Factors Affecting Internationalization Decision Making of Family Businesses in the United Arab Emirates

Abstract

Although international expansion represents an important strategic decision that family firms must undergo to expand, limited research has been conducted on internationalization decision making in family businesses. The few studies that have examined family business have demonstrated many inconstancies regarding the factors that influence a family business internationalization decision making. Especially for young economies such as the United Arab Emirates (UAE), a limited number of studies have looked on the internationalization of family business. This study is attempting to remedy this lack of research and is examining the internationalization behavior of family businesses in the UAE, a new dynamic emerging economy. A qualitative research approach was selected, and after a thorough review of the extant literature, the major factors affecting decision making regarding the internationalization of family businesses were identified. In addition, after qualitatively analyzing six family companies in the UAE, empirical findings were collected and were compared with findings from previous studies. It was concluded that there are some common factors regarding internationalization decision making in family businesses in the UAE and rest of the world, and some of the factors are unique to a specific country, industry, or product. At the end, suggestions on how to move this field of study forward are presented.