Family firms' risk perception: empirical evidence on the internationalization process

Abstract

Purpose

This paper has as its aim to research the factors affecting the risk perceived by family firm executives in relation to international activity.

Design/methodology/approach

The paper examines the factors which can modify risk perception, placing special emphasis on those arising from the coincidence of ownership and management in family businesses.

Findings

Focus on the international commitment assumed by family firms and using a sample of 92 Spanish family companies, this paper shows that risk perception decreases with the presence of the first generation and the size of these organisations. Additionally, it has been found that the risk perceived is higher when the firm advances in its international commitment level.

Practical implications

If family firms know the factors which can affect the risk perceived about international activity, they will stand a better chance to handle them properly with a view to move forward in their internationalisation process.

Originality/value

An effort is made in this paper to deal with the risk perception associated with international activity in family firms, an issue treated in a small number of research works so far.

Citation

Claver, E., Rienda, L. and Quer, D. (2008), "Family firms' risk perception: empirical evidence on the internationalization process", Journal of Small Business and Enterprise Development, Vol. 15 No. 3, pp. 457-471. https://doi.org/10.1108/14626000810892283