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Eastern Academy of Management International 2019 Conference

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Second-generation's international experience effect on family businesses global expansion

Family firms are typically reluctant in international expansion due to their strong home market ties, strong concern on family control and lack of external expertise and capital. Does international experience of second-generation managers help to reduce such reluctance? Carrying knowledge of doing business abroad, second-generation managers with international experience may mitigate agency problems caused by information asymmetry when family firms expand abroad. Therefore, second-generation’s international experience may facilitate family firms to go abroad. Data on publicly listed Chinese family businesses supported the above arguments.

Hao Jie
Tsinghua University
China

Kunpeng Sun
Tsinghua University
China

Friar John
Northeastern University
United States

Zhenzhen Xie
Tsinghua University
China

 


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