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...

Full description

Saved in:
Bibliographic Details
Main Authors: FOURNÉ, Sebastian P. L., ZSCHOCHE, Miriam, SCHWENS, Christian, KOTHA, Reddi
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2023
Subjects:
FDI
Online Access: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
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Singapore Management University
Language: English
id sg-smu-ink.lkcsb_research-8160
record_format dspace
spelling 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
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic 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
spellingShingle 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
description 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.
format text
author FOURNÉ, Sebastian P. L.
ZSCHOCHE, Miriam
SCHWENS, Christian
KOTHA, Reddi
author_facet FOURNÉ, Sebastian P. L.
ZSCHOCHE, Miriam
SCHWENS, Christian
KOTHA, Reddi
author_sort 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
title_full_unstemmed 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
publisher Institutional Knowledge at Singapore Management University
publishDate 2023
url 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
_version_ 1770576450215215104