Multinational family firms’ internationalization depth and breadth following the global financial crisis
This study examines how large family firms react to a macroeconomic shock in terms of their internationalization depth and breadth. Building on new internalization theory and acknowledging the dysfunctional manifestations of bifurcation bias in large family-owned MNEs, we argue that an unexpected sh...
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sg-smu-ink.lkcsb_research-81602023-02-15T05:40:46Z Multinational family firms’ internationalization depth and breadth following the global financial crisis FOURNÉ, Sebastian P. L. ZSCHOCHE, Miriam SCHWENS, Christian KOTHA, Reddi This study examines how large family firms react to a macroeconomic shock in terms of their internationalization depth and breadth. Building on new internalization theory and acknowledging the dysfunctional manifestations of bifurcation bias in large family-owned MNEs, we argue that an unexpected shock induces family firms to recombine their family firm-specific resources with their thus far underutilized or unequally treated nonfamily resources. This recombination allows most family firms to economize on bifurcation bias and leverage their resources as firm-specific advantages (FSAs) resulting in an increased depth and breadth of internationalization post shock (while some of them may continue to suffer from bifurcation bias). Testing our theory on a panel dataset incorporating large familyowned (compared to nonfamily-owned) MNEs headquartered in Germany before and after the global financial crisis lends support to our theory. We discuss how our study contributes to new internalization theory, to the broader IB literature on MNEs’ unexpected shock response, and to family firm internationalization research. 2023-04-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/7161 info:doi/10.1016/j.jwb.2023.101428 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8160/viewcontent/MNC_Family_Firms_Internationalization_Post_Crisis.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Family firms MNEs macroeconomic shock global financial crisis bifurcation bias family firm-specific resources FDI market entry Entrepreneurial and Small Business Operations International Business Strategic Management Policy |
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Family firms MNEs macroeconomic shock global financial crisis bifurcation bias family firm-specific resources FDI market entry Entrepreneurial and Small Business Operations International Business Strategic Management Policy |
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Family firms MNEs macroeconomic shock global financial crisis bifurcation bias family firm-specific resources FDI market entry Entrepreneurial and Small Business Operations International Business Strategic Management Policy FOURNÉ, Sebastian P. L. ZSCHOCHE, Miriam SCHWENS, Christian KOTHA, Reddi Multinational family firms’ internationalization depth and breadth following the global financial crisis |
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This study examines how large family firms react to a macroeconomic shock in terms of their internationalization depth and breadth. Building on new internalization theory and acknowledging the dysfunctional manifestations of bifurcation bias in large family-owned MNEs, we argue that an unexpected shock induces family firms to recombine their family firm-specific resources with their thus far underutilized or unequally treated nonfamily resources. This recombination allows most family firms to economize on bifurcation bias and leverage their resources as firm-specific advantages (FSAs) resulting in an increased depth and breadth of internationalization post shock (while some of them may continue to suffer from bifurcation bias). Testing our theory on a panel dataset incorporating large familyowned (compared to nonfamily-owned) MNEs headquartered in Germany before and after the global financial crisis lends support to our theory. We discuss how our study contributes to new internalization theory, to the broader IB literature on MNEs’ unexpected shock response, and to family firm internationalization research. |
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text |
author |
FOURNÉ, Sebastian P. L. ZSCHOCHE, Miriam SCHWENS, Christian KOTHA, Reddi |
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FOURNÉ, Sebastian P. L. ZSCHOCHE, Miriam SCHWENS, Christian KOTHA, Reddi |
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FOURNÉ, Sebastian P. L. |
title |
Multinational family firms’ internationalization depth and breadth following the global financial crisis |
title_short |
Multinational family firms’ internationalization depth and breadth following the global financial crisis |
title_full |
Multinational family firms’ internationalization depth and breadth following the global financial crisis |
title_fullStr |
Multinational family firms’ internationalization depth and breadth following the global financial crisis |
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Multinational family firms’ internationalization depth and breadth following the global financial crisis |
title_sort |
multinational family firms’ internationalization depth and breadth following the global financial crisis |
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Institutional Knowledge at Singapore Management University |
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2023 |
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https://ink.library.smu.edu.sg/lkcsb_research/7161 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8160/viewcontent/MNC_Family_Firms_Internationalization_Post_Crisis.pdf |
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