Authors: Dina Frutos-Bencze
Addresses: Saint Anselm College, Joseph Hall-Room 210, 100 Saint Anselm Drive, Box #1692, Manchester, NH 03102-1310, USA
Abstract: Central America has been characterised by the large presence of family business groups (FBGs). The objective of this study is to gain insights about the internationalisation and diversification strategies of selected FBGs. In addition, the study examines how networking influences these strategies. Internationalisation and agency theories provide the theoretical framework for the study. The findings reveal three insights: first Central American FBGs have taken a long time to internationalise reflecting the challenges related to the economical and historical development of the region. Second, the diversification of the FBGs into various sectors of the domestic economies is a key determinant of the internationalisation strategy. Third, the ownership structure and family networking linkages also determine internationalisation strategies.
Keywords: family business groups; FBGs; internationalisation; diversification; ownership; networking; Central America.
International Journal of Business and Emerging Markets, 2017 Vol.9 No.3, pp.198 - 215
Received: 03 Nov 2015
Accepted: 30 Oct 2016
Published online: 18 Sep 2017 *