Multinationalization of Family Firms from India: The Role of Socioemotional Wealth

We investigate the multinationalization strategy of family businesses from an important emerging market, India. Based on insights from international business, emerging market multinationals and socioemotional wealth literature, we assess how familial heterogeneity may impact various dimensions of their multinationality, namely the scale, scope and direction of it. The hypotheses are tested on 278 family owned Indian firms listed on the S&P BSE 500 index covering a six-year period from 2007-08 to 2012-13. We find that differences in family involvement alter the perceptions of potential gains and losses to socioemotional and financial wealth; thus impacts different dimensions of multinationality differently.