The internationalization of family businesses became a prominent research field during the first quarter of the 21st century. Despite the considerable growth in publications, the field remains conceptually fragmented and presents empirical inconsistencies. This study reviews 380 articles published between 2001 and 2025 with the aim of clarifying the intellectual structure of the field and promoting theoretical integration. The analysis identifies four dominant research groups: (1) corporate governance, ownership, and succession; (2) strategic management and decision-making; (3) resources and capabilities; and (4) international networks. Based on this classification, we propose an integrative model called Multilevel Contingent Logic Framework. This model states that the configuration of the business-owning family determines the firm's strategic logic, oriented toward maintaining control or pursuing expansion. This logic influences the type of international network the firm uses to expand internationally. Ultimately, these decisions affect the outcomes of internationalization, which in turn provide feedback and reshape the family configuration.
This study investigates why some family firms adopt zero-leverage policies by examining heterogeneity in their goals and governance structures. While prior research has largely focused on differences between family and non-family firms, we highlight the substantial variation within the family firm population itself. Drawing on agency theory and the socioemotional wealth (SEW) perspective, we integrate both economic and behavioral explanations of financing behavior. Using survey-based measures of SEW importance (SEWi) combined with financial data from 248 Belgian private family firms, we provide the first direct test of SEW as a determinant of zero-leverage. Our results reveal that goal-based heterogeneity matters: certain SEW dimensions increase the probability of maintaining zero leverage, whereas others reduce it. Governance-related factors also play a role, as the presence of a non-family CEO and passive shareholders are positively associated with a zero-leverage stance. Moreover, by distinguishing between zero total debt and zero long-term debt, we capture differences in their respective drivers and interdependence. These findings show that financial conservatism in family firms cannot be explained solely by agency costs or classical finance theories. Instead, heterogeneity in family goals and governance provides a more nuanced understanding of zero-leverage adoption. The study contributes to research on capital structure, family firm heterogeneity, and behavioral finance, offering insights for both scholars and practitioners.
This study analyses the relationship between female leadership, specifically in the role of CEO (Chief Executive Officer), and customer satisfaction within the context of family businesses. It also examines the moderating role of the company's sustainability and innovation strategies. The study focuses on a sample of Ecuadorian micro, small, and medium-sized enterprises in a post-pandemic context, using a logistic regression model. The results show non-uniform effects that depend on the organizational context. Family businesses exhibit a lower customer orientation, which may be due to an intensification of the steward role following the pandemic. Similarly, the study finds that female CEOs drive higher levels of customer satisfaction in non-family businesses, supporting the idea of the distinct role of women in family businesses. In these companies, women appear to adopt the steward role more intensely than men, prioritizing the defense of internal interests over those of customers. The results also show how strategic orientations toward sustainability and innovation can enhance the effect of female leadership and the family nature of the business in certain contexts.
This study examines how Artificial Intelligence (AI) capability influences competitive performance in family firms through the mediating role of big data capability (BDC) and the moderating effect of family involvement in management. Drawing on survey data from 160 Tunisian family firms that adopted AI technologies between 2021 and 2025, the study employs covariance-based structural equation modeling with bootstrapping. The findings show that AI capability enhances competitive performance indirectly through the development of BDC. In addition, family involvement in management strengthens the positive relationship between AI capability and BDC, thereby amplifying the indirect effect to competitive performance. The results suggest that the performance benefits of AI are more likely to emerge when firms develop complementary data analytics capabilities and maintain strong family managerial involvement. By integrating insights from digital transformation and family business research, this study demonstrates that the business value of AI depends not only on technological capabilities but also on organizational and managerial complementarities that enable firms to transform digital investments into competitive advantage.
Family business continuity is often discussed through the lenses of governance structures, succession planning, or family commitment. However, experience shows that none of these dimensions alone is sufficient to explain why some business families successfully transition across generations while others struggle despite efforts. Drawing on observations from fourteen family business and years of professional practice in family governance and continuity processes, this article proposes the Governance-Involvement Matrix as a practical framework for understanding the interaction between family involvement and governance structures. The framework identifies four recurring configurations: the Emotional Control Trap, the Professionalized Disconnection, the Governance Vacuum, and Aligned Continuity. Each configuration reflects a different balance between family commitment and governance maturity, generating distinct risk and opportunity for continuity. The article argues that long-term continuity depends less on the strength of either dimension in isolation and more on their alignment over time. Building on this perspective, the Family Constitution is reinterpreted not as a rulebook, but as a strategic alignment mechanism that helps synchronize family aspirations, ownership intentions, and governance structures. The Governance-Involvement Matrix offers family business owners, advisors, and governance practitioners a simple diagnostic tool for understanding their current situation and identifying pathways toward sustainable continuity across generations.
