Main Article Content

Mahsa Samsami
Iran, Islamic Republic of
https://orcid.org/0000-0001-7906-5795
Thomas Schøtt
University of Southern Denmark
Denmark
https://orcid.org/0000-0002-8604-6709
Vol. 11 No. 2 (2021), Research Paper (SI)
DOI: https://doi.org/10.24310/ejfbejfb.v11i2.10444
Copyright How to Cite

Abstract

Gallo and Sveen, in 1991, specified problems of whether family businesses can take advantage of factors facilitating internationalization. We compare family and non-family businesses in innovation, export, and growth-expectation, and consider how outcomes are aligned, with a coupling that may be loose, with a synergy that benefits the business. This raises a further issue, is governance of a business affecting not only each of the outcomes but also their coupling. A representative sample of 530 Iranian businesses was surveyed in 2018 for Global Entrepreneurship Monitor. Innovation, export, and growth-expectation are found to be lower in family businesses. Coupling between innovation and export, and also between export and growth-expectation, are found to be looser in family businesses. - Findings suggest that coupling among performance outcomes in family businesses can feasibly be tightened, thereby reinforcing performance. The findings contribute to understanding the performance endeavors of family businesses as problematized by Gallo and Sveen.

Cited by

Article Details

References

Aguilera, R.V., & Crespi-Cladera, R. (2016). Global corporate governance: On the relevance of firms’ ownership structure. Journal of World Business, 51(1), 50-57. doi:https://doi.org/10.1016/j.jwb.2015.10.003

Alayo, M., Maseda, A., Iturralde, T., & Arzubiaga, U. (2019). Internationalization and entrepreneurial orientation of family SMEs: The influence of the family character. International Business Review, 28(1), 48-59. doi:https://doi.org/10.1016/j.ibusrev.2018.06.003

Añón Higón, D., & Driffield, N. (2011). Exporting and innovation performance: Analysis of the annual Small Business Survey in the UK. International Small Business Journal, 29(1), 4-24. doi:10.1177/0266242610369742

Arregle, J.L., Duran, P., Hitt, M.A., & van Essen, M. (2017). Why is Family Firms’ Internationalization Unique? A Meta–Analysis. Entrepreneurship Theory and Practice, 41(5), 801-831. doi:10.1111/etap.12246

Ashourizadeh, S. (2017). Iranian entrepreneurs at home and in diaspora: Entrepreneurial competencies, exporting, innovation and growth-expectations Iranian Entrepreneurship (pp. 249-262): Springer.

Banalieva, E.R., & Eddleston, K.A. (2011). Home-region focus and performance of family firms: The role of family vs non-family leaders. Journal of International Business Studies, 42(8), 1060-1072. doi:10.1057/jibs.2011.28

Basco, R. (2014). Exploring the influence of the family upon firm performance: Does strategic behaviour matter? International Small Business Journal, 32(8), 967-995. doi:10.1177/0266242613484946

Basco, R., & Calabrò, A. (2016). Open innovation search strategies in family and non-family SMEs: Evidence from a natural resource-based cluster in Chile. Academia Revista Latinoamericana de Administración, 29(3), 279-302. doi:10.1108/ARLA-07-2015-0188

Basco, R., & Calabrò, A. (2017). “Whom do I want to be the next CEO?” Desirable successor attributes in family firms. Journal of Business Economics, 87(4), 487-509.

Beck, L., Janssens, W., Debruyne, M., & Lommelen, T. (2011). A Study of the Relationships Between Generation, Market Orientation, and Innovation in Family Firms. Family Business Review, 24(3), 252-272. doi:10.1177/0894486511409210

Bertrand, M., & Schoar, A. (2006). The role of family in family firms. Journal of economic perspectives, 20(2), 73-96.

Bessler, W., Beyenbach, J., Rapp, M.S., & Vendrasco, M. (2018). The Effects of the Financial Crisis on Delisting Decisions: Evidence from Family and Non-Family Firms in Germany. Available at SSRN 3288654.

Binz, C. A., Ferguson, K.E., Pieper, T.M., & Astrachan, J.H. (2017). Family business goals, corporate citizenship behaviour and firm performance: disentangling the connections. International Journal of Management and Enterprise Development, 16(1-2), 34-56.

