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Family firms and internationalization: An organizational learning perspective

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A Correction to this article was published on 23 May 2020

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Abstract

This paper presents an organizational learning perspective of family firms’ internationalization, an important yet neglected theoretical lens in this domain of research. The discussion is based on Huber’s (Organization Science, 2(1): 88–115, 1991) typology of learning processes, which includes knowledge acquisition (with five subprocesses: experiential learning, vicarious learning, congenital learning, searching and grafting), information distribution, information interpretation and organizational memory. Family firms exhibit different learning behaviors compared to their non-family counterparts. Moreover, there are differences between traditional and professional family firms. Theoretically-significant propositions can be derived from the differences among the three types of firms that may guide empirical research.

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Change history

  • 23 May 2020

    The following articles are intended for inclusion in the Special Section on Familial Organizations and International Business: Individual, Organizational and Institutional Variety in and beyond Asia. These were however published in a separate issue, Volume 37 Issue 1.

Notes

  1. Firm X is labeled as CFB1 in Tsang (2002b) and is the case discussed in Tsang (2001).

  2. Although firms in general have this preference, it is particularly salient among family firms. The owning family often has the final say in the choice of investment locations and most of the family members are likely to be born and grow up in the home country. Therefore the preference with respect to closeness of culture is rather strong within the family. In contrast, the backgrounds of TMT members of a non-family firm are more diverse, and some of the members may not even be home country nationals. As such, their location preferences are more heterogeneous than those of owning family members, and the final decision is more uncertain.

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Acknowledgements

I thank the helpful comments given by the guest editors for improving my paper.

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  1. Naveen Jindal School of Management, University of Texas at Dallas, 800 W Campbell Rd., SM43, Richardson, TX, 75080-3021, USA

    Eric W. K. Tsang

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Tsang, E.W.K. Family firms and internationalization: An organizational learning perspective. Asia Pac J Manag 37, 205–225 (2020). https://doi.org/10.1007/s10490-018-9590-z

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