Business group internationalization: choosing a host country according to institutional distance

Marina A. B Gama, Jeferson Lana, Cyntia Vilasboas Calixto, Rodrigo Bandeira-de-Mello

Abstract


Purpose – This research analyzes to what extent committing resources
to the internationalization of family business groups is related to the
institutional distance of the host country.


Design/methodology/approach – We used OLS panel data with
fixed effects.


Findings – We identified that family business groups decide to
internationalize themselves committing fewer resources to countries
that present a positive institutional distance, and that are more
institutionally developed than the country of origin. On the other hand,
when family business groups choose to expand abroad committing more
resources, they tend to invest in countries with a negative institutional
distance, and that are less institutionally developed than the country
of origin.


Originality/value – Our main contribution to existing theory on
internationalization of family business groups is to test the relationship
between the level of resource commitment by family business groups
in their international expansion and the institutional distance between
the country of origin and the host country.


Keywords


Family business groups; internationalization; resource commitment; institutional distance.



DOI: https://doi.org/10.7819/rbgn.v18i61.2894

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