Original Research Article
The Speed of the Internationalisation Process and the Institutional Networks of Family SMEs in the DOC Rioja Wine Industry
Published 2020-05-12
Keywords
- institutional networking,
- speed of internationalisation,
- DOC Rioja wine
How to Cite
Fernández Olmos, M., & Malorgio, . . G. . (2020). The Speed of the Internationalisation Process and the Institutional Networks of Family SMEs in the DOC Rioja Wine Industry. Wine Economics and Policy, 9(1), 43–50. https://doi.org/10.36253/web-8371
Funding data
-
Ministerio de Educación y Cultura
Grant numbers grant ECO2016-77-P (AEI/FEDER, UE) -
Gobierno de Aragón
Grant numbers COMPETE (S52_17R) research group (Government of Aragón -Spain- and FEDER 2014-2020 "Construyendo Europa desde Aragón").
Abstract
Institutional networking is a key element in businesses’ internationalisation processes and is an important strategy for promoting the long-term growth and survivability of family SMEs in the DOC Rioja wine industry. We hold that the proportion of family members in the TMT plays an important role in strategic decision-making and helps to explain the speed of their internationalisation process. This paper contributes to the scant research on the influence of family involvement in the TMT by analysing the moderating effects of two diversities on the relationship between institutional networking and the speed of internationalisation: the family TMT ratio and generational involvement. Using a broad sample of 77 family wineries in DOC Rioja, the results obtained indicate that institutional networking plays a significant role in explaining the speed of internationalisation in family firms and that this relationship is weaker when a larger proportion of family members serve as top managers. The empirical results also have interesting implications for the managers of family firms as it may help them to identify the effective composition of TMTs to be considered when deciding on the process of internationalisation.
References
References
Abdellatif, M., Amann, B., Jaussaud, J. 2010. Family versus nonfamily Business: A comparison of International strategies. J. Family Bus. Strat. 1(2), 108-116.
Alayo, M., Maseda, A., Iturralde, T., Arzubiaga, U. 2019. Internationalisation and entrepreneurial orientation of family SMEs: The influence of the family character. Int. Bus. Rev. 28, 48-59
Annual Report of DOC Rioja https://www.riojawine.com/wp-content/uploads/1/2019/06/MEMORIA_ENG_2018_web.pdf
Arregle, J., Hitt, M.A., Sirmon, D.G., Very, P. 2007. The development of organizational social capital: attributes of family firms. J. Manag. Stud. 44 (1), 73-95
Arregle, J. L., Hitt, M. A., Mari, I. 2019. A missing link in family firms’ Internationalisation Research: Family structures. J. Int. Bus. Stud. 1-17.
Arzubiaga, U., Maseda, A., Iturralde, T. 2019. Exploratory and exploitative innovation in family Businesses: the moderating role of the family firm image and family involvement in top Management. Rev. Manag. Science 13(1), 1-31
Banalieva, E. R., Eddleston, K. A. 2011. Home-region focus and performance of family firms: The role of family vs non-family leaders. J. Int. Bus. Stud. 42(8), 1060-1072.
Baronchelli G, Bettinelli C, Del Bosco B, Loane, S. 2016. The impact of family involvement on the investments of Italian small-medium enterprises in psychically distant countries. Int. Bus. Rev. 25, 960-970
Bateman, M. 2000. Neo-liberalism, SME development and the role of Bus. Support Centres in the transition economies of Central and Eastern Europe. Small Bus. Econ. 14(4), 275-298
Beck, L., Janssens, W., Debruyne, M., Lommelen, T. 2011. A study of the relationships between generation, market orientation, and innovation in family firms. Family Bus. Rev. 24(3), 252-272.
Chirico, F., Sirmon, D. G., Sciascia, S., Mazzola, P. 2011. Resource orchestration in family firms: Investigating how entrepreneurial orientation, generational involvement, and participative strategy affect performance. Strat. Entrep. J. 5(4), 307-326.
