IDEAS home Printed from https://ideas.repec.org/p/zbw/rwirep/416.html
   My bibliography  Save this paper

Time to BRIC It? – Internationalization of European Family Firms in Europe, North America and the BRIC Countries

Author

Listed:
  • Procher, Vivien
  • Urbig, Diemo
  • Volkmann, Christine

Abstract

For a sample of 1243 European companies, we analyse the link between firm type and foreign direct investment (FDI) locations. We find substantial empirical evidence that being a family firm does not only affect the overall propensity for FDI but that this effect is also specific to target regions. Overall, family firms invest more than managerial-led firms, particularly in Europe and North America. Furthermore the BRIC countries Brazil, Russia, India and China do not constitute a homogenous attractiveness cluster for FDI.

Suggested Citation

  • Procher, Vivien & Urbig, Diemo & Volkmann, Christine, 2013. "Time to BRIC It? – Internationalization of European Family Firms in Europe, North America and the BRIC Countries," Ruhr Economic Papers 416, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:416
    DOI: 10.4419/86788471
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/75407/1/749578262.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.4419/86788471?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Susana Assunção & Rosa Forte & Aurora A. C. Teixeira, 2011. "Location Determinants Of Fdi: A Literature Review," FEP Working Papers 433, Universidade do Porto, Faculdade de Economia do Porto.
    2. Fazia Pusterla & Laura Resmini, 2005. "Where do foreign firms locate in transition Countries? An empirical investigation," ISLA Working Papers 20, ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy, revised Sep 2005.
    3. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
    4. Gabor Hunya & Roman Stöllinger, 2009. "Foreign Direct Investment Flows between the EU and the BRICs," wiiw Research Reports 358, The Vienna Institute for International Economic Studies, wiiw.
    5. Laura Alfaro & Andrew Charlton, 2009. "Intra-industry Foreign Direct Investment," American Economic Review, American Economic Association, vol. 99(5), pages 2096-2119, December.
    6. Bruce Blonigen, 2005. "A Review of the Empirical Literature on FDI Determinants," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 33(4), pages 383-403, December.
    7. 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.
    8. Igor Filatotchev & Johannes Stephan & Björn Jindra, 2008. "Ownership structure, strategic controls and export intensity of foreign-invested firms in transition economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(7), pages 1133-1148, October.
    9. Carlos Benavides-Velasco & Cristina Quintana-García & Vanesa Guzmán-Parra, 2013. "Trends in family business research," Small Business Economics, Springer, vol. 40(1), pages 41-57, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kalhor Elham, 2024. "Institutional effects on family business internationalization: A systematic review," ZFW – Advances in Economic Geography, De Gruyter, vol. 68(1), pages 41-62.
    2. 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.
    3. Mikel Alayo & Txomin Iturralde & Amaia Maseda & Gloria Aparicio, 2021. "Mapping family firm internationalization research: bibliometric and literature review," Review of Managerial Science, Springer, vol. 15(6), pages 1517-1560, August.
    4. Steinberg, Philip J. & Urbig, Diemo & Procher, Vivien D. & Volkmann, Christine, 2021. "Knowledge transfer and home-market innovativeness: A comparison of emerging and advanced economy multinationals," Journal of International Management, Elsevier, vol. 27(4).
    5. Bornhausen, Anna Maria, 2022. "Conceptualizing cross-country analyses of family firms: A systematic review and future research agenda," International Business Review, Elsevier, vol. 31(4).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:zbw:rwirep:0416 is not listed on IDEAS
    2. Vivien Procher & Diemo Urbig & Christine Volkmann, 2013. "Time to BRIC It? – Internationalization of European Family Firms in Europe, North America and the BRIC Countries," Ruhr Economic Papers 0416, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. Tanaka, Kiyoyasu, 2011. "Vertical foreign direct investment: Evidence from Japanese and U.S. multinational enterprises," Japan and the World Economy, Elsevier, vol. 23(2), pages 97-111, March.
