Family business legitimacy and foreign subsidiary establishment mode choice: An institutional and mixed gamble approach
研究家族企业在本国和东道国的家族企业合法性如何影响其选择新建投资还是并购设立外国子公司，并发现文化距离会强化这一影响。
The internationalisation of family firms is increasingly argued to be influenced by institutions external to the firm. In this paper, drawing on institutional and mixed gamble theories, we argue that family firms' choice of foreign subsidiary establishment mode varies based on the degree of family business legitimacy (FBL) in their home and host countries. We propose that both the individual and combined effects of home and host FBL influence this choice. Additionally, we contend that cultural distance between the home and host countries moderates the aforementioned effect. Our hypotheses are tested using a sample of 147 family firms over the period 2011–2019. Overall, our research contributes to a greater understanding of the role of external institutions on the foreign subsidiary establishment mode choice of family firms. • We integrate institutional and mixed gamble logics to explain family firms' foreign subsidiary establishment choice. • Family firms’ preference for greenfield increases with the degree of family business legitimacy (FBL) in their home country. • Family firms’ preference for greenfield increases with the degree of FBL in the host country they invest in. • Cultural distance strengthens the relationship between home and host FBL and a family firm's preference for greenfield.