Title

Ownership and the Internationalization of Small Firms

Publication Type

Journal Article

Publication Date

4-2005

Abstract

Small and medium-sized enterprises (SMEs) play an important role in international markets. This study argues that the ownership structures of SMEs influence their proclivity to take risks and expand the scale and scope of their internationalization efforts. Data from 889 Swedish SMEs reveal that internal owners (CEOs and other senior executives) tend to be risk averse and have a lower proclivity to increase scale and scope of internationalization than external owners (venture capitalists and institutional investors). The results provide interesting insights into the behavioral change of executives regarding the scale and scope of internationalization in the presence of external ownership.

Keywords

ownership, international entrepreneurship, family business, agency theory

Discipline

Business | Entrepreneurial and Small Business Operations | International Business

Research Areas

Strategy and Organisation

Publication

Journal of Management

Volume

31

Issue

2

First Page

210

Last Page

233

ISSN

0149-2063

Identifier

10.1177/0149206304271760

Publisher

SAGE

Additional URL

http://dx.doi.org/10.1177/0149206304271760