The Role of Future Leader’s Entrepreneurial Orientation in Family Firm Internationalization Process – the Polish Context

Alicja Hadryś

Abstract


Research background: In CEE countries, especially in Poland, research on family entrepreneurship has a shorter tradition than in western countries, mainly due to the fact that most family enterprises were established after 1989 when the political system changed. Among others, the main area of interest for researchers associated with family enterprises is succession, especially areas connected with preparation of the successor, future leader of the company.

Purpose of the article: The research problem is to identify the conditions for the internationalization of family firms, which are associated with the person of a future leader (successor), in particular, those related to the entrepreneurial orientation of the leader. Therefore, the main research question is which and to what extent the dimensions of the leader’s entrepreneurial orientation influence the internationalization of family firms?

Research methods: The complexity of the researched topic prompted the use of advanced statistical methods. Therefore, the quantitative analysis was carried out using the SEM-PLS method, i.e. structural equation modeling using the partial least squares method.

Main findings: The dimensions that influence the internationalization are the pro-activity of the leader, the tendency of the leader to risk and the competitive aggression of the leader. Pro-activity of the leader in almost 20% affects the speed/pace of the internationalization of the family firm. This effect is enhanced by the presence of external managers. Future leader tendency towards risk and competitive aggression in almost 20% of every dimension affect the international achievements of a family firm.


Keywords


entrepreneurial orientation; family firm; leader; internationalization; CEE countries

Full Text:

PDF

References


Alayo, M., Iturralde, T., & Maseda, A. (2022). Innovation and internationalization in family SMEs: Analyzing the role of family involvement. European Journal of Innovation Management, 25(2), 454–478. https://doi.org/10.1108/EJIM-07-2020-0302

Alayo, M., Maseda, A., Iturralde, T., & Arzubiaga, U. (2019). Internationalization and entrepreneurial orientation of family SMEs: The influence of the family cha-racter. International Business Review, 28(1), 48–59. https://doi.org/10.1016/j.ibusrev.2018.06.003

Anwar, M., Clauss, T., & Meyer, N. (2023). Entrepreneurship in family firms: An updated bibliometric overview. Review of Managerial Science, 18, 539–575. https://doi.org/10.1007/s11846-023-00650-z

Arosa, B., Iturralde, T., & & Maseda, A. (2010). Outsiders on the board of directors and firm performance: Evidence from Spanish non-listed family firms. Journal of Family Business Strategy, 1(4), 236–245. https://doi.org/10.1016/j.jfbs.2010.10.004

Barach, J.A., Gantisky, J., Carson, J.A., & Doochin, B.A. (1988). Entry of the next generation: Strategic challenge for family business. Journal of Small Business Management, 26, 49.

Basly, S. (2007). The internationalization of family SME: An organizational learn-ing and knowledge development perspective. Baltic Journal of Management, 2(2), 154–180. https://doi.org/10.1108/17465260710750973

Bednarz, J., Bieliński, T., Nikodemska-Wołowik, A.M., & Otukoya, A. (2017). Sources of the competitive advantage of family enterprises: An international ap-proach focusing on China, Nigeria and Poland. Entrepreneurial Business and Economics Review, 5(2). https://doi.org/10.15678/EBER.2017.050207

Bertrand, M., & Schoar, A. (2003). Managing with style: The effect of managers on firm policies. Quarterly Journal of Economics, 118, 1169–1208. https://doi.org/10.1162/003355303322552775

Burgelman, R.A. (1983). A model of the interaction of strategic behavior, corporate context, and the concept of strategy. The Academy of Management Review, 8(1), 61–70. https://doi.org/10.2307/257168

Calabrò, A., Campopiano, G., Basco, R., & Pukall, T. (2017). Governance struc-ture and internationalization of family-controlled firms: The mediating role of international entrepreneurial orientation. European Management Journal, 35(2), 238–248. https://doi.org/10.1016/j.emj.2016.04.007

Camino Ramon-Lorens, M., Garcia-Meca, E., & Durendez, A. (2017). Influence of CEO characteristics in family firms internationalization. International Business Review, 26. https://doi.org/10.1016/j.ibusrev.2017.01.007

Chatterjee, A., & Hambrick, D.C. (2007). It’s all about me: Narcissistic chief executive officers and their effects on company strategy and performance. Administrative Science Quarterly, 52(3), 351–316. https://doi.org/10.2189/asqu.52.3.351

Child, J., Rodrigues, S.B., & Frynas, J.G. (2009). Psychic distance, its impact and coping modes: Interpretations of SME decision makers. MIR: Management International Review, 49(2), 199–224. http://www.jstor.org/stable/40658310

Cho, T.S., & Hambrick, D.C. (2006). Attention as the mediator between top management team characteristics and strategic change: The case of airline deregulation. Organization Science, 17(4), 453–469. http://www.jstor.org/stable/25146049