This study examines whether board quality moderates the impact of an exogenous shock on the financial performance of family firms. Using a panel of 83 Mexican listed companies over the period 2014-2023, the study analyzes firm performance during the COVID-19 crisis, focusing on the role of board institutional quality measured through an index capturing board independence, non-executive representation, CEO-chair separation, and gender diversity. Employing firm fixed-effects models with robust standard errors and two alternative performance measures (ROA and ROE), the study tests whether family ownership, board quality, and their interaction shape firms' ability to withstand the shock. The results show that, while family control per se does not generate a differential performance effect during the pandemic, leverage exerts a strong and robust negative impact. Board quality displays a positive and marginally significant association with return on equity, suggesting that governance structures may play a more relevant role in protecting shareholder returns than in improving asset efficiency during crisis periods. Overall, the findings highlight the contingent nature of the family firm advantage and underscore the importance of capital structure and board institutional quality in explaining firm performance under conditions of extreme uncertainty.
This study examines how perceived organizational politics influence work-role innovation in family-owned small and medium-sized enterprises, with organizational climate as a mediating variable. Drawing on the socioemotional wealth perspective, we argue that these political perceptions in family firms are interpreted through relational, affective, and trust-based logics that shape employees' shared understanding of the work environment. Using survey data from 421 employees across 134 Mexican family-owned firms, we tested a mediation model linking organizational politics, organizational climate, and work-role innovation through regression-based mediation analysis and structural equation modeling. The results indicate that perceived organizational politics are positively associated with organizational climate, which in turn has a strong positive effect on work-role innovation. The direct relationship between organizational politics and innovation was not statistically significant, whereas the indirect effect through organizational climate was positive and significant, indicating a full mediation pattern. These findings challenge the dominant view of organizational politics as inherently dysfunctional by demonstrating their context-dependent effects in family firms. By identifying organizational climate as the central mechanism linking political perceptions and innovation, this study contributes to a more nuanced understanding of informal influence and innovation processes in family-owned firms.
We examine the antecedents of digital alignment (DA); specifically, the coherence between digital initiatives, IT capabilities, and strategic objectives in family firms. Drawing on insights from IT-business alignment and the socioemotional wealth (SEW) perspective, we theorize that family goals differentially shape alignment outcomes: restricted SEW (emphasizing family control and influence) discourages alignment, whereas extended SEW (encompassing family identification and emotional attachment) encourages it. We further posit that transformational leadership acts as a boundary condition that channels family goals into coordinated digital business fit. Using cross-sectional survey data from family enterprises and structural equation modeling, our results indicate that control and influence are negatively associated with digital alignment, while identification and emotional attachment are positively associated. Transformational leadership attenuates the negative effects of control and influence and amplifies the positive effect of identification; unexpectedly, it tempers the positive association with emotional attachment. Together, family goals and leadership explain a substantial proportion of the variance in DA. The study advances alignment research by identifying SEW-based antecedents and a leadership contingency within the family-firm context. For practice, it suggests diagnosing the prevailing family goals and developing leadership that pairs inspiration with integration to ensure that digital initiatives remain strategically aligned.
This article offers a conceptual analysis of an under-researched, yet widely used, family governance mechanism, namely the family constitution. It identifies what is understood by the term family constitution, reviews the existing literature, and highlights the major roles associated with it. Family constitutions appear to perform two main roles: avoiding conflicts and fostering a shared vision and commitment among family members. Using agency and stewardship perspectives, our paper anchors each role in a well-established theoretical framework. Furthermore, our conceptual analysis moves beyond this theoretical opposition and reconciles both views under the lens of regulatory focus theory (RFT). As such, this article offers a unifying integrative theoretical framework that provides a better understanding of the multiple roles played by family constitutions to unleash the full potential of this important family governance mechanism. Based on this integrative theoretical framework, we argue that effective family constitutions must regulate both the dark and bright sides of family involvement.
Drawing on team theory based on the input-process-outcome (IPO) perspective, this study analyses the impact of socioemotional wealth dimensions (input) on the implementation of family protocols (outcome) in business families. These protocols necessarily involve communication and decision-making processes. Specifically, the study examines the influence of family members' emotional attachment to and identification with the company through intrafamily succession on protocol implementation, considering the generational stage as a moderating factor. Based on a sample of 244 Spanish business families, the results reveal that the dimensions of socioemotional wealth contribute to the implementation of a protocol in second-generation business families.
