• No results found

Faculty of Economics and Business Master thesis for International Business and Management THE INFLUENCE OF INTERNATIONALIZATION ON THE PERFORMANCE OF GERMAN FAMILY-OWNED FIRMS

N/A
N/A
Protected

Academic year: 2021

Share "Faculty of Economics and Business Master thesis for International Business and Management THE INFLUENCE OF INTERNATIONALIZATION ON THE PERFORMANCE OF GERMAN FAMILY-OWNED FIRMS"

Copied!
48
0
0

Bezig met laden.... (Bekijk nu de volledige tekst)

Hele tekst

(1)

Faculty of Economics and Business

Master thesis for International Business and Management

THE INFLUENCE OF INTERNATIONALIZATION ON

THE PERFORMANCE OF GERMAN FAMILY-OWNED

FIRMS

Liu Shi S1809873

(2)

Abstract

This paper tests for the relationship between internationalization and financial performance in German owned firms using a sample of 45 large German family-owned firms. This research aims to discover whether there is a relationship between internationalization and family-owned firms’ performance. In this paper, internationalization is measured by the percentage of the firms’ foreign sales. Correlations and regressions are run to analyze the relationship between internationalization and the performance of 45 German family-owned firms. Results in this paper show that 1) there is positive relationship between the proportion of foreign sales and total sales, proportion of foreign sales and total assets respectively 2) There is positive relationship between FDI and internationalization. 3) Firms can get a higher performance when they invest in the countries with a similar culture cluster. To conclude, my thesis shows that there is positive relationship between internationalization and firm performance in German family-owned firms, but causality needs to be further analyzed.

(3)

Table of contents

1. Introduction... 4

2. Literature review ... 5

The Concept Family-owned firms ... 5

The concept Internationalization... 6

Germany family-owned firms and existing literature on family-owned firms ... 8

Internationalization of family-owned firms ... 10

Research Question: ... 12

Conceptual model ... 13

3. Hypotheses development ... 14

Foreign sales and performance ... 14

FDI, wholly-owned subsidiaries and performance ... 14

Culture clusters and performance ... 15

4. Methods... 16

Sample... 16

Data gathering methods ... 16

Data analysis methods... 18

5. Results... 19

Descriptive statistics: ... 19

Hypothesis 1... 20

Hypothesis 2... 23

Hypothesis 3... 24

6. Discussion and Conclusion ... 25

References:... 29

(4)

1. Introduction

Family ownership is an important type of ownership. In the past several years, the investigation of family-owned firms became an attractive direction for the scholars (Aronoff and Ward, 1991). However, few works has addressed the characteristics and results of the internationalization process (Gallo and Garcia Pont, 1996).

To investigate the development of family owned firms, the internationalization of these firms can be seen as an important issue; because the environment is becoming increasingly international for business (Gallo and Garcia Pont, 1996). It is shown that family-owned firms represent a very important portion of the international activities of a country (Gallo and Garcia Pont, 1988).

Family-owned firms take up a high percentage of corporations in the world (Silva and Majluf, 2007). Family-owned firms are important in Germany as well. It is generally known that 60% of all the firms are held by family in Germany, and these firms contribute about 55% of GNP, and provide 58% of employment (Klein, 2000). Family ownership plays a so important role in Germany, that the investigation of the internationalization in these family-owned firms can be significant. And the result of the investigation can provide significant evidence for the firms to adjust their strategies.

As indicated above, internationalization of family-owned firms is a relevant issue to be investigated. The objective of this article is to discover the relationship between internationalization and financial performance of the family-owned firms.

(5)

2. Literature review

In the literature review part, some literature will be studied. First, the main concepts referred in this paper will be introduced. The concept family-owned firms and the concept internationalization will be discussed. Then existing literature will also be introduced.

The Concept Family-owned firms

There are various definitions of family-owned firms. Scholars hold different views about what are family-owned firm and the explanation of how family business works.

Generally speaking, there are three main directions to define the family-owned firms. First, some scholars define the family ownership by the founder of the firm. In Mcconaughy’s research, he argues that the family-owned firms are firms which are controlled by their founders. That is to say, the CEOs of these firms are the members in the founder families (Mcconaughy et al, 1987). Fahlenbrach (2005) also agree this definition. In his study, he figures that family-owned firms are firms which are founded by the CEO. Another similar definition about the family-owned firms was made by Bennedsen and his colleagues (2007). They defined the family-owned firms by the way CEO passes his position to another. In their research, if the new CEO belongs to the same family with the former CEO, this firm can be seen as a family owned firm.

