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Leveraging New Knowledge: The Learning-By-Exporting Effect on Leading and Lagging Family Firms

This study analyzes how family control influences the conversion of knowledge input obtained from exports to various innovation outputs, a process that is referred to as learning by exporting. We thus contribute to an emerging research area that focuses on the analysis of factors that have an opposite effect in innovation input, and in their conversion to innovation output. We argue that given the owners’ higher authority, wealth concentration and pursuit of nonfinancial goals, family firms are more reluctant to engage in internationalization and innovation activities than their non-family counterparts, but are able to more efficiently leverage their exposure to foreign markets in terms of innovation outcomes. We base our research on a sample of 1,800 firms for the period spanning from 2007-2014 to test and provide a dynamic view of these relationships in the areas of exporting, learning and innovation. The empirical findings support our hypotheses. We further argue and empirically demonstrate that the ob...