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Time to BRIC it? Internationalization of European family firms in Europe, North America and the BRIC countries

Author

Listed:
  • Vivien D. Procher

    (Jackstaedt Center of Entrepreneurship and Innovation Research, Schumpeter School of Business and Economics, University of Wuppertal)

  • Diemo Urbig

    (Jackstaedt Center of Entrepreneurship and Innovation Research, Schumpeter School of Business and Economics, University of Wuppertal)

  • Christine Volkmann

    (Jackstaedt Center of Entrepreneurship and Innovation Research, Schumpeter School of Business and Economics, University of Wuppertal)

Abstract

For a sample of 1243 European companies, we analyse the link between firm type and foreign direct investment (FDI) locations. We find substantial empirical evidence that being a family firm does not only affect the overall propensity for FDI but that this effect is also specific to target regions. Overall, family firms invest more than managerial-led firms, particularly in Europe and North America. Furthermore the BRIC countries Brazil, Russia, India and China do not constitute a homogenous attractiveness cluster for FDI.

Suggested Citation

  • Vivien D. Procher & Diemo Urbig & Christine Volkmann, 2013. "Time to BRIC it? Internationalization of European family firms in Europe, North America and the BRIC countries," Schumpeter Discussion Papers sdp13004, Universitätsbibliothek Wuppertal, University Library.
    • Handle: RePEc:bwu:schdps:sdp13004
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    References listed on IDEAS

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    1. Bruce Blonigen, 2005. "A Review of the Empirical Literature on FDI Determinants," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 33(4), pages 383-403, December.
    2. Laura Alfaro & Andrew Charlton, 2009. "Intra-industry Foreign Direct Investment," American Economic Review, American Economic Association, vol. 99(5), pages 2096-2119, December.
    3. Gabor Hunya & Roman Stöllinger, 2009. "Foreign Direct Investment Flows between the EU and the BRICs," wiiw Research Reports 358, The Vienna Institute for International Economic Studies, wiiw.
    4. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
    5. Susana Assunção & Rosa Forte & Aurora A. C. Teixeira, 2011. "Location Determinants Of Fdi: A Literature Review," FEP Working Papers 433, Universidade do Porto, Faculdade de Economia do Porto.
    6. Kontinen, Tanja & Ojala, Arto, 2010. "The internationalization of family businesses: A review of extant research," Journal of Family Business Strategy, Elsevier, vol. 1(2), pages 97-107, June.
    7. Fazia Pusterla & Laura Resmini, 2005. "Where do foreign firms locate in transition Countries? An empirical investigation," ISLA Working Papers 20, ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy, revised Sep 2005.
    8. 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.
    9. Carlos Benavides-Velasco & Cristina Quintana-García & Vanesa Guzmán-Parra, 2013. "Trends in family business research," Small Business Economics, Springer, vol. 40(1), pages 41-57, January.
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    Cited by:

    1. Arindam Mondal & Somnath Lahiri, 2024. "The Role of Inward FDI and Family Firm Heterogeneity on Foreign Location Choice: Evidence from India," Management International Review, Springer, vol. 64(2), pages 245-278, April.
    2. Jean-Luc Arregle & Francesco Chirico & Liena Kano & Sumit K. Kundu & Antonio Majocchi & William S. Schulze, 2021. "Family firm internationalization: Past research and an agenda for the future," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(6), pages 1159-1198, August.
    3. Steinberg, Philip J. & Urbig, Diemo & Procher, Vivien D. & Volkmann, Christine, 2021. "Knowledge transfer and home-market innovativeness: A comparison of emerging and advanced economy multinationals," Journal of International Management, Elsevier, vol. 27(4).
    4. Kalhor Elham, 2024. "Institutional effects on family business internationalization: A systematic review," ZFW – Advances in Economic Geography, De Gruyter, vol. 68(1), pages 41-62.
    5. Mikel Alayo & Txomin Iturralde & Amaia Maseda & Gloria Aparicio, 2021. "Mapping family firm internationalization research: bibliometric and literature review," Review of Managerial Science, Springer, vol. 15(6), pages 1517-1560, August.
    6. Bornhausen, Anna Maria, 2022. "Conceptualizing cross-country analyses of family firms: A systematic review and future research agenda," International Business Review, Elsevier, vol. 31(4).

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    Keywords

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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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