The impact of digitalization on the internationalization propensity of Italian family firms

Abstract

Although the role of innovation and digitalization represents critical factors to succeed in the international context, there is a lack of empirical evidence on how they impact on the international propensity of family firms. We address this gap investigating to which extent family firms adopt digitalization tools and their effect on export-orientation, as well as whether the innovation can play a boosting role for family decision makers. Based on a survey of 2,500 Italian firms carried out in 2015 by Italian Chambers of Commerce, we find that family firms face more difficulties in undertaking digital transformation decisions, since they can weaken family SEW endowment but digitalization solutions enable the international propensity of family firms, bridging the gap with their non-family counterparts. Theses results advance the current debate on risk preferences of family firms, taking into account firm conditions, in terms of digitalization and innovation equipment, under which family owners make strategic decisions.