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Particularistic ties and internationalisation: evidence from Taiwanese family business groups

Published Online:pp 558-580https://doi.org/10.1504/EJIM.2016.078792

Based on a panel data analysis of family business groups in Taiwan, this study investigates the relationship between location specificity and particularistic ties from the resource-based view of the firm. The results indicate that a family-owned status has a positive effect on a business group's engagement in China. It provides indicative evidence that family business groups as a whole prefer cultural and economic proximate locations. By contrast, the use of particularistic ties in foreign affiliations has a negative effect on businesses groups' engagement in the Mainland Chinese market. The results suggest that a business group's decision to engage in a foreign market is embedded in its specific socioeconomic background and the use of particularistic ties as an indigenous management practice.

Keywords

semi-globalisation, particularistic ties, resource-based view, RBV, family business groups, internationalisation, developing countries, Asia, Taiwan, family firms, location specificity, China, cultural locations, economic locations, foreign affiliations, foreign markets, socioeconomic background, indigenous management