The impact of succession on family business internationalisation

Abstract

Purpose – The purpose of this paper is to examine the successor's perceptions of the major objective and subjective factors as well as networks that facilitate or inhibit the process of internationalisation of entrepreneurial family firms. Design/methodology/approach – Based on a qualitative methodological approach, the current study relies on case study evidence from a sample of six mature entrepreneurial family firms operating in different sectors. Findings – Relying on data collected, this study found that the perception of foreign market opportunities; international vision; successor's proactivity; innovative spirit and specific technical knowledge are relevant variables that initiate the process of internationalisation of a family firm within the context of (post-) succession. By contrast, the study did not find high evidence of the importance of speaking a foreign language and educational background. The study also confirmed that a disrupted process, such as succession, may re-position a mature domestic family firm in international markets. Research limitations/implications – A major limitation of this study relates to the sample size. Interpretation of these findings and their generalisation should therefore, be made with caution. In terms of future recommendations, an area that deserves particular attention relates to the development and transfer of social capital within family firms. Originality/value – This study attempts to fill a gap in the literature, and it particularly tries to understand the successors’ perceptions regarding interrelationships between succession and internationalisation. The findings provide valuable insights for policy makers and managers.