Coviello, N.E., & Munro, H. (1997). Network relationships and the internationalisation process of small software firms. International Business Review, 4. https://doi.org/10.1016/S0969-5931(97)00010-3

Covin, J.G., & Lumpkin, G.T. (2011). Entrepreneurial orientation theory and re-search: Reflections on a needed construct. Entrepreneurship Theory and Practice, 35(5), 855–872. https://doi.org/10.1111/j.1540-6520.2011.00482.x

Covin, J.G., & Slevin, D.P. (1988). The infulence of organization structure on the utility of an entrepreneurial top management style. Journal of Management Studies, 25, 217–234. https://doi.org/10.1111/j.1467-6486.1988.tb00033.x

Covin, J.G., & Slevin, D.P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10, 75–87. https://doi.org/10.1002/smj.4250100107

De Massis, A., Frattini, F., Majocchi, A., & Piscitello, L. (2018). Family firms in the global economy: Toward a deeper understanding of internationalization determinants, processes, and outcomes. Global Strategy Journal, 8. https://doi.org/10.1002/gsj.1199

De Massis, A.V., & Foss, N.J. (2018). Advancing family business research: The promise of microfoundations. Family Business Review, 31(4). https://doi.org/10.1177/0894486518803422

Duong, C.D. (2023). A moderated mediation model of perceived barriers, entrepreneurial self-efficacy, intentions, and behaviors: A social cognitive career theory perspective. Oeconomia Copernicana, 14(1), 355–388. https://doi.org/10.24136/oc.2023.010

Erdener, C., & Shapiro, D.M. (2005). The Internationalization of Chinese family enterprises and Dunning’s eclectic MNE paradigm. Management and Organization Review, 1(3). https://doi.org/10.1111/j.1740-8784.2005.00021.x

Fanelli, A., Misangyi, V.F., & Tosi, H.L. (2009). in charisma we trust: The effects of CEO charismatic visions on securities analysts. Organization Science, 20(6). https://doi.org/10.1287/orsc.1080.0407

Gallo, M.A., & Sveen, J. (1991). Internationalizing the family business: Facilitating and restraining factors. Family Business Review, 4(2), 181–190. https://doi.org/10.1111/j.1741-6248.1991.00181.x

Gallo, M.A., & Garcia Pont, C. (1996). Important factors in family business internationalization. Family Business Review, 9, 45–59. https://doi.org/10.1111/j.1741-6248.1996.00045

Gaweł, A. (2013). Proces przedsiębiorczy. Tworzenie nowych przedsiębiorstw. Difin.

Graves, C., & Thomas, J. (2006). Internationalization of Australian family businesses: A managerial capabilities perspective. Family Business Review, 19(3), 207–224. https://doi.org/10.1111/j.1741-6248.2006.00066.x

Graves, C., & Thomas, J. (2008). Determinants of the internationalization pathways of family firms: An examination of family influence. Family Business Review, 21(2), 151–167. https://doi.org/10.1111/j.1741-6248.2008.00119.x

Gupta, A., & Dwivedi, A.K. (2022). Entrepreneurial orientation, human capital, and family business internationalization: An empirical study. Palgrave Studies in Democracy, Innovation and Entrepreneurship for Growth, 265–286. https://doi.org/10.1007/978-3-031-12217-0_13

Hair, J.F., Ringle, C.M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–151. http://www.jstor.org/stable/23033534; https://doi.org/10.1177/0894486518803422

Hutzschenreuter, T., & Horstkotte, J. (2013). Performance effects of international expansion processes: The moderating role of top management team experiences. International Business Review, 22(1). http://www.jstor.org/stable/23471039

Jensen, M.C., & Murphy, K.J. (1990). Performance pay and top-management incentives. Journal of Political Economy, 98, 225–264. https://doi.org/10.1086/261677

Johanson, J., & Vahlne, J.E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9). https://doi.org/10.1057/jibs.2009.24

Kai-Ping, H., Sheng Chung, L., Chu-Mei, L., & Jane, T. (2014). Internationalisation of family business: The effect of ownership and generation involvement. The Anthropologist, 17(3), 757–767. https://doi.org/10.1080/09720073.2014.11891490

Kallmünzer, A., Mauracher, A., Gast, J., Kraus, S., & Calabrò, A. (2022). Interna-tionalisation of family firms: the role of networks and coopetition. European Jour-nal of International Management, 18(4), 495–517. https://doi.org/10.1504/ejim.2022.126166

Keil, T., Maula, M., & Syrigos, E. (2017). CEO entrepreneurial orientation, entrenchment, and firm value creation. Entrepreneurship Theory and Practice, 41(4), 475–504. https://doi.org/10.1111/etp.12213

Kellermanns, F.W., & Eddleston, K.A. (2006). Corporate entrepreneurship in family firms: A family perspective. Entrepreneurship Theory and Practice, 30(6), 809–830. https://doi.org/10.1111/j.1540-6520.2006.00153.x

Kontinen, T,. & Ojala, A. (2010). The internationalization of family businesses: A review of extant research. Journal of Family Business Strategy, 1(2).

