What is it about?
We show that family involvement generates some firm-specific asset that affects firm policies. We argue that family control both in the investing and target company impacts on the selected entry strategy in a foreign country. We discuss the theoretical implications of these findings.
Featured Image
Why is it important?
Recent official data show that the value of cross border M&A and partial acquisitions deals in Italy reached a new high making the Italian companies the most targeted by foreign acquisitions in the EU along with France and just after the UK. A number of these acquisitions by family and nonfamily MNCs targeted iconic brands owned by family firms such as Loro Piana, Valentino, Pomellato and Krizia. Commenting on the acquisitions on the news the managers involved in the deals often highlight the relevance of being a family firm.
Perspectives
The paper has important implications for the managers of family firms. To investigate such an interesting field of study that challenge many established principles of economic theory has been a fascinating effort.
Maria Cristina Sestu
Universita degli Studi di Pavia
Read the Original
This page is a summary of: Family Firms and the Choice Between Wholly Owned Subsidiaries and Joint Ventures: A Transaction Costs Perspective, Entrepreneurship Theory and Practice, September 2018, SAGE Publications,
DOI: 10.1177/1042258718797925.
You can read the full text:
Resources
Contributors
The following have contributed to this page