Family firms are often regarded as more resilient than non-family firms, yet little is known about how this resilience develops from family-specific resources, particularly in emerging economies. This study explores how family capital-human, social, and financial-helped Indonesian family firms navigate the challenges of the COVID-19 crisis. Drawing on a multiple case study of four family-owned SMEs, we adopted an abductive approach, combining in-depth interviews with secondary data to build theory from context. The findings show that human capital, such as intergenerational learning and role flexibility, enabled firms to adapt quickly, while social capital, built on trust and long-term relationships, supported continuity and renewal. Financial capital acted as a buffer but was less central than expected. Overall, resilience emerged not from individual resources but from the interaction of these capitals. The study contributes to theory by reframing resilience as a relational capability embedded in family and cultural context, rather than as a static firm attribute. For practice and policy, the study highlights the importance of strengthening family members' commitment, intergenerational skills, and relational networks, while deploying financial capital strategically to ensure continuity.
This study examined how entrepreneurial personality traits influence perceived succession success, considering the daughter successor's willingness to lead as a mediating factor. This study targeted the daughter successors designated as chairwomen or managing directors in the small-family business (S-FB) retail sector. A purposive sampling technique was used, and the sample size was 236. Using trait activation theory, we induced two filter questions to determine the unbiased relationship of exogenous, endogenous, and mediating variables. The daughter successor's innovativeness traits have a positive significance, while internal locus of control and autonomy traits have non-significant associations with perceived succession success. Daughters with traits of innovativeness and a strong internal locus of control show a positive significance, whereas autonomy does not significantly relate to their willingness to take on leadership roles. Furthermore, the daughter successor's readiness to lead partially mediates the relationship between innovativeness and perceived succession success, fully mediates the connection between an internal locus of control and succession success, and shows no mediation between autonomy traits and perceived succession success in S-FB. The successor's unwillingness to lead results in succession failure and the closing down of family businesses. Through the support of trait activation theory, this study revealed that the allocation of job responsibilities and the provision of values, traditions, and cultural cues congruent with the successor's personality traits not only increase her interest in leading but also enhance the likelihood of succession success for her family business..
This study explores how business families enact and interrelate philanthropy and corporate social responsibility (CSR), moving beyond firm-centric perspectives to focus on the family as a civic and entrepreneurial actor. Drawing on a multiple case study of Canadian business families, we identify philanthropy and CSR as complementary practices shaped by identity, governance, and intergenerational values. Findings reveal a shift from reciprocity-based engagement to entrepreneurial social innovation, supported by governance mechanisms including decision-making, monitoring, partnerships, and storytelling. Philanthropy offers flexibility for addressing pressing needs, while CSR embeds ethical and sustainable goals into business operations. Together, these practices foster societal value and strategic alignment. The study contributes to this theory by bridging socioemotional wealth and relational governance, and by proposing five testable propositions for future research.
This paper challenges the traditional view of firm valuation, positioning the family firm, rather than the non-family firm, as the cornerstone of economic theory. We present a new theoretical framework to explain the formation of value in family firms during mergers and acquisitions (M&A), thereby addressing the long-standing valuation puzzle in this context. Drawing on institutional theory and the socioemotional approach, we argue that the emotional value embedded in ownership has two distinct yet complementary dimensions: the economic dimension, which influences cash flows through the impact that family ownership and family management have on the firm's strategy, and the institutional dimension, which reflects the appreciative aspects that family members hold regarding the firm, such as identity, legacy or sense of belonging. This dual structure redefines the interaction between value and price in both intra-family and sell-out M&As, offering a new perspective on negotiation dynamics and deal outcomes. By integrating emotional and financial logic, our proposal takes valuation theory beyond the rational paradigm and provides a basis for future empirical research and practical applications.
This study investigates the influence of the factors established by the SGE21 standard in family businesses in a Latin American country, specifically Mexico. Corporate social responsibility (CSR) is a critical issue for companies, which increasingly adopt social responsibility models for ethical, philanthropic, stakeholder-driven, or competitive reasons. However, few studies focus on small and medium-sized family businesses (family SMEs) in this context. This research has two main objectives. First, it seeks to determine whether factors such as corporate governance, customers, suppliers, employees, the social and natural environment, investors, competition, public administration, and company age influence the CSR practices of family SMEs. Second, it assesses the level of CSR adoption in these businesses according to the Ethical and Socially Responsible Management System (SGE21 standard). The study analyzes data from 65 family businesses applying four types of analysis: exploratory factor, descriptive, correlational, and linear regression, employing the Ordinary Least Squares (OLS) method. The results indicate that most family businesses exhibit an intermediate level of adoption of the t SGE21 standard indicators. The key factors influencing CSR in family SMEs are corporate governance, suppliers, employees, and the social-natural environment. This research contributes to the existing literature by providing insights into CSR from the perspective of Latin American family businesses. It highlights that, even without prior knowledge of the variables and indicators established by the SGE21 standard, these businesses actively engage with CSR indicators due to their inherent commitment to social responsibility. Furthermore, the findings underscore the adaptability of the SGE21 standard for implementation in Latin America.