Bloom, N., & Van Reenen, J. (2007). Measuring and Explaining Management Practices Across Firms and Countries*. The Quarterly Journal of Economics, 122(4), 1351-1408. doi:10.1162/qjec.2007.122.4.1351

Bodolica, V., Spraggon, M., & Zaidi, S. (2015). Boundary management strategies for governing family firms: A UAE-based case study. Journal of Business Research, 68(3), 684-693. doi:https://doi.org/10.1016 j.jbusres.2014.08.003

Boellis, A., Mariotti, S., Minichilli, A., & Piscitello, L. (2016). Family involvement and firms’ establishment mode choice in foreign markets. Journal of International Business Studies, 47(8), 929-950. doi:10.1057/jibs.2016.23

Bratti, M., & Felice, G. (2012). Are Exporters More Likely to Introduce Product Innovations? The World Economy, 35(11), 1559-1598. doi:10.1111/j.1467-9701.2012.01453.x

Braun, M., Latham, S., & Porschitz, E. (2016). All together now: strategy mapping for family businesses. Journal of Business Strategy, 37(1), 3-10. doi:10.1108/JBS-12-2014-0154

Breton-Miller, I.L., Miller, D., & Lester, R.H. (2011). Stewardship or Agency? A Social Embeddedness Reconciliation of Conduct and Performance in Public Family Businesses. Organization Science, 22(3), 704-721. doi:10.1287/orsc.1100.0541

Calabrò, A. (2020). Introducing A Research Agenda for Family Business. A Research Agenda for Family Business: A Way Ahead for the Field.

Calabrò, A., Campopiano, G., & Basco, R. (2017). Principal-principal conflicts and family firm growth: The moderating role of business family identity. Journal of Family Business Management, 7(3), 291-308. doi:10.1108/JFBM-02-2017-0005

Calabrò, A., Campopiano, G., Basco, R., & Pukall, T. (2017). Governance structure and internationalization of family-controlled firms: The mediating role of international entrepreneurial orientation. European Management Journal, 35(2), 238-248. doi:https://doi.org/10.1016/j.emj.2016.04.007

Calabrò, A., Torchia, M., Pukall, T., & Mussolino, D. (2013). The influence of ownership structure and board strategic involvement on international sales: The moderating effect of family involvement. International Business Review, 22(3), 509-523. doi:https://doi.org/10.1016/j.ibusrev.2012.07.002

Capelleras, J.-L., Contin-Pilart, I., Garcés-Galdeano, L., & Larraza-Kintana, M. (2019). The role of entrepreneurial orientation and family control of the firm in the economic recovery of underperforming firms.

Carney, M., Duran, P., van Essen, M., & Shapiro, D. (2017). Family firms, internationalization, and national competitiveness: Does family firm prevalence matter? Journal of Family Business Strategy, 8(3), 123-136. doi:https://doi.org/10.1016/j.jfbs.2017.06.001

Caroli, M., Pongelli, C., & Valentino, A. (2020). A Research Agenda for Family Business Family-owned MNEs and transparency: a focus on corruption risk in host countries: Edward Elgar Publishing.

Casillas, J.C., & Moreno-Menéndez, A.M. (2017). International business & family business: Potential dialogue between disciplines. European Journal of Family Business, 7(1), 25-40. doi:https://doi.org/10.1016/j.ejfb.2017.08.001

Cassiman, B., & Golovko, E. (2011). Innovation and internationalization through exports. Journal of International Business Studies, 42(1), 56-75. doi:10.1057/jibs.2010.36

Cassiman, B., Golovko, E., & Martínez-Ros, E. (2010). Innovation, exports and productivity. International Journal of Industrial Organization, 28(4), 372-376. doi:https://doi.org/10.1016/j.ijindorg.2010.03.005

Cassiman, B., & Martinez-Ros, E. (2007). Product innovation and exports. Evidence from Spanish manufacturing, IESE Business School, Barcelona(1-36).

Cheraghi, M., & Yaghmaei, E. (2017). Networks Around Iranian Entrepreneurs at Home and in Diaspora: Effects on Performance. In S. Rezaei, L.-P. Dana, & V. Ramadani (Eds.), Iranian Entrepreneurship: Deciphering the Entrepreneurial Ecosystem in Iran and in the Iranian Diaspora (pp. 263-275). Cham: Springer International Publishing.

