Ownership and the Internationalization of Small Firms (original) (raw)
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Impact of ownership on the international involvement of SMEs
Journal of International Business Studies, 2006
This paper analyses the relationship between the internationalisation strategies of SMEs and types of ownership. Different types of ownership affect firms, and this in turn will influence the internationalisation strategy adopted. Using a sample of Spanish SMEs, our results show that internationalisation is negatively related to family ownership and positively related to corporate ownership. We have also observed that the presence of a corporate blockholder in family firms encourages internationalisation. These results support the idea that ownership type influences the decision to internationalise.
internationalization pathways among family-owned SMEs
Purpose – To increase understanding of the internationalization of family firms; to investigate how the framework by Bell et al. (2003) on the internationalization patterns of firms could explain the internationalization pathways taken by family-owned SMEs; to identify typical patterns and features in the various pathways taken by family-owned SMEs. Design/methodology/approach – This paper reports findings from an in-depth multiple case study with eight Finnish family-owned SMEs. Findings – The ownership structure had the most important role in defining the internationalization pathways followed by the family-owned SMEs: a fragmented ownership structure led to traditional internationalization pathway whereas a concentrated ownership base led to born global or born-again global pathways. Practical implications – Family entrepreneurs should carefully consider the division of ownership and seek to build new relationships in foreign markets in addition to their primary cooperators. Originality/value - In this study, we extend the integrative model of small firm internationalization by Bell et al. (2003) toward family-owned SMEs. Secondly, this study highlights the most important dimensions in the different internationalization pathways of family SMEs. Thirdly, it integrates the ownership dimension within discussion on differing internationalization pathways. Fourthly, it utilizes a family business specific perspective (the stewardship perspective), in order to understand the specific features of internationalization among family SMEs, and also how these features differ between family SMEs and other firms.
Decision-makers' Risk Perception in the Internationalisation of Small and Medium-Sized Firms
2016
This study examines the risk perception of decision-makers in small and medium sized enterprises (SMEs) and the factors underlying these perceptions in the process of internationalisation of their firms. While risk perception has been identified as a potential predictor variable in internationalisation research, very little work has been done exploring the factors and processes that shape decision-makers' perception of risk. A qualitative interview-based approach was adopted by collecting data from 32 Danish SMEs operating in four different industries. Findings suggest that while risk awareness exists, decision-makers do not perceive internationalisation as risky behaviour. Findings highlight the importance of decision-makers' background, including cognitive and psychological characteristics, such as self-efficacy and locus of control, and their experiences in explaining risk perceptions associated with firm internationalisation.
Journal of Management and Governance, 2007
The transition of ten former COMECON countries to the EU has offered a golden opportunity to study how SMEs from emerging markets internationalize to mature markets. How have they internationalized? How do firms get out of the trap of low-cost production and low technology content to avoid to get out-competed by new producers of low-cost products? The internationalization of these firms is compared to exporters from mature European markets. The paper reports on research conducted between 2004 and 2007 on SMEs in the Baltic Sea region with researchers participating from eight countries in this region. The research contributes to international process theory by developing the network aspect of the entry node, the entry process, and the entry mode.
Small Business Entrepreneurship and the Internal Determinants of International Behaviour
Proceedings of the 8th Global Conference on Business & Economics, ISBN 978-0-9742114-5-9, 2008
The role of Italian small and medium enterprises (SMEs) in the international economic environment has attracted many scholars for its peculiarities. In particular, their development and longevity paths are critical to a better understanding of the main characteristics of the global economy. Although they manage many of the same issues of other companies, they must also face specific problems, mainly related to their status and to the entrepreneurial behaviour of the firm owners. Nevertheless, few empirical studies have stressed the importance of human resources and entrepreneurial behaviour for the performance and growth of Italian SMEs, especially in the international environment, where keen competition and difficulties of reaching the necessary resources are often insuperable barriers for SMEs. The main goal of this study is to suggest a “holistic” model, in order to analyze the relations between the internal determinants of the internationalization process of SMEs, by integrating the individual-level with the firm-level features. The analysis, based on the theories of individual cognitive aspect, international expansion and business strategy, explores the process of internationalization of SMEs from a cognitive perspective. Therefore, the study aims to provide a better understanding of the deepest reasons that lead entrepreneurs towards distinctive paths of international development. Finally, the present study stresses the central role played by individual expectations and risk perception in understanding the international expansion strategies of SMEs. In particular, it considers some significant relationships between international processes, human capital and the role played by the firm owner.
