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| Family Firms’ Outward Foreign Direct Investment and Professional Management |
| XIAO Xiao，MA Jun，LI Xinchun，LI Shuxian，YAO Zhenjiu |
| 1. Guangdong University of Foreign Studies, Guangzhou, China; 2. Jiangnan University, Wuxi, Jiangsu, China; 3. Sun Yat-sen University, Guangzhou, China;4. University of Science and Technology of China, Hefei, China |
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Abstract Based on institutional isomorphism theory, this study explores the influence on the internal governance structure of family firms when they are embedded into different institutional logic in China and abroad through Outward Foreign Direct Investment (OFDI)and suggests that OFDI will bring pressure of institutional isomorphism to family firms and then affect their professional management. Results of empirical analysis using panel data of family firms listed in Shanghai and Shenzhen stock exchanges from 2005 to 2019 shows that:①The larger the scale and breadth of OFDI, the higher the professionalism level of the top management team; ②The institutional distance between the host country and the home country will enhance the role of OFDI in promoting professional management; ③The level of foreign investment in the region where the firm is located will weaken the motivation of family firms to improve professional management in the process of OFDI. This study deepens the theoretic framework of institutional isomorphism behavior when organizations simultaneously embed in different institutional logics, which has practical significance for the internationalization growth and governance transformation of family firms.
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Received: 22 May 2020
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