Chou, C., Yang, K.-P., & Chiu, Y.-J. (2016). Coupled open innovation and innovation performance outcomes: Roles of absorptive capacity. 交大管理學報, 36(1), 37-68.

Chrisman, J.J., & Patel, P.C. (2012). Variations in R&D Investments of Family and Nonfamily Firms: Behavioral Agency and Myopic Loss Aversion Perspectives. Academy of Management Journal, 55(4), 976-997. doi:10.5465/amj.2011.0211

Chrisman, J.J., Sharma, P., Steier, L.P., & Chua, J.H. (2013). The Influence of Family Goals, Governance, and Resources on Firm Outcomes. Entrepreneurship Theory and Practice, 37(6), 1249-1261. doi:10.1111/etap.12064

Classen, N., Carree, M., Van Gils, A., & Peters, B. (2014). Innovation in family and non-family SMEs: an exploratory analysis. Small Business Economics, 42(3), 595-609. doi:10.1007/s11187-013-9490-z

Clausen, T.H., & Pohjola, M. (2013). Persistence of product innovation: comparing breakthrough and incremental product innovation. Technology Analysis & Strategic Management, 25(4), 369-385. doi:10.1080/09537325.2013.774344

Cruz, C., & Justo, R. (2017). Portfolio Entrepreneurship as a Mixed Gamble: A Winning Bet for Family Entrepreneurs in SMEs. Journal of Small Business Management, 55(4), 571-593. doi:10.1111/jsbm.12341

Cucculelli, M., Le Breton-Miller, I., & Miller, D. (2016). Product innovation, firm renewal and family governance. Journal of Family Business Strategy, 7(2), 90-104. doi:https://doi.org/10.1016/j.jfbs.2016.02.001

D’Angelo, A., Majocchi, A., & Buck, T. (2016). External managers, family ownership and the scope of SME internationalization. Journal of World Business, 51(4), 534-547. doi:https://doi.org/10.1016/j.jwb.2016.01.004

De Massis, A., Frattini, F., Majocchi, A., & Piscitello, L. (2018). Family firms in the global economy: Toward a deeper understanding of internationalization determinants, processes, and outcomes. Global Strategy Journal, 8(1), 3-21. doi:10.1002/gsj.1199

De Massis, A., Frattini, F., Pizzurno, E., & Cassia, L. (2015). Product Innovation in Family versus Nonfamily Firms: An Exploratory Analysis. Journal of Small Business Management, 53(1), 1-36. doi:10.1111/jsbm.12068

De Massis, A., Kotlar, J., Mazzola, P., Minola, T., & Sciascia, S. (2018). Conflicting Selves: Family Owners' Multiple Goals and Self-Control Agency Problems in Private Firms. Entrepreneurship Theory and Practice, 42(3), 362-389. doi:10.1111/etap.12257

Debellis, F., Rondi, E., Plakoyiannaki, E., & De Massis, A. (2020). Riding the waves of family firm internationalization: A systematic literature review, integrative framework, and research agenda. Journal of World Business, 56(1), 101144.

Diéguez-Soto, J., Duréndez, A., García-Pérez-de-Lema, D., & Ruiz-Palomo, D. (2016). Technological, management, and persistent innovation in small and medium family firms: The influence of professionalism. Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences de l'Administration, 33(4), 332-346. doi:10.1002/cjas.1404

Dyer Jr, W.G., & Whetten, D.A. (2006). Family firms and social responsibility: Preliminary evidence from the S&P 500. Entrepreneurship Theory and Practice, 30(6), 785-802.

Fernández, Z., & Nieto, M.J. (2006). Impact of ownership on the international involvement of SMEs. Journal of International Business Studies, 37(3), 340-351. doi:10.1057/palgrave.jibs.8400196

Filbeck, G., & Lee, S. (2000). Financial Management Techniques in Family Businesses. Family Business Review, 13(3), 201-216. doi:10.1111/j.1741-6248.2000.00201.x

Forsman, H., & Temel, S. (2011). Innovation and business performance in small enterprises: An enterprise-level analysis. International Journal of Innovation Management, 15(03), 641-665. doi:10.1142/s1363919611003258

Gallo, M.A., & Estapé, M.J. (1992). The internationalization of the family business. Research paper No. 230, IESE Business School, University of Navara, Spain.

