The impact of family involvement on the investments of Italian small-medium enterprises in psychically distant countries

Gianpoalo Baroncelli; Christina Bettinelli; Barbara Del Bosco; Sharon Loane

doi:10.1016/j.ibusrev.2016.01.011

The impact of family involvement on the investments of Italian small-medium enterprises in psychically distant countries

Gianpoalo Baroncelli, Christina Bettinelli, Barbara Del Bosco, Sharon Loane

Research output: Contribution to journal › Article › peer-review

12 Citations (Scopus)

Abstract

In this paper we investigate a sample of 122 Italian manufacturing small to medium-sized family firms, and analyse the effects of the degree of family involvement on their decisions to invest in psychically distant countries. Our findings indicate that higher family involvement tends to correspond to a lower number of foreign direct investments in psychically distant countries. Additionally, the firm’s age has a moderating effect on the relationship between family involvement and investments in psychically distant countries. When we analyse younger firms, family involvement turns out to be negatively associated with these investments, while this relationship is slightly positive when we consider older firms. These results allow us to move beyond family/non family owned comparative studies and provide a more nuanced view of family firm internationalization.

Original language	English
Pages (from-to)	960-970
Journal	International Business Review
Volume	25
Issue number	4
Early online date	18 Feb 2016
DOIs	https://doi.org/10.1016/j.ibusrev.2016.01.011
Publication status	Published - 31 Aug 2016

Keywords

Family business
Internationalisation
Psychic distance
FDI
SMEs

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.ibusrev.2016.01.011

Cite this

@article{73478fff975e45e58827c6f9b4f8b37d,

title = "The impact of family involvement on the investments of Italian small-medium enterprises in psychically distant countries",

abstract = "In this paper we investigate a sample of 122 Italian manufacturing small to medium-sized family firms, and analyse the effects of the degree of family involvement on their decisions to invest in psychically distant countries. Our findings indicate that higher family involvement tends to correspond to a lower number of foreign direct investments in psychically distant countries. Additionally, the firm{\textquoteright}s age has a moderating effect on the relationship between family involvement and investments in psychically distant countries. When we analyse younger firms, family involvement turns out to be negatively associated with these investments, while this relationship is slightly positive when we consider older firms. These results allow us to move beyond family/non family owned comparative studies and provide a more nuanced view of family firm internationalization.",

keywords = "Family business, Internationalisation, Psychic distance, FDI, SMEs",

author = "Gianpoalo Baroncelli and Christina Bettinelli and {Del Bosco}, Barbara and Sharon Loane",

note = "Reference text: Abdellatif et al., 2010 M. Abdellatif, M. Amann, J. Jaussaud Family versus nonfamily business: a comparison of international strategies Journal of Family Business Strategy, 2010 (2010), pp. 108–116 Article | Purchase PDF | View Record in Scopus | Citing articles (22) Aganin and Volpin, 2003 Aganin, A., & Volpin, P.F. (2003). History of corporate ownership in Italy. ECGI Finance Working Paper No. 17/2003). Retrieved from http://ssrn.com/abstract=391180http://dx.doi.org/10.2139/ssrn.391180 (last accessed: 10.02.15.). Allison, 1999 P. Allison Multiple regression: a primer Pine Forge Press, Thousand Oaks, CA (1999) Amatori et al., 2011 F. Amatori, M. Bugamelli, A. Colli Italian firms in history: size, technology and entrepreneurship Bank of Italy Economic History Working Papers, 13 (2011), pp. 1–53 View Record in Scopus | Citing articles (1) Anwar and Tariq, 2011 S.T. Anwar, S.M. 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year = "2016",

month = aug,

day = "31",

doi = "10.1016/j.ibusrev.2016.01.011",

language = "English",

volume = "25",

pages = "960--970",

journal = "International Business Review",

issn = "0969-5931",

publisher = "Elsevier",

number = "4",

}

TY - JOUR

T1 - The impact of family involvement on the investments of Italian small-medium enterprises in psychically distant countries

AU - Baroncelli, Gianpoalo

AU - Bettinelli, Christina

AU - Del Bosco, Barbara

AU - Loane, Sharon

N1 - Reference text: Abdellatif et al., 2010 M. Abdellatif, M. Amann, J. Jaussaud Family versus nonfamily business: a comparison of international strategies Journal of Family Business Strategy, 2010 (2010), pp. 108–116 Article | Purchase PDF | View Record in Scopus | Citing articles (22) Aganin and Volpin, 2003 Aganin, A., & Volpin, P.F. (2003). History of corporate ownership in Italy. ECGI Finance Working Paper No. 17/2003). Retrieved from http://ssrn.com/abstract=391180http://dx.doi.org/10.2139/ssrn.391180 (last accessed: 10.02.15.). Allison, 1999 P. Allison Multiple regression: a primer Pine Forge Press, Thousand Oaks, CA (1999) Amatori et al., 2011 F. Amatori, M. Bugamelli, A. Colli Italian firms in history: size, technology and entrepreneurship Bank of Italy Economic History Working Papers, 13 (2011), pp. 1–53 View Record in Scopus | Citing articles (1) Anwar and Tariq, 2011 S.T. Anwar, S.M. 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PY - 2016/8/31

Y1 - 2016/8/31

N2 - In this paper we investigate a sample of 122 Italian manufacturing small to medium-sized family firms, and analyse the effects of the degree of family involvement on their decisions to invest in psychically distant countries. Our findings indicate that higher family involvement tends to correspond to a lower number of foreign direct investments in psychically distant countries. Additionally, the firm’s age has a moderating effect on the relationship between family involvement and investments in psychically distant countries. When we analyse younger firms, family involvement turns out to be negatively associated with these investments, while this relationship is slightly positive when we consider older firms. These results allow us to move beyond family/non family owned comparative studies and provide a more nuanced view of family firm internationalization.

AB - In this paper we investigate a sample of 122 Italian manufacturing small to medium-sized family firms, and analyse the effects of the degree of family involvement on their decisions to invest in psychically distant countries. Our findings indicate that higher family involvement tends to correspond to a lower number of foreign direct investments in psychically distant countries. Additionally, the firm’s age has a moderating effect on the relationship between family involvement and investments in psychically distant countries. When we analyse younger firms, family involvement turns out to be negatively associated with these investments, while this relationship is slightly positive when we consider older firms. These results allow us to move beyond family/non family owned comparative studies and provide a more nuanced view of family firm internationalization.

KW - Family business

KW - Internationalisation

KW - Psychic distance

KW - FDI

KW - SMEs

UR - http://www.sciencedirect.com/science/article/pii/S0969593116300117

UR - https://pure.ulster.ac.uk/en/publications/the-impact-of-family-involvement-on-the-investments-of-italian-sm-3

U2 - 10.1016/j.ibusrev.2016.01.011

DO - 10.1016/j.ibusrev.2016.01.011

M3 - Article

VL - 25

SP - 960

EP - 970

JO - International Business Review

JF - International Business Review

SN - 0969-5931

IS - 4

ER -

The impact of family involvement on the investments of Italian small-medium enterprises in psychically distant countries

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