Internationalization of small- and medium-sized enterprises: a multi case study
European Business Review, 2010
Research on factors affecting the internationalization of SMEs is attracting growing interest. However, only a limited number of empirical analyses have explored the question of if and to what extent the family character of the firm has an effect on internationalization decisions. Relying on data from a sample of 1,324 Italian manufacturing SMEs, this paper shows that involvement of the owning family in management negatively influences export propensity but, once the choice to go international has been made, both the degree of internationalization and geographical scope in family-managed firms are not significantly different from nonfamily-managed firms. Empirical results also show that the level of human capital and the presence of foreign shareholders in the SMEs positively influence internationalization. Innovation propensity, size, and age of the firm as well as industry characteristics are included in the analysis as control variables.
2012
Sivumäärä Kieli 168 englanti Julkaisun nimike Pienten ja keskisuurten perheyritysten kansainvälistyminen: Omistuksen, hallinnon ja johtoryhmän vaikutus Tiivistelmä Pienet ja keskisuuret perheyritykset (pk-perheyritykset) kansainvälistävät liiketoimintaansa vakiinnutettuaan ensin asemansa kotimarkkinoilla. Tämä pk-perheyritysten näennäinen ristiriitaisuus eli niiden pyrkimys ankkuroitua paikallisesti ja kuitenkin samalla toimia kansainvälisesti johdatti tutkimaan, mitkä pk-perheyritysten tyypilliset piirteet suhteessa omistukseen, johtoryhmään ja hallintoon määrittelevät niiden kansainvälistymistä.
Entrepreneurial Business and Economics Review
The article focuses on the role of ownership in the process of entrepreneurial internationalisation of the firm. The main objective of the article is to verify whether and how ownership impacts on the level of internationalisation. Research Design & Methods: The study elaborates on three dimensions of ownership, which are ownership structure (foreign vs. domestic), family ownership and the characteristics of the owner (age, sex, global mindset and knowledge-the last two measured on a 5-point Likert scale). The sample of 190 internationalised Polish businesses were used in order to verify the assumed hypotheses. Findings: The investigated firms operating in Poland of foreign ownership are more internationalised, measured by TNI, than those of domestic capital only. As a general rule, the investigated non-family firms are more internationalised than family firms as for the average TNI value. International attitude of the entrepreneur-owner affect the level of internationalisation: the higher values of attitude index, the higher values of TNI. Neither the age nor the sex of the entrepreneur affect the level of internationalisation. Implications & Recommendations: it is obvious that knowledge is one of the key factors affecting the internationalisation, especially market choices, entry modes as well as the speed of internationalisation. Although much has been done in this field, but it still needs further and deeper investigations. Contribution & Value Added: The current study and its findings indicate that ownership is one of key aspects relevant for explaining the internationalisation of firms, but its impact on firms' international behaviour is somewhat equivocal. Article type: research paper
Exploring the Bulgarian family SMEs' reluctance to internationalise
International Journal of Business and Globalisation, 2016
This study explores the reasons for family SMEs' reluctance to go to foreign markets. It contributes to the fields of family business and international business by providing a conceptual model and hypotheses about organisational and owner-manager's characteristics which mediate the effect of the family business status on SME internationalisation. The proposed hypotheses are tested in a sample of Bulgarian family and non-family SMEs offering empirical evidence about SME internationalisation in a transition context. Our findings reveal that the presence of foreign owners and entrepreneurial orientation are able to mediate the negative effect of family business status on the odds of internationalisation. Contrary to expectations, owner-manager's tenure and education level, access to finance, and learning orientation do not account for differences in internationalisation between family and non-family SMEs. This paper provides a discussion of practical implications and recommendations for future research.