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The purpose of this paper is to study the internationalization of family firms, exploring specifically if the transition from family control to non-family control (losing family managerial influence) affects a firm’s export activity.

Based on panel data for Spanish firms from 2006 to 2012, a random effect tobit and probit regression and a propensity score matching were run on a sample of 225 firms moving from family to non-family control (switchers) matched with 4,213 firms remaining under family control (non-switchers).

Although from a static viewpoint family controlled firms export less than their non-family counterparts, from a dynamic perspective family firms remaining under family control (non-switchers) are associated with a fall in export activity in comparison with family firms transitioning to non-family control (switchers). Both findings are related back to the socioemotional wealth (SEW) perspective.

The findings of this study shed light on the trade-offs that family firms experience in order to balance their desire to increase their internationalization (and the risk associated with it) and their wish to maintain SEW.

The findings should encourage family owners and managers to take long-term strategic decisions leading to internationalization which, although risky, will prevent subsequent loss of SEW in terms of family control.

This work provides evidence concerning family firms’ willingness to undertake risky activities, such as internationalization, considering the threats to their wealth.

The purpose of this study is to examine how family governance and technological capabilities influence the conversion of new knowledge obtained from exports into various innovation outputs, a phenomenon called “learning-by-exporting (LBE).”

To properly examine the causal links proposed in the study, first, the control for endogeneity. Second, a propensity-score matching longitudinal analysis is conducted, a particularly robust empirical method that enhances reliability in non-experimental data, over an average sample of 663 manufacturing companies for the period 2007 to 2014.

Family firms’ innovation strategies and abilities render them more likely to convert the new knowledge from exporting into product innovation and more efficient in this endeavor than non-family firms. This diverts family firms’ typically limited resources from process innovation, and they have a smaller LBE effect than non-family firms in terms of process innovation.

The study contributes to the internationalization literature by producing a more nuanced view of the learning-by-exporting effect which considers the type of innovation outcomes developed following export activity. It also helps to identify some of the firm-specific factors that shape the relationship between exports and innovation, by empirically examining for the first time the role of family governance in innovation capabilities and decisions.