Ownership and the Internationalization of Small Firms

Journal of Management, Vol. 31, No. 2, pp. 210-233, 2005

38 Pages Posted: 15 Mar 2004

See all articles by Gerard George

Gerard George

Singapore Management University

Johan Wiklund

Syracuse University

Shaker A. Zahra

University of Minnesota - Twin Cities - Carlson School of Management

Abstract

Small and medium sized enterprises (SMEs) play an important role in international markets. This study argues that the ownership structures of SMEs influence their proclivity to take risks and expand the scale and scope of their internationalization efforts. Data from 889 Swedish SMEs reveal that internal owners (CEOs and other senior executives) tend to be risk averse and have a lower proclivity to increase scale and scope of internationalization than external owners (venture capitalists and institutional investors). The results provide interesting insights into the behavioral change of executives regarding the scale and scope of internationalization in the presence of external ownership.

Keywords: International, entrepreneurship, agency theory, small firms

JEL Classification: M1, M13

Suggested Citation

George, Gerard and Wiklund, Johan and Zahra, Shaker A., Ownership and the Internationalization of Small Firms. Journal of Management, Vol. 31, No. 2, pp. 210-233, 2005. Available at SSRN: https://ssrn.com/abstract=516151

Gerard George (Contact Author)

Singapore Management University ( email )

469 Bukit Timah Road
Singapore 912409
Singapore

HOME PAGE: http://www.smu.edu.sg/faculty/profile/118836/Gerry-GEORGE

Johan Wiklund

Syracuse University ( email )

Whitman School of Management
720 University Avenue
Syracuse, NY 13244-2130
United States

Shaker A. Zahra

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

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