Whose international experience matters more? Decision-makers with international experience in Chinese family firms

Purpose The purpose of this study is to examine if the international experience of a family firm's chairman, second-generation managers and other top managers all have impacts of different strengths using information about Chinese family firms' international expansion. Design/methodology/approach Matching tactics and dynamic Heckman 2-stage analysis were applied to data on 766 publicly-listed Chinese family businesses covering 2008-2014. Findings The international experience of the chairman, second-generation family managers and other senior managers all were found to correlate with the proportion of a firm's revenue earned abroad, as well as with the number of its cross-border mergers and acquisitions. The impact of a chairman's international experience is stronger than the impact of the other two groups when internationalization is measured in terms of the proportion of revenue earned overseas. The second-generation managers' international experience is the most influential when internationalization is measured in terms of the number of cross-border mergers and acquisitions. Originality/value This paper bridges agency theory with upper echelons theory in the context of the family business. The findings contribute to the scholarly understanding of family business by illuminating the mechanisms through which second-generation managers may influence family firms' internationalization. They also enrich the knowledge of family firms in China.