(6)

non-family-owned firms by 30 percents of the shares. If the shareholder who has more than 30 percent is a family, this firm can be seen as a family owned firm.

The last main direction to define family-owned firms is to focus on the ownership rights in the firms. If the family gets a certain amount of the voting rights, this firm can be regarded as a family owned firm. La Porta and his colleagues (1999) also define the family owned business by the voting rights. If the family control more than 20% of the voting rights in the firm, this firm can be considered as a family owned firm.

In my research, I use the third direction of the definition. To be more specified, I use La Porta’s definition on the family-owned firms because to define the ownership of a firm by the stock voting rights is appropriate for a firm in the global environment. Furthermore, I decide to collect data from the stock market in Germany. Thus, to distinguish whether a firm is a family owned firm, it is proper to define the ownership by the stock constitution.

Moreover, for family-owned firm, which has a concentrated ownership, problem exists in the communication between the owners and the managers due to the culture background. First of all, it is generally accepted that the culture background of the family members has a highly consistency. And in family-owned firms, the family members have an ultimate control in the firm (Lee, 2006). Therefore, the right of the final decision belongs to the family members. In other words, the willingness to internationalize the firms of the family members is a key factor for the internationalization process. However, Culture differences create communication barriers (Javidan et al, 2005). Therefore, the culture background can affect the internationalization process.

The concept Internationalization

(7)

introduce the definition, characteristics, prerequisites and influences of internationalization,

Several Scholars define internationalization from different perspectives and conclude the characteristics of internationalization. The general idea of internationalization is used to describe the outward movement of the firms. It is also defined as “the process of increasing involvement in international operations” (Welch and Luostarinen, 1988). As stated in this definition, firms adopt internationalization in the form of investing abroad such as setting up subsidiaries abroad or selling their product abroad. Any activities which involve the international behavior can be seen as the form of internationalization. Aharoni (1966) implies that there are five elements in the decision making process of internationalization. The organization and environment, time dimension, uncertainty, goals and constraints are the essential elements in the process. These elements are the most basic characteristics of internationalization. Firms consider these elements as determinants to process the internationalization. After judging these elements, firms can decide whether they need to be internationalized and if so, they will choose a method to enter the market in the other countries. To conclude, the elements explain the complexity of the internationalization, which argue that internationalization is an interesting topic. Firms have many methods to enter the global market. Typically, setting up an agent, establishing a sales subsidiary, and opening a manufacturing factory are generally methods for firms to explore their overseas market (Johanson and Vahlne 1977). The internationalization process is always influenced by two main forces. First, the process is influenced by the psychic distance. In addition, the internationalization process is influenced by the other concrete factors such as tariffs (Johanson and wiedersheim-paul, 1975). Therefore, according to these two forces, firms have evidence to decide which method to choose.

(8)

global market is larger than the domestic market, it is also acknowledged that a larger market can bring higher complexity and higher cost. Therefore, family owned firms have to compare the external conditions to decide whether to they have to be internationalized. The second factor is the internal factors namely the organization of family-owned firms. It is generally accepted that in family-owned firms, the owners can affect the decision of the top management team. Therefore, the willingness towards internationalization of the family members is of great importance.

The third factor is the attitude of the top management team. If managers consider internationalization as a trend for firms to gain more profit, then many firms take internationalization as their business strategy (Reynold, 1997).

Internationalization brings opportunities and threats. The internationalization can help the firm to explore new market, and it can also bring labor cost advantage and material cost advantage. Internationalization also brings some threats to the firms, such as the liability of foreignness and newness, global discount and stigma of being foreign. All in all, the coexistence of opportunities and threats also determine that there is uncertainty in the relationship between internationalization and financial performance. This argument also emphasizes the significant of the research.

To conclude, in my thesis, export and foreign subsidiaries are used to investigate the internationalization. In other word, I will take foreign sales as the measurement to measure the internationalization. In addition, the elements, the opportunities and threats demonstrate that the research is necessary.

Germany family-owned firms and existing literature on family-owned firms

(9)

the GNP in Germany, research in the development of these family-owned firms can be regarded as a relevant topic.

Several scholars focus on the German family businesses. Kayser and Wallau (2002) argue that family businesses represent an important direction in the economy. They analyze the situation of family business and predict the development of family business in Germany. In Germany, family-owned firms are improved to be larger and larger. They also argue that, manufacturing firms play dominant roles in family-owned firms. In Germany, 90431 of 107094 manufacturing firms are family-owned firms (Kayser and Wallau, 2002).

