The alchemy of family enterprises' internationalisation: Dexterous movers or prodigal laggards?

Our empirical study among 112 German firms investigates how psychic distance, cultural distance and relative perceived performance impact the speed of internationalisation among family firms vs. non-family firms. Using partial least squares structural equation modelling, we uncovered two significant findings: family enterprises internationalise significantly slower than non-family enterprises and psychic distance is a distinct internationalisation barrier for family enterprises. Further, active motivation for success remains a driving force, while a phlegmatic pace can be observed once a saturation effect has occurred. Accordingly, firms with a medium level of relative perceived performance approach international markets proactively. Focusing on perceptions of the decision maker in family vs. non-family firms, we offer a nuanced perspective on internationalisation speed. The observed effects indicate that actors' subjective reality impacts the proactivity of international market entry.