Internationalisation of family businesses in Sweden, China and Iran

Abstract

Prior studies indicate that some socio-cultural values and norms are more conducive to family business strategies and performance. Generally, social norms and values that emphasise family values provide a beneficial environment for family businesses as they safeguard socioemotional wealth in family businesses. We analyse the effects of traditional versus secular-rational culture, particularly on internationalisation endeavours of family and non-family businesses. Our research question is, how does family and non-family business internationalisation differ between traditional and secular-rational societies? We analyse a representative sample of 1349 family and non-family businesses in secular-rational societies such as Sweden and more traditional ones such as China and Iran. Multivariate analyses support the hypothesis that the interaction between traditional culture and family governance promotes exporting in China and Iran more than in Sweden. The finding contributes to contextualising family business internationalisation in the institutional environment.