How Does Owners’ Personality Impacts Business Internationalisation in Family SMEs?

Abstract

Despite the undoubted role of family firms in the economy, some main factors challenge their attempts for business internationalisation. These drivers are varied from organisational and environmental to individual attributes. This study tries to recognise and explore the impacts of the personality traits of managers, founders, and owners of family firms in their business internationalisation. The study used a questionnaire to collect data from a sample of 204 managers, founders, and owners of small- and medium-sized family firms to consider the relationship between personality traits: conscientiousness, openness, extroversion, neuroticism and agreeableness, and business internationalisation (BI). The hypotheses were analysed through structural equation modelling (SEM) using Lisrel. The results suggest different impacts of personality traits on facilitating the internationalisation process. According to the finding, extroversion and openness have a significant positive and agreeableness and conscientiousness have positive, less significant impacts on the tendency towards business internationalisation. Moreover, neuroticism impacts negatively significantly. Therefore, managers, founders, and owners of small- and medium-sized family firms who are extrovert, open, and non-neuroticism (tranquil) are more encaustic to making strategic decisions for extending their business to international markets.

Citation

Heydari, E., Rezaei, M., Pironti, M. and Chmet, F. (2023), "How Does Owners’ Personality Impacts Business Internationalisation in Family SMEs?", Jafari-Sadeghi, V. and Amoozad Mahdiraji, H. (Ed.) Decision-Making in International Entrepreneurship: Unveiling Cognitive Implications Towards Entrepreneurial Internationalisation (Entrepreneurial Behaviour Series), Emerald Publishing Limited, Leeds, pp. 331-347. https://doi.org/10.1108/978-1-80382-233-420231016