Family firms' risk perception: empirical evidence on the internationalization process

Purpose - This paper has as its aim to research the factors affecting the risk perceived by family firm executives in relation to international activity. Design/methodology/approach - The paper examines the factors which can modify risk perception, placing special emphasis on those arising from the coincidence of ownership and management in family businesses. Findings - Focus on the international commitment assumed by family firms and using a sample of 92 Spanish family companies, this paper shows that risk perception decreases with the presence of the first generation and the size of these organisations. Additionally, it has been found that the risk perceived is higher when the firm advances in its international commitment level. Practical implications - If family firms know the factors which can affect the risk perceived about international activity, they will stand a better chance to handle them properly with a view to move forward in their internationalisation process. Originality/value - An effort is made in this paper to deal with the risk perception associated with international activity in family firms, an issue treated in a small number of research works so far.