The ownership types influence on internationalization strategy : A case study on how and why ownership type influences firms´ internationalization strategy

Abstract: Internationalization opportunities for firms have never been greater due to technological advancements and market liberalisations around the world. Newly established companies show tremendous growth, huge revenues and rapid internationalization patterns despite their young age. Reasons of why certain companies grow big while others stay small has captured the interest of researchers in the international business field. Research has suggested that different types of ownership structures influence corporate strategies of firms. However, little attention has been given to understand underlying reasons of how and why certain types of ownership influence internationalization behaviour of firms. By analysing the difference in scale, scope and speed of internationalization between companies with internal, external and corporate blockholder ownership it was possible to answer how the ownership type influence internationalization strategies of firms. By analysing the degree of corporate governance, the role of owner, the autonomy of managers and the attitude of owners and managers in the company, it was possible to answer why ownership type influence internationalization strategies of firms. A qualitative case study was conducted, where the empirical data was collected through six interviews with companies having different types of owners. The authors found that the speed, scope and scale vary between the ownership types. The main reasons why include the level of autonomy and corporate governance, as well as the resources available and the attitude of the owners. This study contributes to filling the gap in the theoretical discussion concerning ownership types influence on internationalization of firms. The academic implications from this study are that future research concerning internationalization of firms must take into account the ownership type, as there are strong differences between how different ownership types internationalize, and why that is the case. Implications for owners and practitioners are that corporate governance and autonomy within the firm will dictate how much influence their attitude has on internationalization.