    4. Holger Görg & Henning Mühlen & Peter Nunnenkamp, 2010. "Firm Heterogeneity, Industry Characteristics and Types of FDI: The Case of German FDI in the Czech Republic," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 65(3), pages 273-295, September.
    5. Alejandro G. Graziano & Monika Sztajerowska & Christian Volpe Martincus & Alejandro Graziano, 2024. "Trading Places: How Trade Policy Is Reshaping Multinational Firms’ Location," CESifo Working Paper Series 11514, CESifo.
    6. Camarero, Mariam & Montolio, Laura & Tamarit, Cecilio, 2019. "What drives German foreign direct investment? New evidence using Bayesian statistical techniques," Economic Modelling, Elsevier, vol. 83(C), pages 326-345.
    7. Mariam Camarero & Laura Montolio & Cecilio Tamarit, 2020. "Determinants of FDI for Spanish regions: evidence using stock data," Empirical Economics, Springer, vol. 59(6), pages 2779-2820, December.
    8. Liedong, Tahiru Azaaviele & Peprah, Augustine Awuah & Amartey, Abednego Okoe & Rajwani, Tazeeb, 2020. "Institutional voids and firms' resource commitment in emerging markets: A review and future research agenda," Journal of International Management, Elsevier, vol. 26(3).
    9. Mariam Camarero & Laura Montolio & Cecilio Tamarit, 2019. "Determinants of German outward FDI: variable selection using Bayesian statistical," Working Papers 1906, Department of Applied Economics II, Universidad de Valencia.
    10. Jeffrey H. Bergstrand & Peter Egger, 2013. "Shouldn't Physical Capital Also Matter for Multinational Enterprise Activity?," Review of International Economics, Wiley Blackwell, vol. 21(5), pages 945-965, November.
    11. Pamela Bombarda, 2016. "Firm heterogeneity and the localization of economic activities," Papers in Regional Science, Wiley Blackwell, vol. 95, pages 1-26, March.
    12. Roger Bandick & Holger Görg, 2016. "Foreign acquisition, plant survival, and employment growth," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT Volume 53: World Scientific Studies in International Economics, chapter 7, pages 115-141, World Scientific Publishing Co. Pte. Ltd..
    13. Sosa Andrés, Maximiliano & Nunnenkamp, Peter & Busse, Matthias, 2013. "What drives FDI from non-traditional sources? A comparative analysis of the determinants of bilateral FDI flows," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 7, pages 1-53.
    14. Blyde, Juan & Molina, Danielken, 2015. "Logistic infrastructure and the international location of fragmented production," Journal of International Economics, Elsevier, vol. 95(2), pages 319-332.
    15. Shi, Jiao, 2019. "Vertical FDI and exchange rates over the business cycle: The welfare implications of openness to FDI," Journal of Development Economics, Elsevier, vol. 138(C), pages 274-293.
    16. Raphael Chiappini & François Viaud, 2021. "Macroeconomic, institutional, and sectoral determinants of outward foreign direct investment: Evidence from Japan," Pacific Economic Review, Wiley Blackwell, vol. 26(3), pages 404-433, August.
    17. Engel, Dirk & Procher, Vivien, 2012. "Export, FDI and firm productivity," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 44(15), pages 1931-1940.
    18. Okubo, Toshihiro & Watabe, Yuta, 2023. "Networked FDI and third-country intra-firm trade," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 591-606.
    19. Sotiris Blanas & Adnan Seric, 2018. "Determinants of intra‐firm trade: Evidence from foreign affiliates in Sub‐Saharan Africa," Review of International Economics, Wiley Blackwell, vol. 26(4), pages 917-956, September.
    20. Richard Baldwin & Toshihiro Okubo, 2014. "Networked FDI: Sales and Sourcing Patterns of Japanese Foreign Affiliates," The World Economy, Wiley Blackwell, vol. 37(8), pages 1051-1080, August.
    21. Dany Bahar, 2017. "The Hardships of Long Distance Relationships: Knowledge Transmission and the Ease of Communication within Multinational Firms," Growth Lab Working Papers 102, Harvard's Growth Lab.

    More about this item

    Keywords

    Foreign direct investment; family firms; BRIC;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:rwirep:416. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/rwiesde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.