Family Firms Venturing into International Markets: A Resource Dependence Perspectice

Abstract

Drawing on resource dependence theory, we expect the degree of openness/closeness in the governance of family businesses to influence their internationalization. We find that external ownership increases the scale and the scope of the firm's international operations. An external CEO and larger TMTs enhance the scale of a family firm's international operations, but not the scope of international operations. Conversely, external board members enhance the scope of international operations, but not the scale. These results encourage further looks into the resources that non-family actors bring to the family business and their effects on different dimensions of internationalization.

Keywords: Entrepreneurship

JEL Classification: M13