Kontinen, T., & Ojala, A. (2012). Internationalization pathways among family-owned SMEs. International Marketing Review, 29(5). https://doi.org/10.1108/02651331211260359

Lansberg, I. (1999). Succeeding Generations: Realizing the Dreams of Families in Business. Harvard Business School Press.

Le Breton-Miller, I., Miller, D., & Steier, L.P. (2004). Toward an integrative model of effective FOB succession. Entrepreneurship Theory and Practice, 28(4), 305–328. https://doi.org/10.1111/j.1540-6520.2004.00047.x

Lin, W.-T. (2012). Family ownership and internationalization process: Internationalization pace, internationalization scope, and internationalization rhythm. European Management Journal, 30, 47–56. https://doi.org/10.1016/j.emj.2011.10.003

Lubatkin, M.H., Schulze, W.S., Ling, Y., & Dino, R.N. (2005). The effects of parental altruism on the governance of family-managed firms. Journal of Organizational Behavior, 26(3), 313–330. http://www.jstor.org/stable/4093943

Lumpkin, G.T., & Dess, G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5). https://doi.org/10.1016/S0883-9026(00)00048-3

Lumpkin, G.T., & Dess, G.G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. The Academy of Management Review, 21(1), 135–172. https://doi.org/10.2307/258632

Miller, D. (1983). The Correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770–791. http://www.jstor.org/stable/2630968

Mitter, C., Duller, C., Feldbauer-Durstm, B., & Kraus, S. (2012). Internationaliza-tion of family firms: The effect of ownership and governance. Review of Mana-gerial Science, 8(1). https://doi.org/10.1007/s11846-012-0093-x

Muñoz-Bullón, F., & Sánchez-Bueno, M.J. (2012). Do family ties shape the performance consequences of diversification? Evidence from the European Union. Journal of World Business, Elsevier, 47(3), 469–477. https://doi.org/10.1016/j.jwb.2011.05.013

Okoroafo, S.C. (1999). Internationalization of family businesses: Evidence from Northwest Ohio, U.S.A. Family Business Review, 12, 147–158. https://doi.org/10.1111/j.1741-6248.1999.001

Olivares-Mesa, A., & Cabrera-Suárez, K. (2006). Factors affecting the timing of the export develop-ment process: Does the family influence on the business make a difference?. International Journal of Globalisation and Small Business, 1, 326–339. https://doi.org/10.1504/IJGSB.2006.012183

Ratten, V., Ramadani, V., Dana, L.-P., Hoy, F., & Ferreira, J. (2017). Family en-trepreneurship and internationalization strategies. Review of International Business and Strategy, 27(2), 150–160. https://doi.org/10.1108/RIBS-01-2017-0007

Rauch, A., Wiklund, J., Lumpkin, G.T., & Frese, M. (2009). Entrepreneurial orien-tation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship Theory and Practice, 33(3), 761–787. https://doi.org/10.1111/j.1540-6520.2009.00308.x

Roszko-Wójtowicz, E., Dańska-Borsiak, B., Grzelak, M.M., & Pleśniarska, A. (2022). In search of key determinants of innovativeness in the regions of the Visegrad group countries. Oeconomia Copernicana, 13(4), 1015–1045. https://doi.org/10.24136/oc.2022.029

Sharma, P., Chrisman, J.J., & Chua, J.H. (2003). Succession planning as planned behavior: Some empirical results. Family Business Review, 16(1), 1–15. https://doi.org/10.1111/j.1741-6248.2003.00001.x

Simsek, Z., Heavey, C., & Veiga, J.F. (2010). The impact of CEO core self-evaluation on the firm’s entrepreneurial orientation. Strategic Management Journal, 31(1), 110–119. http://www.jstor.org/stable/27735512

Sullivan, B.N. (2010). Competition and beyond: Problems and attention allocation in the organizational rulemaking process. Organization Science, 21(2), 432–450. http://www.jstor.org/stable/27765976

Sułkowski, Ł., & Marjański, A. (2011). Firmy rodzinne. Jak osiągnąć sukces w sztafecie pokoleń. Poltext.

Tung, J., Lo, S.C., Chung, T., & Huang, K.-P. (2014). Family business internatio-nalisation: The role of entrepreneurship and generation involvement. Anthropolo-gist, 17(3), 811–822. https://doi.org/10.1080/09720073.2014.11891495

Wiklund, J., & Shepherd, D. (2003). Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-sized businesses. Strategic Management Journal, 24, 1307–1314. https://doi.org/10.1002/smj.360




DOI: http://dx.doi.org/10.17951/h.2024.58.4.47-65
Date of publication: 2024-10-26 13:52:03
Date of submission: 2024-09-07 13:13:40


Statistics


Total abstract view - 140
Downloads (from 2020-06-17) - PDF - 0

Indicators



Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Alicja Hadryś

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.