Fernández, Z., Nieto, M. J. 2005. Internationalisation strategy of small and medium-sized family Businesses: Some influential factors. Family Bus. Rev. 18(1), 77-89.
Fernández-Olmos, M. 2011. The determinants of Internationalisation: Evidence from the wine industry. Appl. Econ. Perspect. Policy 33(3), 384-401.
Gomez‐Mejia, L. R., Makri, M., Kintana, M. L. 2010. Diversification decisions in family‐controlled firms. J. Manag. Stud. 47(2), 223-252.
Greene, W. H. 2003. Econometric analysis. Pearson Education India.
Hessels, J., Terjesen, S. 2010. Resource dependency and institutional theory perspectives on direct and indirect export choices. Small Bus. Econ. 34(2), 203-220.
Köhr, C. K., Malorgio, G., Aragrande, M. 2017. Exploring determinants of internationalisation: the case of late starters. Int. J. Wine Bus. Res. 29 (2), 159-177.
Köhr, C. K., Camanzi, L., Malorgio, G. 2018. Exploring structural and strategic correlates of difficulties in the Int.isation process of Italian wine SMEs. Wine Econ. Policy 7(1), 13-23
Kontinen, T., Ojala, A. 2011a. Network ties in the international opportunity recognition of family SMEs. Int. Bus. Rev. 20(4), 440-453.
Kontinen, T., Ojala, A. 2011b. International opportunity recognition among small and medium‐sized family firms. J. Small Bus. Manag. 49(3), 490-514.
Kraiczy, N. D., Hack, A., Kellermanns, F. W. 2015. What makes a family firm innovative? CEO risk‐taking propensity and the organizational context of family firms. J. Prod. Innov. Manag. 32(3), 334-348.
Lee, C.S., Yang, Y.S. 1990. Impact of export market expansion strategy on export performance. Int. Mark. Rev. 7 (4), pp. 41-51.
Ling, Y., Kellermanns, F.W. 2010. The effects of family firm specific sources of TMT diversity: The moderating role of information exchange frequency. J. Manag. Stud. 47 (2), 322-344.
Liang, X., Wang, L., Cui, Z. 2014. Chinese private firms and Internationalisation: Effects of family involvement in Management and family ownership. Family Bus. Rev. 27(2), 126-141.
Majocchi, A., Bacchiocchi, E., Mayrhofer, U. 2005. Firm size, business experience and export intensity in SMEs: A longitudinal approach to complex relationships. Int. Bus. Rev. 14(6), 719-738.
Michie, S. G., Dooley, R. S., Fryxell, G. E. 2006. Unified diversity in top-level teams: Enhancing collaboration and quality in strategic decision-making. Int. J. Organ. Anal. 14(2), 130-149.
Minichilli, A., Corbetta, G., MacMillan, I. C. 2010. Top management teams in family‐controlled companies: ‘familiness’, ‘faultlines’, and their impact on financial performance. J. Manag. Stud. 47(2), 205-222.
Nordqvist, M., Sharma, P., Chirico, F. 2014. Family firm heterogeneity and governance: A configuration approach. J. Small Bus. Manag. 52(2), 192-209.
Pukall, T. J., Calabrò, A. 2014. The Internationalisation of family firms: A critical review and integrative model. Family Bus. Rev. 27(2), 103-125
Ruzo, E., Losada, F., Navarro, A., Díez, J.A. 2011. Resources and International marketing strategy in export firms: Implications for export performance. Manag. Res. Rev. 34 (5), 496-518.
Sciascia, S., Mazzola, P., Chirico, F. 2013. Generational involvement in the top Management team of family firms: Exploring nonlinear effects on entrepreneurial orientation. Entrep. Theory Pract. 37(1), 69-85.
Séror, A. C. 1998. A model of institutional network dynamics and a comparative case analysis of information technology transfer. J. Tech. Transfer 23(3), 39-50.
