Outcome-Based Imitation in Family Firms' International Market Entry Decisions.

This study examines the effects of family involvement on international market entry. Bridging theories of interorganizational imitation with the notion of socioemotional wealth protection, we argue that family-managed firms are more likely to act as "intuitive statisticians," using the internationalization outcomes of industry peers to determine when to internationalize. An event history analysis of 2427 manufacturing firms supports this position. Family-managed firms' likelihood to internationalize increases as prior entrants' performance mean and variance increase. Ultimately, our study demonstrates that this imitation strategy enables family-managed firms to reduce risk and endure longer in broached international markets. [ABSTRACT FROM AUTHOR]