When scholars investigate the family-owned firms, most of them are inclined to focus on the IPO performance of family-owned firms. Ebrbardt and Nowak (2003) have done some empirical research and they found what happened after the IPO and the effect of IPO on family-owned firms. Jaskiewicz and his colleagues also investigated the IPO of family-owned firms. They analyze the long-run IPO performance of German and Spanish family-owned firms. They found that there is a positive relationship between family involvement and long-run stock market performance. There are also some institutes in Germany who focus on the family business. WIFU (Witten Institut for family business) in Germany do research on the family business. They investigate the family brand of business, the Successful Trans-generational Entrepreneurship Practices, the challenge of SMEs etc.

At the same time, with the development of the process of internationalization, whether internationalization can improve the performance of the family-owned firms in Germany is important for these firms to make their strategies. Furthermore, family businesses are as important as stated above, researches related in this area is scarce in Europe, no mention in Germany (Jaskiewicz et al, 2005).

(10)

between firm performance and internationalization in family-owned firms in the other countries; however, they get different results from their researches. Therefore, I cannot get any conclusion from previous researches.

To conclude, according to the argument in this part, family-owned firm in Germany is necessary to be investigated. First, the family-owned firm plays an important role in Germany and these firms contribute a lot to the country. In addition, there is no direct and concrete research in this field. It is a gap in the research of family-owned firms.

Internationalization of family-owned firms

(11)

the international market. The author also finds that if the family owned companies did not enter the world market when the founders of the companies monitor it, it wouldn’t enter the world market later. And the reason that the company purchase materials from the global market is for cost and quality benefit (Okoroafo, 1999).

There are other previous researches in different countries showed conflict results about the relationship between internationalization and performance (Table 1). It is clearly acknowledged that findings are different because scholars choose samples from different countries, different industry, different years and different indicators. Therefore, an empirical research is necessary to be done in order to find out the relationship between internationalization and financial performance of family-owned firms in Germany and to indicate whether it is a right direction for those family-owned firms.

Table 1 Different findings of the relationship between internationalization and firm performance

Positive Negative None U-shape Inverted

U-shape S-shape Siddharthan and Lall, 1982 Chang and Thomas, 1989 Buckley, Dunning, and Pearce, 1977 Erramilli, 1991 Daniels and Bracker, 1989 Lu and Beamish, 2001 Grant, Jammine and Thomas, 1988

Collins,1990 Haar,1989 Geringer,

(12)

Sambharya, 1995 Hitt, Hoskission and Kim, 1997 Hsu, 2005 Gomes and Ramaswamy, 1999 Elango, 2003 Source: Hsu (2005)

In conclusion, scholars have done many researches in various fields about the internationalization of family-owned firms. However, few works have been published about the relationship between financial performance of family-owned firms and internationalization. Therefore, there is a gap in the relationship and it is a relevant topic to be investigated.

Research Question:

Internationalization is the most significant strategy that the family-owned firms have to face when the domestic market is being globalized. Prior research has found that internationalization has influence the firms in three aspects, the performance (Vernon, 1971), the structural (Stopford and Wells, 1972) and the attitudinal (Perlmutter, 1969). In my research, I will focus on financial performance of the firms because managers are eager to know that whether internationalization can lead their firms to higher performance and how this strategy can help their firms to become more competitive (Lu and Beamish, 2001).

(13)

The aim of this research is to look into whether there is any relationship between the internationalization of the German family-owned firms and their own financial performance. The research question that will be investigated in this paper is:

Is there any relationship between the performance of the German family-owned firms and internationalization?

Conceptual model

To investigate the research question, a conceptual model is conducted to enable the research explicit

Figure 1 Conceptual Model

(14)

3. Hypotheses development

Foreign sales and performance

Foreign sales is one of the crucial factors to measure the internationalization of a firm. Most scholars agree that larger export can bring higher profit to the firms. They conclude that, firms can increase their sales in the global market, which is larger than the domestic market (Cooper and Kleinschmidt, 1985; Grant et al., 1988; Majocchi and Zucchella, 2003). Studies on this relationship also show that higher degree of internationalization can lead the firms to get a better performance (Pangarkar, 2008). Therefore, I predict that foreign sales has a positive impact on firm performance.

H1: There is a positive relationship between foreign sales and the performance of German family-owned firms.

