Family character and international entrepreneurship: A historical comparison of Italian and Spanish ‘new multinationals’

Although family firms are traditionally associated with low levels of internationalisation, this paper shows that family ownership can generate opportunities for international entrepreneurship related to the exploitation abroad of the expertise and social capital developed at home. Specifically, it argues that family character favours international expansion in at least three ways: (1) by granting more freedom to the managers of the company to develop their business model; (2) by facilitating the transfer to, and exploitation of, this model in foreign markets; and (3) by making the adoption of governance structures based upon trust easier. Drawing on a comparison between the business history of selected Spanish and Italian ‘new multinationals’, support is found for these hypotheses.