Venturing beyond the backyard: internationalisation of the family business

Abstract

Australian family firms make a significant contribution to the Australian and global economy. Despite the fact that the complexities associated with managing a family business are not addressed by classical management theory, limited empirical research has documented the international expansion of family firms. Building upon stage model theory, network theory and organisation capabilities perspective of internationalisation, this study examines whether family firms differ from non-family firms with regard to the propensity for and extent of their internationalisation. The results highlight that family firms are less likely to internationalise compared to non-family firms. However, once family firms have entered the global marketplace, their extent of internationalisation is comparable to that of non-family firms. The results also suggest that older and larger firms, committed to innovation, networking, and an orientation towards growth, are more likely to internationalise their operations. Finally, compared to non-family firms, family firms are less likely to engage in networking with other businesses, more likely to exhibit growth profiles typical of lifestyle / traditional firms, and be smaller in size. The implications of the findings for future research are discussed.