Family Control And Internationalization Choice:A Study Of The Moderating Effects Of Professional Management And Marketization

The "going out" and the wave of domestic innovation and entrepreneurship have made the internationalization strategy a major choice that many large enterprises and even small and medium-sized enterprises must face.As a typical enterprise organization in the internationalization of local enterprises,family business has become the backbone of China's real economic development.However,because family factors tend to be emotionally affiliated,conservative and localized,the internationalization of family businesses often lags behind non-family businesses in the life cycle of enterprises.In order to cope with global competition and gain opportunities for growth in the international market,the family business has already set a new starting point,whether to carry out international business,how to face the uncertain risks in the internationalization strategy,and then integrate resources at the core of the world.Competitiveness has become an important problem for family businesses in China.The control of family businesses is closely linked to the strategic transformation of international expansion.How to balance and effectively manage the strategic goals of maintaining family control and pursuing growth is a key issue for the growth of family businesses.With the advancement of the family business life cycle,family businesses may give management rights in exchange for scientific governance,and focus on professional managers with rich experience and deep professional knowledge.However,due to the characteristics of the duality of family and enterprise,whether the introduction of professional managers in family businesses can be questioned,and the influence of professional managers on the strategic decision-making of family enterprises is also lack of discussion.In addition,China is currently in the process of transitional economic development.In general,it seems that the level of marketization is not high and the degree of regional development is different.Internationalization is an important decision of the family business,and it is undoubted that it will be affected by the market environment in which the enterprise is located..Therefore,this thesis reviews and combs the relevant literature on the internationalization of family business in theory,and deeply explores the possible relationship between family control and internationalization level based on social emotional wealth theory,managerial power theory and resource advantage theory.And combined with the reality of China,the mechanism of the relationship between professional managers and marketization is proposed.In terms of empirical exploration,we first collected the family business data listed on the main board of Shanghai and Shenzhen stocks in 2009-2016,and then studied the measurement model of the relationship between design variables.Through data analysis,we examined the impact of family ownership control on the degree of internationalization.Investigate the regulatory effect of professional managers and marketization in the relationship between the two.The test results show that the family business ownership control has a negative relationship with the degree of internationalization.The specific performance is:the greater the proportion of family members,the stronger the desire to achieve and maintain family control.According to the social emotional wealth theory,because the family's main wealth is held in the family ownership,in the face of international risks,the family has A more intense loss aversion characteristic tends to have a negative attitude towards internationalization in strategic decision-making.Secondly,the employment of professional managers in family businesses can weaken the negative relationship between family equity control and internationalization.Professional managers mainly influence the strategic decision-making of family business internationalization mainly because of their prestige power,expert power,structural power and owner power.Finally,in the case of a high degree of marketization,it can enhance the negative relationship between family equity and internationalization.According to the theory of resource advantage,the degree of external marketization means that the development of various factor markets is high,and family businesses can accumulate more special assets for localization through full interaction with the external environment,and can at a lower cost.Keeping these special resources,therefore,is more inclined to operate in the country.This paper theoretically pays attention to the fact that in the context of China's defensive culture,social and emotional wealth more reflects the "dark side",that is,the control of short-sightedness to avoid the loss of social emotional wealth,and the impact of short-sightedness on the international decision-making of family businesses.It has expanded the research on the relationship between social emotional wealth and the internationalization of family business.It enriches the research dimension of social emotional wealth.Secondly,from the perspective of professional managerial power,the study of the influence of professional managers'power composition on the family business internationalization decision-making enriches the application scope of managerial power theory.Finally,this paper examines the relationship between family business equity control and internationalization from the perspective of domestic marketization degree,and proves from the empirical point of view that regional marketization degree is a key variable to study the behavioral behavior of listed family enterprises and their influence drivers.To make up for the gaps in domestic research in this field.Based on theoretical analysis and empirical test,this paper argues that in thecontext of China's encouragement of private enterprises to "go global",guiding family businesses to carry out international operations should consider the pursuit of family members' social and emotional wealth goals,and carry out internationalization in order to improve business performance.It is based on a reasonable grasp of corporate ownership and a scientific governance model.The participation of professional managers can provide a balanced force for enterprises,making the strategic decisions made by enterprises more comprehensive and forming complementary effects of resources.At the same time,family business leaders need to adjust the family internationalization willingness according to the degree of marketization in the domestic region and the dynamic degree of the industry environment,and take effective measures to improve the strategic flexibility of the family business to respond to the dynamics of the domestic industry market environment.Improve the scientific nature of international decision-making.