The internationalization of small and medium-sized enterprises: the effect of family management, human capital and foreign ownership.

Research on factors affecting the internationalization of SMEs is attracting growing interest. However, only a limited number of empirical analyses have explored the question of if and to what extent the family character of the firm has an effect on internationalization decisions. Relying on data from a sample of 1,324 Italian manufacturing SMEs, this paper shows that involvement of the owning family in management negatively influences export propensity but, once the choice to go international has been made, both the degree of internationalization and geographical scope in family-managed firms are not significantly different from nonfamily-managed firms. Empirical results also show that the level of human capital and the presence of foreign shareholders in the SMEs positively influence internationalization. Innovation propensity, size, and age of the firm as well as industry characteristics are included in the analysis as control variables.