Are some family firms more cautious than others when expanding abroad? Research has long offered mixed answers to this question. A new meta-analysis by WU Vienna now brings clarity to the debate. Drawing on data from around 33,500 family firms, most of them based in Europe, the study shows that differences in management structures – such as the composition of the top leadership team, the generation in control, and the cultural context – play a decisive role in determining how extensively family firms internationalize. For countries like Austria, which are strongly shaped by family-owned businesses and oriented toward exports, the findings offer valuable insights for corporate practice and economic policy.

Family leadership can slow down international expansion

“You can’t treat all family firms as a single category. But one thing is clear: Firms in which family members hold key operational leadership positions tend to be less internationally oriented,” says Ilaria Gallegati, assistant professor at the Institute for International Business at WU Vienna.

When a family member serves as CEO, family firms expand abroad less extensively. A board dominated by family members also has a negative impact. The reasons are varied. “In complex situations, family firms often rely on affect‑based decision-making that prioritizes the home market,” Gallegati explains. At the same time, she emphasizes, “There is substantial variation depending on the cultural context in which family firms operate.”