Family Ownership, Market Development, and Internationalization of Turkish Business Groups (1925-2017)

This study investigates how heterogeneity in family ownership affects the internationalization of business groups at different levels of market development. Building on the family business and corporate governance literatures, we hypothesize and find that coalitional family ownership increases, but majority family ownership decreases, the degree of internationalization. Moreover, internationalization declines when control is passed from the founder to later generations. Market development strongly influences the relationships between different family ownership types and internationalization. Our study suggests that family ownership can both hinder and facilitate internationalization depending on how it is dispersed and on the level of market development.