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The internationalization of family SME

Author

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  • Sami Basly

    (CEROS - Centre d'Etudes et de Recherches sur les Organisations et la Stratégie - UPN - Université Paris Nanterre)

Abstract

Purpose – Owing to its specificities, the family small and medium enterprise (SME) shows a particular behavior as for the creation, development, sharing, protection and transmission of knowledge. The purpose of this paper is to study the specificities of the processes of knowledge creation and development in family firms. Design/methodology/approach – Through a questionnaire, hypotheses of the model were tested. The study is based on 118 firms belonging to various industries. After evaluating the reliability and validity of the items through exploratory and confirmatory factor analysis, the model was tested through structural equation modeling (LISREL). Findings – The model retained induces the following conclusions. Internationalization knowledge positively influences internationalization degree of the firm. The conservatism of family SME does not directly influence the level of internationalization knowledge. The influence of conservatism on internationalization knowledge is exerted only through the decisional dimension of independence orientation. The independence orientation of family SME, then with its two dimensions simultaneously (decisional and resource independence), does not significantly influence internationalization knowledge. Contrary to decisional independence which influences indirectly the degree of internationalization (through the intermediation of internationalization knowledge), resource independence influences directly the dependant variable. The mediation of internationalization knowledge is thus not totally proven. Social networking positively influences the amount of internationalization knowledge. Research limitations/implications – A major weakness is the absence of a synchronic approach as the dependent and independent variables are measured at the same moment. A more longitudinal approach would be valuable to analyze the causal relationships between the independent variables and internationalization knowledge and internationalization degree. A second limitation is that the characteristics of the sample may limit the generalizability of the results.

Suggested Citation

  • Sami Basly, 2007. "The internationalization of family SME," Post-Print hal-00465863, HAL.
    • Handle: RePEc:hal:journl:hal-00465863
    DOI: 10.1108/17465260710750973
    Note: View the original document on HAL open archive server: https://hal.science/hal-00465863
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    Cited by:

    1. Jean-Luc Arregle & Francesco Chirico & Liena Kano & Sumit K. Kundu & Antonio Majocchi & William S. Schulze, 2021. "Family firm internationalization: Past research and an agenda for the future," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(6), pages 1159-1198, August.
    2. Hillebrand, Sebastian, 2020. "Product development and (international) market development as reinforcing growth strategies - The role of familiy control," WiSo-HH Working Paper Series 58, University of Hamburg, Faculty of Business, Economics and Social Sciences, WISO Research Laboratory.
    3. Andrea Calabrò & Donata Mussolino, 2013. "How do boards of directors contribute to family SME export intensity? The role of formal and informal governance mechanisms," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(2), pages 363-403, May.
    4. Sanchez-Bueno, Maria J. & Usero, Belen, 2014. "How may the nature of family firms explain the decisions concerning international diversification?," Journal of Business Research, Elsevier, vol. 67(7), pages 1311-1320.
    5. Tsvetan Davidkov & Desislava Yordanova, 2015. "Enhancing SME Internationalization in a Transition Economy: The role of Internal Factors," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 5(3), pages 945-945.
    6. Hernita Hernita & Batara Surya & Iwan Perwira & Herminawaty Abubakar & Muhammad Idris, 2021. "Economic Business Sustainability and Strengthening Human Resource Capacity Based on Increasing the Productivity of Small and Medium Enterprises (SMEs) in Makassar City, Indonesia," Sustainability, MDPI, vol. 13(6), pages 1-36, March.
    7. Merino, Fernando & Monreal-Pérez, Joaquín & Sánchez-Marín, Gregorio, 2012. "Family firm internationalization: Influence of familiness on the Spanish firm export activity," Kiel Working Papers 1770, Kiel Institute for the World Economy (IfW Kiel).
    8. Deusdedit Rwehumbiza & Marin A. Marinov, 0. "Development of entrepreneurial orientation of export manufacturers from emerging economies," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-23.
    9. Deusdedit Rwehumbiza & Marin A. Marinov, 2020. "Development of entrepreneurial orientation of export manufacturers from emerging economies," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 667-689, June.
    10. Cesinger, Beate & Hughes, Mathew & Mensching, Helge & Bouncken, Ricarda & Fredrich, Viktor & Kraus, Sascha, 2016. "A socioemotional wealth perspective on how collaboration intensity, trust, and international market knowledge affect family firms’ multinationality," Journal of World Business, Elsevier, vol. 51(4), pages 586-599.
    11. Costa, Eric & Soares, António Lucas & de Sousa, Jorge Pinho, 2016. "Information, knowledge and collaboration management in the internationalisation of SMEs: A systematic literature review," International Journal of Information Management, Elsevier, vol. 36(4), pages 557-569.
    12. Irawan Nurhas & Stefan Geisler & Jan Pawlowski, 2022. "An intergenerational competency framework: Competencies for knowledge sustainability and start‐up development in the digital age," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1733-1748, December.
    13. Elena-Mădălina Vătămănescu & Elena-Alexandra Gorgos & Alexandru Mihai Ghigiu & Monica Pătruț, 2019. "Bridging Intellectual Capital and SMEs Internationalization through the Lens of Sustainable Competitive Advantage: A Systematic Literature Review," Sustainability, MDPI, vol. 11(9), pages 1-22, April.
    14. Jean-François Hennart & Antonio Majocchi & Emanuele Forlani, 2019. "The myth of the stay-at-home family firm: How family-managed SMEs can overcome their internationalization limitations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(5), pages 758-782, July.
    15. Eric W. K. Tsang, 2020. "Family firms and internationalization: An organizational learning perspective," Asia Pacific Journal of Management, Springer, vol. 37(1), pages 205-225, March.
    16. Lopez-Nicolas, Carolina & Soto-Acosta, Pedro, 2010. "Analyzing ICT adoption and use effects on knowledge creation: An empirical investigation in SMEs," International Journal of Information Management, Elsevier, vol. 30(6), pages 521-528.
    17. Marinos Stefanitsis & Irene Fafaliou & Joseph Hassid, 2013. "Similarities and Differences between Households’ and SME’s Financial Knowledge and Behaviour: A Greek Survey," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 63(1-2), pages 7-30, June.
    18. Liliana Grigore & Anca Maria Stanculescu & Andreea Mihaela Gagea & Ana-Maria Grigore, 2009. "The Role Of Knowledge In The Internationalization Process Of Small And Medium Enterprises," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    19. Ankur Roy & Chandra Sekhar & Vishal Vyas, 2016. "Barriers to internationalization: A study of small and medium enterprises in India," Journal of International Entrepreneurship, Springer, vol. 14(4), pages 513-538, December.
    20. Kontinen, Tanja & Ojala, Arto, 2010. "The internationalization of family businesses: A review of extant research," Journal of Family Business Strategy, Elsevier, vol. 1(2), pages 97-107, June.
    21. Calabrò, Andrea & Torchia, Mariateresa & Pukall, Thilo & Mussolino, Donata, 2013. "The influence of ownership structure and board strategic involvement on international sales: The moderating effect of family involvement," International Business Review, Elsevier, vol. 22(3), pages 509-523.

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