Family firms and the governance of global value chains
- Author(s)
- Francesco Debellis, Emanuela Rondi, Peter J. Buckley, Alfredo De Massis
- Abstract
The current evolution of global value chains (GVCs) calls for moving beyond the “unipolar” view of lead multinational enterprises (MNEs) as sole rulers to examine how their characteristics and those of partner firms affect GVC governance.
In response to this call, we focus on family firms, which are the most ubiquitous organizational form worldwide and represent the majority of firms participating in GVCs. Unlike non-family firms, these organizations face distinct mixed gambles, driven by both economic and non-economic goals. However, internalization theory and the associated global factory model, which explain GVC governance, rely solely on economic assessments, limiting our understanding and predictability of MNE behavior. Therefore, in this study, we show how location decisions, degree of internalization, and relationship management in GVCs differ from the conventional global factory model when family firms are involved as lead MNEs and/or partners.
By analyzing how comparative efficiency considerations change when family firms are involved, we offer implications for internalization theory and provide a more comprehensive framework for understanding control and trust dynamics in GVCs. Thus, we pave the way for future research to revise and enrich international business theories, taking into account the distinctiveness and heterogeneity of family firms.- Organisation(s)
- Department of Marketing and International Business
- External organisation(s)
- Free University of Bozen-Bolzano, IMD Business School, Lancaster University, Zhejiang University (ZJU), Università degli Studi di Bergamo, University of Manchester
- Journal
- Journal of International Business Studies
- Volume
- 55
- Pages
- 962-975
- No. of pages
- 14
- ISSN
- 0047-2506
- DOI
- https://doi.org/10.1057/s41267-024-00716-4
- Publication date
- 07-2024
- Peer reviewed
- Yes
- Austrian Fields of Science 2012
- 502016 SME-research
- Keywords
- ASJC Scopus subject areas
- Economics and Econometrics, General Business,Management and Accounting, Management of Technology and Innovation, Business and International Management, Strategy and Management
- Portal url
- https://ucrisportal.univie.ac.at/en/publications/82225da7-f2aa-4ca8-bf1a-1fff4321d092