Sharma, P., Melin, L., Nordqvist, M. 2014. Future of Family Business Studies, 2007, 1-22, in L. Merlin, M. Nordqvist, M. and P. Sharma (Eds.). The Sage Handbook of Family Business. London, UK: Sage Publications LTD
Speckbacher, G., Wentges, P. 2012. The impact of family control on the use of performance measures in strategic target setting and incentive compensation: A Res. note. Manag. Accounting Res. 23 (1), 34-46.
Szyliowicz, D., Galvin, T. 2010. Applying broader strokes: Extending institutional perspectives and agendas for international entrepreneurship research. Int. Bus. Rev. 19(4), 317-332.
Talke, K., Salomo, S., Kock, A. 2011. Top Management team diversity and strategic innovation orientation: The relationship and consequences for innovativeness and performance. J. Product Innov. Manag. 28(6), 819-832.
Zahra, S. A. 2003. International expansion of US manufacturing family Bus.es: The effect of ownership and involvement. J. Bus. Ventur. 18(4), 495-512.
Abdellatif, M., Amann, B., Jaussaud, J. 2010. Family versus nonfamily Business: A comparison of International strategies. J. Family Bus. Strat. 1(2), 108-116.
Alayo, M., Maseda, A., Iturralde, T., Arzubiaga, U. 2019. Internationalisation and entrepreneurial orientation of family SMEs: The influence of the family character. Int. Bus. Rev. 28, 48-59
Annual Report of DOC Rioja https://www.riojawine.com/wp-content/uploads/1/2019/06/MEMORIA_ENG_2018_web.pdf
Arregle, J., Hitt, M.A., Sirmon, D.G., Very, P. 2007. The development of organizational social capital: attributes of family firms. J. Manag. Stud. 44 (1), 73-95
Arregle, J. L., Hitt, M. A., Mari, I. 2019. A missing link in family firms’ Internationalisation Research: Family structures. J. Int. Bus. Stud. 1-17.
Arzubiaga, U., Maseda, A., Iturralde, T. 2019. Exploratory and exploitative innovation in family Businesses: the moderating role of the family firm image and family involvement in top Management. Rev. Manag. Science 13(1), 1-31
Banalieva, E. R., Eddleston, K. A. 2011. Home-region focus and performance of family firms: The role of family vs non-family leaders. J. Int. Bus. Stud. 42(8), 1060-1072.
Baronchelli G, Bettinelli C, Del Bosco B, Loane, S. 2016. The impact of family involvement on the investments of Italian small-medium enterprises in psychically distant countries. Int. Bus. Rev. 25, 960-970
Bateman, M. 2000. Neo-liberalism, SME development and the role of Bus. Support Centres in the transition economies of Central and Eastern Europe. Small Bus. Econ. 14(4), 275-298
Beck, L., Janssens, W., Debruyne, M., Lommelen, T. 2011. A study of the relationships between generation, market orientation, and innovation in family firms. Family Bus. Rev. 24(3), 252-272.
Chirico, F., Sirmon, D. G., Sciascia, S., Mazzola, P. 2011. Resource orchestration in family firms: Investigating how entrepreneurial orientation, generational involvement, and participative strategy affect performance. Strat. Entrep. J. 5(4), 307-326.
Fernández, Z., Nieto, M. J. 2005. Internationalisation strategy of small and medium-sized family Businesses: Some influential factors. Family Bus. Rev. 18(1), 77-89.
Fernández-Olmos, M. 2011. The determinants of Internationalisation: Evidence from the wine industry. Appl. Econ. Perspect. Policy 33(3), 384-401.
Gomez‐Mejia, L. R., Makri, M., Kintana, M. L. 2010. Diversification decisions in family‐controlled firms. J. Manag. Stud. 47(2), 223-252.
Greene, W. H. 2003. Econometric analysis. Pearson Education India.
Hessels, J., Terjesen, S. 2010. Resource dependency and institutional theory perspectives on direct and indirect export choices. Small Bus. Econ. 34(2), 203-220.
Köhr, C. K., Malorgio, G., Aragrande, M. 2017. Exploring determinants of internationalisation: the case of late starters. Int. J. Wine Bus. Res. 29 (2), 159-177.