Power dynamics play a pivotal role in shaping governance, decision-making, and interpersonal relationships within family businesses, which operate as hybrid organizations at the intersection of family and business systems. This paper examines the unique manifestations of power in the business family, utilizing French and Raven’s taxonomy as a theoretical foundation and contextualizing power across the four governance dimensions: family, ownership, direction, and execution. We propose recommendations for an effective exercise of power in family firms in order to achieve the desired results in relation to the company, but at the same time preserving positive family outcomes. Finally, we highlight the importance to conduct specific research on power dynamics in family firms and propose avenues for future research.
It is often assumed that family ownership, which consists of individuals who share a common history and values, is homogenous. However, family owners exhibit varied patterns of engagements toward ownership because of differences in their roles, goals, needs and expectations within the family and the business. The research gap lies in the limited understanding of the heterogeneity among family members in relation to ownership. To address this research gap, this article adopts a configurative approach to develop a typology of family owner styles grounded in a psychological perspective and to validate it empirically. The proposed classification model combines two psychological states—agency stewardship intention and harvesting-creation motivation—which identify four distinct family owner styles: Active, Intra-Entrepreneurial, Entrepreneurial, and Detached owners. Additionally, by bridging the gap between academia and practice, this study presents a free access self-assessment online application, enabling family owners to identify their own ownership style.
This study explores the emotional and relational experiences of in-laws in family businesses—an under-researched area in the family business literature. Drawing on Social Identity Theory (SIT), the research investigates whether in-laws working in Italian family SMEs experience a recurring pattern of perceived exclusion, identity frustration, and career dissatisfaction. Based on survey data collected from 158 in-laws working in Italian family firms, the study identifies a multifactorial configuration comprising five interrelated factors: perceived unfair treatment by the founder and siblings-in-law, identity frustration, career dissatisfaction, and intention to leave the family business. These factors are significantly and positively correlated, and all are negatively associated with self-categorization as a family member. Gender differences also emerged, with sons-in-law reporting higher frustration and stronger self-categorization compared to daughters-in-law. By applying SIT to intra-family dynamics, this study extends existing theory to examine how ambiguous identity and group membership shape in-law experiences. The findings highlight the need for more inclusive governance and integration strategies in family firms to prevent disengagement and conflict.
This study explores the roles of women—specifically daughters—in family businesses in the Middle East, a context marked by pronounced structural gender inequality and limited scholarly attention. Drawing on identity theory and a multiple case study approach, we examine how daughters in 17 family firms construct and navigate their professional identities. Our analysis identifies 26 distinct roles, which cluster into six categories: (1) management and leadership, (2) transformative and innovative, (3) ownership and succession, (4) facilitative and social responsibility, (5) identity, continuity and sustainability, and (6) operational and executive roles. The findings reveal that daughters often adopt multiple, layered, and context-dependent identities, and must engage in continuous negotiation to attain visibility, influence, and authority within the family and firm. This study contributes to the literature on family business and identity by illuminating the complex role enactment and identity work of women in patriarchal settings.
This study delves into the intricate relationship between innovation and leadership succession in family businesses. To achieve this, we conducted a systematic literature review of 36 articles spanning 2004 to 2024, with the aim of identifying key themes and research gaps. The review revealed a notable lack of integration between leadership succession and innovation. Moreover, the review allowed us to identify five key research areas—entrepreneurship, knowledge management, performance, succession management, and product and process development—providing a structured framework to examine the complex interplay between these two factors. Although innovation is a recurring topic in the literature, it is rarely linked explicitly to leadership succession and succession decisions. Consequently, this study underscores the need for further research to elucidate the specific impact of innovation on leadership succession. Future investigations should address issues such as the effect of innovation on succession decisions, gender differences in innovation and succession, and the role of intergenerational knowledge transfer, as these could provide valuable insights for family businesses. Additionally, the study outlines practical recommendations to assist both predecessors and successors in navigating this complex landscape. Key suggestions include promoting robust succession planning, cultivating an innovation-driven culture, and facilitating the transfer of practical knowledge—strategies that can foster a successful leadership transition by enhancing a firm’s capacity to innovate and adapt to change.
