We explore how family-owned small and medium-sized enterprises (SMEs) control their investments abroad: through full ownership (wholly owned subsidiaries) or sharing the ownership with other partners (joint ventures). Focusing on the role of family control (family members as CEO and/or board chair) and three dimensions of distance (cultural, geographic, and institutional) to explain this choice, we analyze 1475 foreign subsidiaries owned by 701 family SMEs and find that cultural, geographic, and institutional distance affect the choice of ownership mode in different ways. Moreover, family control moderates the relationship between distance and foreign ownership mode in the case of cultural and institutional distance, but not in that of geographic distance. Our study contributes to the international business literature by helping to explain the effect of distance on foreign ownership mode choice and by highlighting the importance of the characteristics of main decision makers. The paper also contributes to the literature on family business, shedding light on the role of family control in family SMEs’ foreign ownership mode choice. We thereby offer new insights into the preferences of family leaders and explain how, under certain conditions, when family members cover a central role in the governance, the foreign ownership modes differ.

(2020). How Do Family SMEs Control Their Investments Abroad? The Role of Distance and Family Control [journal article - articolo]. In MIR. MANAGEMENT INTERNATIONAL REVIEW. Retrieved from http://hdl.handle.net/10446/152726

How Do Family SMEs Control Their Investments Abroad? The Role of Distance and Family Control

Del Bosco, Barbara;Bettinelli, Cristina
2020-01-01

Abstract

We explore how family-owned small and medium-sized enterprises (SMEs) control their investments abroad: through full ownership (wholly owned subsidiaries) or sharing the ownership with other partners (joint ventures). Focusing on the role of family control (family members as CEO and/or board chair) and three dimensions of distance (cultural, geographic, and institutional) to explain this choice, we analyze 1475 foreign subsidiaries owned by 701 family SMEs and find that cultural, geographic, and institutional distance affect the choice of ownership mode in different ways. Moreover, family control moderates the relationship between distance and foreign ownership mode in the case of cultural and institutional distance, but not in that of geographic distance. Our study contributes to the international business literature by helping to explain the effect of distance on foreign ownership mode choice and by highlighting the importance of the characteristics of main decision makers. The paper also contributes to the literature on family business, shedding light on the role of family control in family SMEs’ foreign ownership mode choice. We thereby offer new insights into the preferences of family leaders and explain how, under certain conditions, when family members cover a central role in the governance, the foreign ownership modes differ.
articolo
2020
DEL BOSCO, Barbara; Bettinelli, Cristina
(2020). How Do Family SMEs Control Their Investments Abroad? The Role of Distance and Family Control [journal article - articolo]. In MIR. MANAGEMENT INTERNATIONAL REVIEW. Retrieved from http://hdl.handle.net/10446/152726
File allegato/i alla scheda:
File Dimensione del file Formato  
DelBosco-Bettinelli2020_Article_HowDoFamilySMEsControlTheirInv.pdf

Solo gestori di archivio

Versione: publisher's version - versione editoriale
Licenza: Licenza default Aisberg
Dimensione del file 867.23 kB
Formato Adobe PDF
867.23 kB Adobe PDF   Visualizza/Apri
Pubblicazioni consigliate

Aisberg ©2008 Servizi bibliotecari, Università degli studi di Bergamo | Terms of use/Condizioni di utilizzo

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/152726
Citazioni
  • Scopus 25
  • ???jsp.display-item.citation.isi??? 20
social impact