FDI, wholly-owned subsidiaries and performance

Some firms choose FDI as their mode to enter the foreign market. FDI can be seen as a promising strategic opportunity (Wagner, 2004). However, when a firm choose FDI as their mode to invest, there are always some threat elements accompanied with the investment, namely “liability of foreignness and newness”(Coviello and Mcauley, 1999; Zaheer, 1995; Zaheer & Mosakowski, 1997), “globalization discount”(Denis, Denis and Yost, 2002) and “stigma of being foreign”(Hymer, 1976). These elements increase the complexity of the investment. In addition, when a firm invests in a foreign market, they have to deal with increasing externally and internally complexities in the foreign market. Externally, they have to get used to the new and different social, legal and economic environment. Internally, they have to deal with the inner coordination in a new organization (Qian, 2002; Siddharthan& Lall, 1982).

(15)

Therefore, I can predict that if the firm chooses FDI as their way of investment, some negative impact may appear at first. And wholly-owned subsidiaries will face higher negative impact.

And after several years, when the firm overcomes the threats mentioned above, the internationalization may have a positive influence on the firm. And the wholly-owned subsidiaries, because of their properties of ownership, they would contribute higher profit to the headquarters.

However, because in my sample, only 4 firms are new to set up foreign subsidiaries and the other 41 firms are all have more than 8 years experience on FDI. So I could not test this U-shape relationship between FDI and firm performance. I limited my analysis to the following classicalhypothesis.

H2: A positive relationship exists between firm performance and the amount of FDI when firms invest abroad after a long period of investment.

Culture clusters and performance

Culture is also an indicator to influence the internationalization of a firm. Project GLOBE(Javidan et al, 2005) has divided all the countries into 10 culture clusters. As stated by Javidan et al, (2005) if the subsidiaries set up by the head-quarter are in the same culture cluster with its head-quarter, the communication between the firm owners can be easier. So I can predict that, it is easier for the family-owned firms to internationalize in the countries which are in the same culture cluster as the firm.

(16)

4. Methods

The objective of this paper is to investigate the relationship between internationalization and the financial performance of the family-owned firms in Germany. First of all we will test whether a relationship exists between internationalization and firm performance in family-owned firms. Thereafter the aim is to determine if there is a significant linear relationship between internationalization and firm performance.

The best method to answer the research question is to use the technique of correlation and linear regression analysis. Correlation can used to test whether there is a significant relationship between all variables. Linear regression analysis is a technique used for the modeling and analysis of numerical data consisting of values of a dependent variable and of one or more independent variables. The dependent variable in the linear regression analysis is modeled as a function of the independent variable. This means that this technique not only indicates if there is enough statistical evidence to prove if there is a linear relation, but it also indicates the direction of the relationship, and whether it is positively or negatively related.

Sample

In order to conduct this research, a database is set up. The dataset contains data of 45 companies. The cases are chosen from the database Amadeus 25000. Samples are selected by a series of critical conditions. First, firms should be the family-owned firms in Germany as this is the population we want to generalize to. In addition, quoted firms are chosen because of the transparency regulation for these companies can guarantee the authenticity and completeness of the data. Furthermore, the firms in this database should have international activities.

Data gathering methods

(17)

sufficient reply from the companies in the sample. Therefore, in my research, I only adopt 45 companies rather than 120 companies at the very start.

Independent Variable

Internationalization is measured by export and foreign sales (Sullivan, 1994); the most used way of measuring the internationalization.

Foreign sales: From the performance perspective, turnover is one of the main issues to

measure the corporate internationalization. Performance indicator can evaluate whether the firm is successful in the internationalization (Dörrenbächer, 2000). Foreign sales can be divided into two aspects, the demand and the supply. In the demand aspect, foreign sales equals to the sum of exports from home country and revenues of foreign affiliates minus their revenues from exports to the home country. In the supply aspect, foreign sales equals to the sum of revenues of foreign affiliates (Dörrenbächer, 2000).

The proportion of the foreign sales, which is used to measure proportion of the internationalization in a company, can be analyzed to measure the hypotheses (Anderson & Reeb, 2003).

Here the foreign sales is calculate as below:

Foreign sale=sales to the global market-sales from a foreign subsidiary to the domestic market.

FDI: FDI is measured by the amount of the FDI subsidiaries. The proportion of the wholly-owned subsidiaries is also considerate in the analysis.

Dependent Variable

ROA is taken as the dependent variable to measure the performance of the firms (Vernon, 1971; Kumar, 1984; Buckley, Dunning and Pearce, 1977; Grant, 1987).

