Internationalization of family firms: the effect of ownership and governance

Despite family firm’s dominant role in economies worldwide, there is little empirical knowledge on their internationalization. Drawing on a sample of Austrian firms, this paper investigates the impact of family influence and various governance factors on internationalization. The findings reveal an inverted U-shaped relationship between family influence and internationalization. Family firms with medium family influence are the most internationally active companies. This indicates that concerning internationalization the advantages of being a family firm are highest when the family’s ownership share and involvement in management and governance boards is not too extensive. Additionally, neither the incumbent generation, nor the level of non-family executives in the management board, nor the existence of a supervisory board has a significant influence on going international. Since advisory boards seem to foster internationalization, they might be an adjuvant means of equipping family firms with the necessary capabilities, know-how and contacts to operate internationally.     

The role of corporate social responsibility in strong sustainability

The aim of this paper is to analyze to what extent corporate social responsibility (CSR) contributes to strong sustainability, i.e. to what extent the use of natural resources and the environment is possible, given the current level of economic activity. We therefore examine responsibilities that corporations should take in order to fulfil the requirements of strong sustainability. Based on current CSR practices and theory as well as on businesses motivations regarding environmental and social investments, we will introduce the role of corporations in influencing consumption patterns. Furthermore, we will attempt to answer to what extent responsible corporate behaviour is determined by the current economic system.     

Transformative State Capacity in Post-Collective China: The Introduction of the New Rural Cooperative Medical System in Two Counties of Western China, 2006-2008

In 2002, the Chinese leadership announced a turnaround in national welfare policy: Local insurance at county level, called the New Rural Cooperative Medical System (NRCMS), was to cover all counties by 2010. This paper addresses the main characteristics of NRCMS as an example of 'transformative state capacity' in decentralised policy fields and its feature 'responsiveness' as a market-based means of its introduction.Reviewing the modes of governance and comparing the introduction of local schemes based on two case studies of western China since 2006, this paper argues that the flexibility shown by local administrators in considering structural and procedural adjustments is the result not only of central directives but also of local initiatives. Forms of locally embedded responsiveness to the needs and perceptions of health care recipients are crucial in enhancing the accountability and responsiveness of local cadres. These new modes of 'responsiveness' or responsive regulation are important in understanding and conceptualising the transformative state capacity. Responsive settings using centrally defined local feedback loops are different from hierarchical control and the formal institutionalised representation of the interests of the local population, and are a rough but effective means of enhancing both flexibility and the efficiency of control and financing by the central state. These feedback loops, which are based on voluntary enrolment and on central state subsidies made dependent on contributions received from participants and local government, are complementary forms of governance at grassroots level.     

"The law has no feeling for poor folks like us!" Everyday responses to legal compulsion in England's working-class communities, 1871-1904

During the late Victorian period, the role of the state increased dramatically in England's working-class urban communities. New laws on labor, health, and education, enforced by a growing bureaucracy of elected and appointed officials, extended the reach of public authority into daily life on an unprecedented scale. Everyday negotiations between these officials and working-class men and women, I argue, were key moments for determining the practical impact of new social welfare policies. This was particularly true in the contestation over children's compulsory school attendance, as I demonstrate through a close examination of the daily encounters between parents and education officials. Despite the growing size and authority of the Victorian state, working-class parents effectively mitigated the impact of the compulsory education laws on their families. They were able to do so because the categories that governed the level of enforcement—age, household economic status, health, and labor—were themselves determined through daily dialogues between parents and education officials. Parents' familiarity with the law and with the dynamics of the public education bureaucracy were key factors in these negotiations, as were internal fractures within the Victorian state itself. Working-class parents, and mothers in particular, also countered officials' moral policy justifications with their own discourse of right and wrong, which focused on the legitimacy of parental authority, an insistence on just treatment, and the elevation of household needs over the laws' requirements.     

Digitalization in the financial industry: A contingency approach of entrepreneurial orientation and strategic vision on digitalization

Technology is rapidly changing the financial industry. Banks, in particular, are faced with a shift from traditional, interpersonal forms of service to digital financial services. These digital technologies are more and more becoming today’s standard in the banking sector, they challenge traditional business models, and they provide opportunities for banks to capitalize on. Building on the concept of entrepreneurial orientation (EO), this study of banks in Germany, Switzerland, and Liechtenstein aims at developing insights that explain how banks can use the tactics and strategies associated with EO to achieve superior performance in the digitalization age. The results from a survey in 102 banks show that: 1) banks that display high levels of EO report a higher level of performance, and 2) the relationship between a banks’ strategic vision on digitalization, and performance is moderated by EO. These results indicate that the sheer level of the digitalization of a bank does not affect profitability. Instead, in this time of technological change banks should develop a clear vision on digitalization that is characterized by innovation, being ahead of the competition, and a willingness to take risks.     

Drivers of internationalization success: a conjoint choice experiment on German SME managers

Internationalization is a common growth strategy for small and medium-sized enterprises (SMEs). However, SMEs face several challenges within the internationalization process. As SMEs are characterized by limited resources, managers are constantly involved in a decision-making process concerning the allocation of the SMEs’ resources. Therefore, internationalization can be understood as a complex, multidimensional decision process. Based on a set of 2244 internationalization decisions made by German SME managers, the present study examines how eight strategic and structural factors drive the perceived international success of SMEs. When applying conjoint choice analysis, the results suggest that especially equity financing in the internationalization process, an appropriate market selection as well as proactive motives, and a long-term scope can drive SMEs’ international success. Moreover, it becomes evident that strategic factors are more relevant for successful internationalization than structural factors.