Köhr, C. K., Camanzi, L., Malorgio, G. 2018. Exploring structural and strategic correlates of difficulties in the Int.isation process of Italian wine SMEs. Wine Econ. Policy 7(1), 13-23
Kontinen, T., Ojala, A. 2011a. Network ties in the international opportunity recognition of family SMEs. Int. Bus. Rev. 20(4), 440-453.
Kontinen, T., Ojala, A. 2011b. International opportunity recognition among small and medium‐sized family firms. J. Small Bus. Manag. 49(3), 490-514.
Kraiczy, N. D., Hack, A., Kellermanns, F. W. 2015. What makes a family firm innovative? CEO risk‐taking propensity and the organizational context of family firms. J. Prod. Innov. Manag. 32(3), 334-348.
Lee, C.S., Yang, Y.S. 1990. Impact of export market expansion strategy on export performance. Int. Mark. Rev. 7 (4), pp. 41-51.
Ling, Y., Kellermanns, F.W. 2010. The effects of family firm specific sources of TMT diversity: The moderating role of information exchange frequency. J. Manag. Stud. 47 (2), 322-344.
Liang, X., Wang, L., Cui, Z. 2014. Chinese private firms and Internationalisation: Effects of family involvement in Management and family ownership. Family Bus. Rev. 27(2), 126-141.
Majocchi, A., Bacchiocchi, E., Mayrhofer, U. 2005. Firm size, business experience and export intensity in SMEs: A longitudinal approach to complex relationships. Int. Bus. Rev. 14(6), 719-738.
Michie, S. G., Dooley, R. S., Fryxell, G. E. 2006. Unified diversity in top-level teams: Enhancing collaboration and quality in strategic decision-making. Int. J. Organ. Anal. 14(2), 130-149.
Minichilli, A., Corbetta, G., MacMillan, I. C. 2010. Top management teams in family‐controlled companies: ‘familiness’, ‘faultlines’, and their impact on financial performance. J. Manag. Stud. 47(2), 205-222.
Nordqvist, M., Sharma, P., Chirico, F. 2014. Family firm heterogeneity and governance: A configuration approach. J. Small Bus. Manag. 52(2), 192-209.
Pukall, T. J., Calabrò, A. 2014. The Internationalisation of family firms: A critical review and integrative model. Family Bus. Rev. 27(2), 103-125
Ruzo, E., Losada, F., Navarro, A., Díez, J.A. 2011. Resources and International marketing strategy in export firms: Implications for export performance. Manag. Res. Rev. 34 (5), 496-518.
Sciascia, S., Mazzola, P., Chirico, F. 2013. Generational involvement in the top Management team of family firms: Exploring nonlinear effects on entrepreneurial orientation. Entrep. Theory Pract. 37(1), 69-85.
Séror, A. C. 1998. A model of institutional network dynamics and a comparative case analysis of information technology transfer. J. Tech. Transfer 23(3), 39-50.
Sharma, P., Melin, L., Nordqvist, M. 2014. Future of Family Business Studies, 2007, 1-22, in L. Merlin, M. Nordqvist, M. and P. Sharma (Eds.). The Sage Handbook of Family Business. London, UK: Sage Publications LTD
Speckbacher, G., Wentges, P. 2012. The impact of family control on the use of performance measures in strategic target setting and incentive compensation: A Res. note. Manag. Accounting Res. 23 (1), 34-46.
Szyliowicz, D., Galvin, T. 2010. Applying broader strokes: Extending institutional perspectives and agendas for international entrepreneurship research. Int. Bus. Rev. 19(4), 317-332.
Talke, K., Salomo, S., Kock, A. 2011. Top Management team diversity and strategic innovation orientation: The relationship and consequences for innovativeness and performance. J. Product Innov. Manag. 28(6), 819-832.
Zahra, S. A. 2003. International expansion of US manufacturing family Bus.es: The effect of ownership and involvement. J. Bus. Ventur. 18(4), 495-512.