Premium
Human capital in the internationalization of family firms
Author(s) -
Kidwell Roland E.,
FuentesLombardo Guadalupe,
SanchezFamoso Valeriano,
CanoRubio Myriam,
Kloepfer Kathryn E.
Publication year - 2019
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.22107
Subject(s) - internationalization , human capital , business , exploit , international market , human resources , competitive advantage , industrial organization , marketing , work (physics) , resource based view , resource (disambiguation) , commerce , international trade , economics , management , market economy , mechanical engineering , computer network , computer security , computer science , engineering
Research concerning the influence of human capital (HC) on internationalization strategies typically highlights skills displayed by business executives. This article is one of the few studies that examines the values, attitudes, and capabilities related to the HC of international companies. Our study attempts to understand the role that HC plays in the international commitment (IC) achieved by family and nonfamily firms and whether the HC of family firms (FFs) can be considered a source of competitive advantage in pursuing an international strategy. Partial Least Squares method is used for analyzing data collected from 270 Spanish firms. Results show HC differs between family and non‐FFs and plays a crucial role in the international strategy of FFs. Specifically, professional experience, training, and educational level, the degree of market and industry knowledge, specific skills to work in international markets, and concern for employees are superior in FFs, resulting in the achievement of higher levels of IC when compared to non‐FFs. The results should encourage managers and/or owners of these companies to exploit and effectively govern specific human resource strengths when they enter and experience growth in other markets.