New IE Articles — June 2021

Global Strategy Journal – DOI:

Location capabilities, institutional distance, and start-up survival

Carla V. Bustamante, Sharon F. Matusik, Jose Miguel Benavente

Location considerations play a key role in shaping venture performance. Using data from the largest accelerator in the world, we examine the effects of institutional distance and location capabilities on international start-ups’ survival rates. We find that international start-ups’ survival is shaped by whether it internationalizes to a country with stronger or weaker institutions than those in its home country. Further, the interaction between the directionality of institutional distance and location capabilities is important such that ventures that develop location capabilities in contexts of positive institutional distance experience greater survival rates. Through this study, we make an important theoretical contribution at the intersection of institutional and resource based theory by developing more granular knowledge about institutional dynamics across home and host countries.

European Journal of International Management – DOI:  10.1504/EJIM.2020.10022506

Born Global phenomenon: a critical review and avenues for future research

Md Imtiaz Mostafiz, Murali Sambasivan, See-Kwong Goh 

The phenomenon of Born Global has received significant attention by international business scholars because of its distinctive characteristics. Several theories, perspectives and frameworks have been adapted to investigate and scrutinise the characteristics of Born Global phenomenon. This study aims to review and evaluate critically the literature to (1) discuss the diverse theoretical approaches, (2) discuss the findings from qualitative and quantitative studies, (3) develop holistic conceptual framework, and (4) propose avenues for future research. The in-depth critical literature review includes the analysis of 230 articles published in peer-reviewed journals over a 24-year time-span between 1993 and 2017. The result shows that the interest in the Born Global research has increased gradually. Both theoretical and empirical scholarships have contributed significantly to this interest. Based on the results, a theoretical model has been developed to describe the unrivalled factors to achieve Born Globals’ success.

European Journal of International Management – DOI:  10.1504/EJIM.2019.10022991

Internationalisation of family firms: the role of networks and coopetition   

Sascha Kraus, Andrea Mauracher, Andreas Kallmuenzer, Johanna Gast, Andrea Calabro 

Whether and to what extent socioemotional wealth (SEW) influences family firm internationalisation is currently a highly debated topic in family business research. We add the network approach to the debate and, specifically, investigate whether business networks affect family firm internationalisation. We also examine how international entrepreneurial orientation (IEO), as an internal factor, and coopetition, as an external factor, mediate that relationship. We test our hypotheses on a sample of 122 internationally active family firms. Our main findings suggest that business networks positively affect family firm internationalisation if mediated by IEO and negatively if mediated by coopetition. Strong SEW concerns moderate these effects divergently: while SEW negatively affects the positive mediation of IEO, it strengthens the negative mediation of coopetition. These results contribute to our understanding of the importance of networks and entrepreneurship in family firm internationalisation, as well as to the context-specific relevance of socioemotional and coopetitive behaviour.

Entrepreneurship Theory & Practice – DOI:

Family Business Growth Around the World

Ivan Miroshnychenko, Alfredo De Massis, Danny Miller, Roberto Barontini

Growth is important for the long-term success of a business. Regrettably, the impact of family influence on firm growth is largely neglected. We examine whether family firms have a higher growth rate than their nonfamily counterparts. Based on a large sample of firms across 43 countries over a 10-year period, we show that family firms on average have higher growth rates than nonfamily firms, and this positive effect is greater for family firms operating in strong national institutional environments which are less corrupt, more democratic, more subject to rule of law, and have effective government policies. We also find that the positive effect of family influence on firm growth varies significantly across different types of family firms and different business cycles. These findings show that family control has an economically significant impact on growth rates and important implications for both family firm theory and practice.