Ownership strategy and foreign affiliate performance in multinational family business groups: a double-edged sword

Chung, Hsi-Mei, and Dahms, Sven (2018) Ownership strategy and foreign affiliate performance in multinational family business groups: a double-edged sword. Journal of International Management, 24 (4). pp. 303-316.

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Abstract

We argue that ownership strategies can be a double edged sword for multinational family business groups from emerging economies and the performance of their affiliates located abroad. We test an integrated framework based on internalization and agency theory on a longitudinal dataset of multinational family business groups from Taiwan. We find evidence for the contingent impact of cultural differences and family management on the association between ownership strategy and affiliate performance. While direct ownership is seen as offering more control over the affiliate, we show that this comes at a performance cost for affiliates in culturally different host countries and affiliates under family management. Indirect ownership seems to be one way to positively influence affiliate performance in culturally distant countries, but seems not to be contingent on family management utilisation.

Item ID: 52804
Item Type: Article (Research - C1)
ISSN: 1873-0620
Keywords: family business groups; ownership stake; internalization theory; agency theory; affiliate performance
Copyright Information: © 2018 Elsevier Inc.
Date Deposited: 13 Apr 2018 02:10
FoR Codes: 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1503 Business and Management > 150308 International Business @ 100%
SEO Codes: 97 EXPANDING KNOWLEDGE > 970115 Expanding Knowledge in Commerce, Management, Tourism and Services @ 100%
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