Going Global: How Personality, Networks, and Family CEOs Drive International Ambition in Family Businesses

Hey there! Let’s chat about something pretty cool and super important for businesses, especially those run by families: heading overseas. We’re talking about *international entrepreneurial intention* (IEI), which is basically how likely a company is to really *want* to expand beyond its home turf. It’s a big deal for growth, you see.

Now, I’ve been digging into what makes this happen, particularly in family-owned small and medium-sized enterprises (SMEs). These aren’t just any businesses; they’ve got that unique family vibe, which changes things up a bit compared to regular companies. You’d think maybe family firms are cautious, sticking close to home, but sometimes they’re surprisingly bold on the global stage. It’s a bit of a puzzle, and that’s what makes it interesting.

The Global Dream for Family Businesses

So, picture this: the world got smaller, right? Internationalization isn’t just for the big guys anymore. It’s an *entrepreneurial process*, full of innovation, taking risks, and being proactive across borders to create value. I reckon integrating ideas from both entrepreneurship and international business gives us a much clearer picture of what drives this.

For SMEs, this is crucial. And within the SME world, family businesses are a massive chunk. Their decision-making can be different because, well, family is involved! This family angle can lead to long-term thinking or, sometimes, a bit more caution. The research out there is a bit mixed, which just tells me we need to look closer at what *really* pushes their IEI.

It Starts with the Person

At the heart of any SME, especially a family one, is usually a key decision-maker, often the entrepreneur or CEO. Their personal outlook? It totally shapes where the business goes. If they’re dreaming of global markets, the company is more likely to follow.

A big part of this is having a proactive personality. Think of someone who doesn’t just wait for things to happen but goes out there and makes them happen. They spot opportunities, they influence their environment, and they’re the kind of folks who initiate and keep pushing for international moves. This idea fits nicely with the Theory of Planned Behavior (TPB), which suggests our intentions (like wanting to go international) are strong predictors of our actions. A proactive person is just more likely to form that strong intention.

But hey, personality isn’t everything. It doesn’t work in a vacuum.

It’s All About Who You Know

This is where network involvement comes in. For family businesses, especially, connections are gold. The entrepreneur’s interactions – with other businesses, with social contacts, even with intermediaries – are essential for internationalization. Think of it like this: networks help firms discover new opportunities, grab knowledge and experience they don’t have internally, and basically overcome limitations.

The network theory perspective is super helpful here. It sees internationalization as building and developing relationships in the international market. It’s less about just competing and more about cooperation and coordination. For SMEs with limited resources or international experience, networks are indispensable. They provide access to resources, help identify opportunities, guide market strategy, and can even speed things up.

We usually talk about two main types of networks:

• Social Networks: These are informal, personal connections – friends, family (even those not in the business), people you know outside of formal work. They offer emotional support and can be a source of informal business info.
• Business Networks: These are formal, inter-firm relationships – suppliers, customers, partners, industry associations. They’re all about organizational interests and formal business operations.

Both are crucial, and being embedded in these structures can really boost an entrepreneur’s perception of opportunities.

The Magic Mix: Personality Meets Networks

So, we’ve got proactive personality and network involvement. How do they play together? Well, it turns out they’re pretty intertwined. Proactive entrepreneurs aren’t just sitting back; they’re actively building and leveraging their networks. They have the skills and drive to connect with others, which builds social capital.

This connection is key because networks can actually *mediate* the relationship between personality and how the entrepreneur *perceives* entrepreneurial opportunities. A proactive person uses their networks to find opportunities, and those networks shape whether they see those opportunities as desirable (worth pursuing) and feasible (doable). It’s like their personality gives them the push, and their networks give them the map and the tools.

This idea fits back with TPB – personality influences perception (desirability and feasibility), and perception strongly influences intention. Networks are the bridge connecting that proactive drive to seeing concrete international possibilities.

The Family Factor: When the CEO is One of Us

Here’s where the family business context gets really interesting. Family firms have unique cultures and power structures. Sometimes they’re super innovative; sometimes they’re more conservative. But having a family member as the CEO? That seems to make a difference.

Family CEOs often have a longer-term perspective and are deeply committed to the family-business relationship. This can make them more proactive in engaging with networks. They might leverage existing family ties within their networks, adding a layer of trust and loyalty that formal business relationships might lack.

What this study found is that the family CEO role actually *moderates* the relationship between a proactive personality and network involvement. In plain English? When the CEO is a family member, that proactive personality has an even *stronger* impact on how involved the entrepreneur is in networks. It’s like the family CEO position amplifies the proactive drive to connect, potentially leading to better network use and, ultimately, a stronger push towards internationalization.

What the Study Found (The Nitty-Gritty)

This research looked at 125 CEOs from Spanish family SMEs using surveys and some fancy statistical modeling (PLS-SEM, if you’re curious about the details). What did the numbers tell us?

* Yep, a proactive personality is positively linked to how entrepreneurs *perceive* entrepreneurial opportunities (seeing them as desirable and feasible).
* And yes, network involvement (both business and social networks) is also positively linked to that perception.
* Crucially, network involvement acts as a *mediator*. A proactive personality leads to more network involvement, which in turn boosts the perception of opportunities. So, personality doesn’t just directly change perception; it also does it *through* networks.
* And the big family business finding? Having a family CEO *moderates* the relationship between proactive personality and network involvement. This means the link between being proactive and being involved in networks is stronger when a family member is the CEO.

None of the control variables (like international experience or size) seemed to have a significant direct impact in this specific model, which is interesting in itself.

Why This Matters (Real-World Takeaways)

Alright, enough with the academic talk. What does this mean for family businesses dreaming of going global?

First off, networks are *vital*. If you’re a family entrepreneur thinking about international expansion, actively building and using your connections – both the formal business ones and your informal social ties – is absolutely critical. These networks are your lifeline for market info, finding partners, and getting support.

Second, cultivate proactivity! Encourage that go-getter attitude in your leaders and even across the company. Training programs that foster initiative can help people spot and act on international opportunities. A proactive culture makes it easier to leverage those networks effectively.

Third, the family CEO has a unique advantage. If you’re a family member leading the company, your position can amplify the benefits of your proactive personality in building networks. Leverage that trust and those deep relationships to open doors internationally.

Think of networks as a way to overcome the typical SME hurdles like limited resources or lack of international experience. They reduce risk and uncertainty by providing reliable contacts and local know-how.

Looking Ahead

Like any study, this one has its limits. It’s a snapshot in time, so we don’t see how things change over the years as experience grows. Family businesses are also super diverse, and this study couldn’t capture all that complexity. Plus, we focused on the individual entrepreneur; there’s a whole company and country context that plays a role too.

Future research could definitely dive deeper – maybe follow companies over time, look at different types of family firms, or bring in more factors about the company structure and the country they’re in. And that family CEO role? Still lots more to explore there!

But for now, I think we’ve got a pretty solid picture: if you’re a family business leader with a proactive spirit, and you’re great at working your networks (business and social), you’re already way ahead of the curve when it comes to taking your company global. And if that leader is a family member CEO, that connection-building power gets an extra boost. It’s a powerful combination!

Source: Springer