Family Firms and the Choice Between Wholly Owned Subsidiaries and Joint Ventures: A Transaction Costs Perspective
| Autor: | Maria Cristina Sestu, Antonio Majocchi |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Transaction cost
Economics and Econometrics Family business entry mode 05 social sciences Perspective (graphical) Control (management) Subsidiary Family firms entry mode transaction cost economics joint venture wholly owned subsidiary Joint venture wholly owned subsidiary joint venture 0502 economics and business 050211 marketing Joint (building) Business transaction cost economics Business and International Management Mode choice Family firms 050203 business & management Industrial organization |
| Zdroj: | Entrepreneurship Theory and Practice. 44:211-232 |
| ISSN: | 1540-6520 1042-2587 |
| DOI: | 10.1177/1042258718797925 |
| Popis: | We examine the effects of family control on entry mode choice by integrating Transaction Costs Economics with the family business literature. Using a dataset of 951 foreign investments, we investigate the role of family involvement on entry modes. After controlling for endogeneity, we find that if both the investing and the local firm are family firms, forming a joint venture is preferred, while if only the investing firm is a family firm, a wholly owned subsidiary is more likely. Results show that family control has an important impact on entry modes, an hypothesis that has not yet been fully explored. |
| Databáze: | OpenAIRE |
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