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Journal of International Entrepreneurship

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01-06-2013

Family firms and internationalization: An exploratory study on high-tech entrepreneurial ventures

Authors: Evila Piva, Cristina Rossi-Lamastra, Alfredo De Massis

Published in: Journal of International Entrepreneurship | Issue 2/2013

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Abstract

This paper empirically explores a highly relevant, although poorly investigated topic: internationalization of family firms that operate in high-tech industries. Specifically, we compare internationalization of family and nonfamily entrepreneurial ventures in these industries. Relying on prior studies on internationalization of family firms, we speculate on how the specificities of high-tech industries shape the advantages and disadvantages of family entrepreneurial ventures in pursuing internationalization as compared with their nonfamily peers. In the empirical part of the paper, through a rigorous quantitative analysis of unique data from 264 Italian high-tech entrepreneurial ventures, we explore whether in high-tech industries family entrepreneurial ventures are more (or less) likely to pursue internationalization than their nonfamily counterparts. Surprisingly enough, our econometric estimates indicate that, in high-tech industries, family entrepreneurial ventures exhibit a higher internationalization propensity than their nonfamily peers.

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We define entrepreneurial ventures as young and owner-managed firms established to commercialize novel ideas developed by their founders.

These capabilities include detecting new demand opportunities and leveraging the competitive advantage of foreign countries in the provision of low-cost and/or valuable resources (Alkhafaji 2003).

In particular, many works have documented that family entrepreneurial ventures have lower export propensity (Crick et al. 2006; Fernandez and Nieto 2005, 2006; Gallo and Pont 1996; Graves and Thomas 2004, 2006; Menendez-Requejo 2005; Thomas and Graves 2005).

Interestingly enough, the coefficient of LnNOwnerManagers_i is positive although not significant in all the models (see Table 4). This might indicate that entrepreneurial ventures with more owner-managers can rely on a wider social network, thus having advantages when internationalizing their offering (see, e.g., Freeman 2008 for a similar argument).

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Title: Family firms and internationalization: An exploratory study on high-tech entrepreneurial ventures
Authors: Evila Piva
Cristina Rossi-Lamastra
Alfredo De Massis
Publication date: 01-06-2013
Publisher: Springer US
Published in: Journal of International Entrepreneurship / Issue 2/2013
Print ISSN: 1570-7385
Electronic ISSN: 1573-7349
DOI: https://doi.org/10.1007/s10843-012-0100-y

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