Gallo, M.A., & Sveen, J. (1991). Internationalizing the Family Business: Facilitating and Restraining Factors. Family Business Review, 4(2), 181-190. doi:10.1111/j.1741-6248.1991.00181.x

Gomez-Mejia, L.R., Cruz, C., Berrone, P., & De Castro, J. (2011). The bind that ties: Socioemotional wealth preservation in family firms. Academy of Management Annals, 5(1), 653-707.

Gómez-Mejía, L.R., Haynes, K.T., Núñez-Nickel, M., Jacobson, K.J., & Moyano-Fuentes, J. (2007). Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills. Administrative science quarterly, 52(1), 106-137.

Gomez–Mejia, L.R., Campbell, J.T., Martin, G., Hoskisson, R.E., Makri, M., & Sirmon, D.G. (2014). Socioemotional Wealth as a Mixed Gamble: Revisiting Family Firm R&D Investments with the Behavioral Agency Model. Entrepreneurship Theory and Practice, 38(6), 1351-1374. doi:10.1111/etap.12083

Graves, C., & Thomas, J. (2006). Internationalization of Australian Family Businesses: A Managerial Capabilities Perspective. Family Business Review, 19(3), 207-224. doi:10.1111/j.1741-6248.2006.00066.x

Hennart, J.-F., Majocchi, A., & Forlani, E. (2019). The myth of the stay-at-home family firm: How family-managed SMEs can overcome their internationalization limitations. Journal of International Business Studies, 50(5), 758-782. doi:10.1057/s41267-017-0091-y

Ismail, A., Gartner, W. B., Roomi, M. A., & Schøtt, T. (2020). The distinctiveness of family and non-family businesses in MENA countries compared to family and non-family businesses in secular-rational cultures. Conference on Family Business in the Arab World.

Kalhor, E., & Ghalwash, S. (in press). Innovation meditating and moderating internationalisation in family and non-family businesses: Embeddedness in Egypt, Madagascar,. Sinergie Italian Journal of Management.

Kirsipuu, M. (2013). Family and non-family business differences in Estonia. Discussions on Estonian Economic Policy: Topical issues of economic policy in the European Union(2).

Klyver, K. (2007). Shifting family involvement during the entrepreneurial process. International Journal of Entrepreneurial Behavior & Research, 13(5), 258-277. doi:10.1108/13552550710780867

Kontinen, T., & Ojala, A. (2010a). The internationalization of family businesses: A review of extant research. Journal of Family Business Strategy, 1(2), 97-107. doi:https://doi.org/10.1016/j.jfbs.2010.04.001

Kontinen, T., & Ojala, A. (2010b). Internationalization pathways of family SMEs: psychic distance as a focal point. Journal of Small Business and Enterprise Development, 17(3), 437-454. doi:10.1108/14626001011068725

Kotey, B. (2005). Goals, management practices, and performance of family SMEs. International Journal of Entrepreneurial Behavior & Research, 11(1), 3-24. doi:10.1108/13552550510580816

Kunday, Ö., & Şengüler, E. P. (2015). A Study on Factors Affecting the Internationalization Process of Small and Medium Enterprises (SMEs). Procedia - Social and Behavioral Sciences, 195, 972-981. doi:https://doi.org/10.1016/j.sbspro.2015.06.363

Lee, P. M. (2005). A comparison of ownership structures and innovations of US and Japanese firms. Managerial and Decision Economics, 26(1), 39-50. doi:10.1002/mde.1188

Levie, J. (2010). The IIIP innovation confidence indexes 2009 report. Hunter Center for Entrepreneurship, University of Strathclyde.

Liao, T.-S., & Rice, J. (2010). Innovation investments, market engagement and financial performance: A study among Australian manufacturing SMEs. Research Policy, 39(1), 117-125. doi:https://doi.org/10.1016/j.respol.2009.11.002

Lin, W.-T. (2012). Family ownership and internationalization processes: Internationalization pace, internationalization scope, and internationalization rhythm. European Management Journal, 30(1), 47-56. doi:https://doi.org/10.1016/j.emj.2011.10.003

Llach, J., & Nordqvist, M. (2010). Innovation in family and non-family businesses: A resource perspective. International Journal of Entrepreneurial Venturing, 2(3-4), 381-399.

