynamic environments. In this way this study contributes to the literature on international entrepreneurship and family business by offering new insights into the role of formal family firm protocols in shaping the financial trajectories of BGFs. The findings offer valuable implications for family business owners, policymakers, and scholars seeking to optimize family firm governance structures for sustained financial growth in globally oriented firms.