Search results

The complexity of succession in family firms is multifaceted and can sometimes lead to turbulence. While structured succession strategies offer a roadmap for smoother transitions, intergenerational differences in family small and medium-sized enterprises (SMEs) can lead to varied interpretations of an effective succession blueprint. This study synergizes the strategic entrepreneurship framework with the socioemotional wealth (SEW) perspective to probe into how formalized succession planning impacts performance in family SMEs. Furthermore, it delves into the mediating role of succession satisfaction, especially in family firms characterized by pronounced SEW and helmed by CEOs from different generational cohorts.

Employing a comprehensive dataset from 1,833 global family businesses, this research utilizes bootstrapping regression models to discern the intertwined effects of mediator and moderator variables and their statistical significance.

The main findings suggest that succession satisfaction does matter for a good succession process and that succession plans work only in family firms with a high degree of SEW and that are led by older family CEOs (e.g. baby boomers).

The results offer fresh perspectives on succession processes, with a particular focus on how to improve the satisfaction of millennial family CEOs.

The study uniquely combines strategic entrepreneurship and SEW to offer a holistic view of succession planning, highlighting satisfaction’s mediating role and SEW’s moderating influence. Additionally, it pioneers the incorporation of generational cohorts into the succession discourse.

By investigating the reactions of family businesses to COVID-19 pandemic this article aims to explaining how family firms are capable to preserve employment during hardship.

Stemming from resource-based-view, we theorise that familiness is not directly associated with new hiring but instead fully mediated by pivoting strategic decisions (the propensity to transform the business).

Our findings show that familiness triggers pivoting strategic decisions and consequently increases the likelihood of new hiring. Additionally, we found that the involvement of multiple generations strengthens this relationship.

Family firms must consolidate their family human and social resources (familiness) and assure the presence of multiple generations in the firm because they can leverage their entrepreneurial disposition and increase the need to preserve employment and new hires during crises.

The main contribution lies in the explanation of the mechanisms that family firms deploy to overcome a crisis and thus explains why some family firms are more resilient than others in relation to firm’s employment during hardship.

This paper aims at extending the debate on family firm internationalization by identifying cycles and waves of their internationalization processes with a specific focus on de-internationalization and re-internationalization.

Building on the Uppsala model and the resource-based view, this study analyzes the cycles and waves of internationalization of 26 German family firms in the Chinese market. Semi-structured interviews with top managers of the selected case firms were conducted, and secondary sources were used to triangulate the collected data.

The findings highlight the heterogeneity of family firm internationalization processes. Indeed, some family firms follow the sequential approach of the Uppsala model, while others choose to de-internationalize and then re-internationalize their activities. Their cycles and waves of internationalization can be explained by internal and external triggers.

This article contributes to the family firm internationalization literature by investigating how family firm characteristics and environmental factors shape internationalization, de-internationalization and re-internationalization paths. The novel findings enrich theoretical assumptions on family firm internationalization and highlight their varying internationalization processes, which can be explained by firm-specific characteristics, notably their unique family resources and socioemotional wealth, and contextual factors.

Despite increased interest in headquarters (HQ) and their activities, we still lack a comprehensive understanding of the drivers of HQ relocations and their consequences. We seek to address this gap by examining whether HQ relocations are primarily driven by cost-reduction or value-creation motives, whether these motivations vary by HQ type and how these relocation patterns vary over time. We explore these questions on the basis of a unique hand-collected database of 227 HQ relocations in Europe between 2000 and 2012. Our findings illustrate that different types of HQ units play their orchestrating role in different ways and that their relocations are driven by different motives. Furthermore, our data suggest that although all types of HQ units are increasingly mobile, the implications of relocations for the MNC may differ considerably by HQ type. These findings contribute to a more fine-grained understanding of the drivers of HQ relocations and open up various new avenues for future research on HQ relocation and the role of HQ units in the orchestration of MNCs’ internal networks.

Delving into family business heterogeneity, this study applies fuzzy-set qualitative comparative analyses (fsQCA) to explain overlooked differences in the international performance of born global family firms (BGFFs) and non-born global family firms (n-BGFFs); through the lens of assemblage theory of family business internationalization, the study develops distinctive configurations of international entrepreneurial culture (IEC) for BGFFs and n-BGFFs.

This study compares the theoretical tenets of IEC among 167 BGFFs versus 192 n-BGFFs in Malaysia using fsQCA – a configurational method. The study further deploys necessity analysis of fsQCA (NCA) to determine the necessity conditions within the identified configurations.

BGFFs manifest elevated levels of international entrepreneurial orientation, international motivation and international non-competitor network orientation. In contrast, n-BGFFs rely on international markets, learning and competitor network orientations to secure international performance. Furthermore, necessary condition analysis (NCA) reveals that international entrepreneurial orientation and international motivation are the necessity conditions for BGFFs. In contrast, international market, learning and competitor network orientation are all required for n-BGFFs’ international performance.

This study is timely and contributes to advancing the international business theory of family firm internationalization. It also offers better theorizing for family firms’ heterogeneity, locating the source of that heterogeneity not just in the speed of internationalization but also in the composition of their different IECs.

There is an extensive research stream devoted to evaluating host country political risk as it relates to foreign investment decisions, and in today’s geopolitical climate, this type of risk is becoming increasingly salient to business leaders. Despite notable advancements related to understanding the importance of government-related risk, inconsistent conceptualizations and findings remain. Thus, the purpose of this paper is to offer a comprehensive overview of how host country political risk has been conceptualized, measured and studied in relation to multinational enterprises' (MNEs’) investment decisions. After reviewing the relevant literature, five major aspects of non-violent (government type, public corruption, leadership change) and violent (armed conflict, terrorism) political risk were identified. The organization and review of each aspect of political risk provide insights on fruitful directions for future research, which are discussed.

To identify research articles on political risk and foreign investment, 13 leading management and international business journals were searched using relevant keywords (January 2000 to January 2023). Moreover, reviewing articles from these journals led to locating and reviewing additional relevant articles that the authors cited. Keyword searches were also conducted on Google Scholar and Web of Science in an effort to identify relevant articles outside of the 13 targeted journals.

Both violent and non-violent aspects of host country political risk have been studied in relation to MNEs' investment decisions. Specifically, five major aspects of host country political risk were identified (government type, public corruption, leadership change, armed conflict and terrorism). Although the general consensus is that risk related to the government often creates obstacles for MNEs, conceptualizations, measures and findings in prior research are not uniform.

This paper provides a comprehensive overview of host country political risk and foreign investment. In doing so, the aspects of political risk are identified, organized and overviewed.