Lodh, S., Nandy, M., & Chen, J. (2014). Innovation and Family Ownership: Empirical Evidence from India. Corporate Governance: An International Review, 22(1), 4-23. doi:10.1111/corg.12034

Love, J., & Roper, S. (2013). SME innovation, exporting and growth. Enterprise Research Centre, White Paper(5).

Martínez, J. I., Stöhr, B. S., & Quiroga, B. F. (2007). Family Ownership and Firm Performance: Evidence From Public Companies in Chile. Family Business Review, 20(2), 83-94. doi:10.1111/j.1741-6248.2007.00087.x

Matzler, K., Veider, V., Hautz, J., & Stadler, C. (2015). The Impact of Family Ownership, Management, and Governance on Innovation. Journal of Product Innovation Management, 32(3), 319-333. doi:10.1111/jpim.12202

Mehrotra, V., Morck, R., Shim, J., & Wiwattanakantang, Y. (2013). Adoptive expectations: Rising sons in Japanese family firms. Journal of Financial Economics, 108(3), 840-854.

Miller, D., Xu, X., & Mehrotra, V. (2015). When is human capital a valuable resource? The performance effects of Ivy League selection among celebrated CEOs. Strategic Management Journal, 36(6), 930-944.

Minetti, R., Murro, P., & Zhu, S. C. (2015). Family Firms, Corporate Governance and Export. Economica, 82(s1), 1177-1216. doi:10.1111/ecca.12156

Miroshnychenko, I., De Massis, A., Miller, D., & Barontini, R. (2020). Family Business Growth Around the World. Entrepreneurship Theory and Practice, 0(0), 1042258720913028. doi:10.1177/1042258720913028

Monreal-Pérez, J., Aragón-Sánchez, A., & Sánchez-Marín, G. (2012). A longitudinal study of the relationship between export activity and innovation in the Spanish firm: The moderating role of productivity. International Business Review, 21(5), 862-877. doi:https://doi.org/10.1016/j.ibusrev.2011.09.010

Neneh, B. N., & Vanzyl, J. (2014). Growth intention and its impact on business growth amongst SMEs in South Africa. Mediterranean Journal of Social Sciences, 5(20), 172.

Piva, E., Rossi-Lamastra, C., & De Massis, A. (2013). Family firms and internationalization: An exploratory study on high-tech entrepreneurial ventures. Journal of International Entrepreneurship, 11(2), 108-129.

Poblete, C. (2018). Growth expectations through innovative entrepreneurship: The role of subjective values and duration of entrepreneurial experience. International Journal of Entrepreneurial Behavior & Research, 24(1), 191-213. doi:10.1108/IJEBR-03-2017-0083

Price, D. P., Stoica, M., & Boncella, R. J. (2013). The relationship between innovation, knowledge, and performance in family and non-family firms: an analysis of SMEs. Journal of Innovation and Entrepreneurship, 2(1), 14. doi:10.1186/2192-5372-2-14

Pukall, T. J., & Calabrò, A. (2014). The Internationalization of Family Firms:A Critical Review and Integrative Model. Family Business Review, 27(2), 103-125. doi:10.1177/0894486513491423

Randolph, R. V., Alexander, B. N., Debicki, B. J., & Zajkowski, R. (2019). Untangling non-economic objectives in family & non-family SMEs: A goal systems approach. Journal of Business Research, 98, 317-327. doi:https://doi.org/10.1016/j.jbusres.2019.02.017

Ray, S., Mondal, A., & Ramachandran, K. (2018). How does family involvement affect a firm's internationalization? An investigation of Indian family firms. Global Strategy Journal, 8(1), 73-105.

Rettab, B., & Azzam, A. (2011). Performance of family and non-family firms with self-selection: Evidence from Dubai. Modern Economy, 2(04), 625.

Rosenbusch, N., Brinckmann, J., & Bausch, A. (2011). Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs. Journal of Business Venturing, 26(4), 441-457. doi:https://doi.org/10.1016/j.jbusvent.2009.12.002

Saeedikiya, M., Aeeni, Z., Motavaseli, M., & Farsi, J. Y. (2017). The effect of innovation on growth aspirations and internationalization in firms: Africa compared to the Protestant Europe. Paper presented at the 20th International Scientific Conference–Enterprise and Competitive Environment, Brno, the Czech Republic, Conference Proceedings.

Salvato, C., & Melin, L. (2008). Creating Value Across Generations in Family-Controlled Businesses: The Role of Family Social Capital. Family Business Review, 21(3), 259-276. doi:10.1177/08944865080210030107

Samsami, M., & Schøtt, T. (2020). Coupled performance outcomes in family and non-family businesses: Gaps in mature economies but similarity in emerging economies. Conference on Family Business in the Arab World, Nov. 2020.

Sánchez-Marín, G., Pemartín, M., & Monreal-Pérez, J. (2020). The influence of family involvement and generational stage on learning-by-exporting among family firms. Review of Managerial Science, 14(1), 311-334. doi:10.1007/s11846-019-00350-7

Segaro, E. L., Larimo, J., & Jones, M. V. (2014). Internationalisation of family small and medium sized enterprises: The role of stewardship orientation, family commitment culture and top management team. International Business Review, 23(2), 381-395. doi:https://doi.org/10.1016/j.ibusrev.2013.06.004

Sestu, M. C., & Majocchi, A. (2020). Family Firms and the Choice Between Wholly Owned Subsidiaries and Joint Ventures: A Transaction Costs Perspective. Entrepreneurship Theory and Practice, 44(2), 211-232. doi:10.1177/1042258718797925

Shapiro, D., Tang, Y., Wang, M., & Zhang, W. (2015). The effects of corporate governance and ownership on the innovation performance of Chinese SMEs. Journal of Chinese Economic and Business Studies, 13(4), 311-335. doi:10.1080/14765284.2015.1090267

Singh, D. A., & Gaur, A. S. (2013). Governance Structure, Innovation and Internationalization: Evidence From India. Journal of International Management, 19(3), 300-309. doi:https://doi.org/10.1016/j.intman.2013.03.006

Stenholm, P., Pukkinen, T., & Heinonen, J. (2016). Firm Growth in Family Businesses—The Role of Entrepreneurial Orientation and the Entrepreneurial Activity. Journal of Small Business Management, 54(2), 697-713. doi:10.1111/jsbm.12166

Thomas, J., & Graves, C. (2005). Internationalization of the family firm: The contribution of an entrepreneurial orientation. Journal of Business and Entrepreneurship, 17(2), 91-113.

Tolba, A., Meshreki, H., & Kolaly, H. E. (2020). Family business innovation and coping mechanisms following the covid-19 disruption. Conference Family Business in the Arab World.

Vanyushyn, V., Bengtsson, M., Näsholm, M. H., & Boter, H. (2018). International coopetition for innovation: Are the benefits worth the challenges? Review of Managerial Science, 12(2), 535-557. doi:10.1007/s11846-017-0272-x

Verheul, I., & Van Mil, L. (2011). What determines the growth ambition of Dutch early-stage entrepreneurs? International Journal of Entrepreneurial Venturing, 3(2), 183-207.

Wang, D., & Schøtt, T. (2020). Coupling between financing and innovation in a startup: embedded in networks with investors and researchers. International Entrepreneurship and Management Journal. doi:10.1007/s11365-020-00681-y

Weick, K. E. (1976). Educational Organizations as Loosely Coupled Systems. Administrative science quarterly, 21(1), 1-19. doi:10.2307/2391875

Williams Jr, R. I., Pieper, T. M., Kellermanns, F. W., & Astrachan, J. H. (2018). Family Firm Goals and their Effects on Strategy, Family and Organization Behavior: A Review and Research Agenda. International Journal of Management Reviews, 20(S1), S63-S82. doi:10.1111/ijmr.12167

Zali, M. R., Faghih, N., Ghotbi, S., & Rajaie, S. (2013). The effect of necessity and opportunity driven entrepreneurship on business growth. International Research Journal of Applied and Basic Sciences, 7(2), 100-108.