Firm Size: Larger firms should have higher performance and DOI because of their greater

resource availability (Pangarkar, 2007). To measure the firm size, the assets of the firms is regarded as the firm size.

Total Sales: Total sales is another variable to measure the performance of the firms.

Control Variables

Industry: Prior researches show that tests in different industries get into different findings.

(18)

Business Age: Business age is a significant control variable when measuring performance. In this paper, business age is calculated as the period of how long the firms operate.

Culture: Culture is another dummy variable. If the subsidiaries are in the same cluster

with Germany, the value of this variable is 1 and if now, the value is 0.

Data analysis methods

In order to measure our dependent variable for hypothesis 1: First of all, several correlations will be run to test if there is any relationship between the variables. Correlation is run between independent and dependent variables and thereafter the correlation is run under the control variables. Second, the sample will be divided into groups by industries; correlation will be run between the dependent and independent variables in each group. Last, significant results will be picked up from the analysis in last step; (if the result is not significant, it does not make sense to make another regression) linear regression will be run in the dependent and independent variables to test which variable has an impact on the others.

In this analysis, firms are divided into groups by their main industries. I use the industry category NACE Rev 2. In NACE Rev 2, firms are divided into 9 categories. (appendix 1) For hypothesis 2: Correlation will be run in order to test whether there is any negative relationship between firm performance and FDI in the family-owned firms in Germany. For hypothesis 3: the culture index is added to the database. Culture is used as a dummy variable. If the company invest in the countries outside Europe, then the value of the variable is 1, if not, the value of the variable is 0. Then the samples are divided into two parts, the first part is firms which invest in the different culture cluster and the other part is firms which only invest in Europe. Although there are various culture in Europe, culture between countries in Europe is also more closed than the culture between country from Europe and country outside Europe.

(19)

5. Results

Descriptive statistics:

In order to be able to measure the relationship between internationalization and performance, correlations and linear regressions will be run between the chosen variables.

The descriptive statistics can be found in table 2.

Table 2 Descriptive Statistics of the variables Descriptive Statistics

N Minimum Maximum Mean Std. Deviation Foreign sales (million EUR) 45 2,47 20975,00 704,5605 3148,25327 Total sales(million EUR) 45 3,15 35784,00 3062,4269 7020,80639

Percentage of foreign sales 45 ,01 ,79 ,2722 ,22486

Return of assets 45 ,76 248,00 14,2296 36,35126

Return on shareholder funds 45 1,24 65,73 21,0624 14,75572 Return on capital employed 45 2,53 45,91 14,4349 8,64451 Percentage of wholly-owned

Subsidiaries 45 ,00 1,00 ,4501 ,23819

Number of subsidiaries 45 2,00 229,00 36,7111 42,79636

Assets (million EUR) 45 33379,00 45577000,00 4,0065E6 8,99646E6

Business age (year) 45 1,00 156,00 39,6000 46,02144

Valid N (listwise) 45

In Germany, the GNP in 2008 is 3485.67 billion (World Bank) and all the family-owned firms contribute 1917.11 billion to the GNP of Germany. In my research, the total sales of all samples are 137.8 billion, which takes up 7% of all the family-owned firms. As a result, although the samples only include 45 companies, the sample is also representative of the whole Germany by the large total sales.

(20)

longer than 10 years, 16% of these firms even have a long history which is longer than 1 century. 3 of the firms are set up in these 3 years, but after my investigation, I found that these three firms are set up by M&A in these years, not totally new firms.

36% of the firms have larger total sales per year, which is larger than 1000 million. And 38% of these firms have larger assets, which is also larger than 1000 million. These data can predict that almost one thirds of these firms are large family-owned firms. Therefore, the results can only used for the family-owned firms, not the SMEs as the other studies stated in the literature part.

As a result of the difference in the size of the firms, the foreign sales of the firms distribute from 2.47 million to 20975million, which is highly dispersed. The ROA of the samples are concentrated except one firm, the Axel Springer Aktiengesellschaft, which has a higher ROA of 248.

The inspection of the descriptive statistics is to look at the standard deviation. The percentage of foreign sales and the percentage of FDI have a lower standard deviation, which suggest that the distribution in these variables is small. Furthermore, both the standard deviation of the foreign sales and the total sales are larger is due to the diversity of the sample.

In conclusion, the sample selected is representative to measure the relationship between family-owned firms’ financial performance and internationalization. First of all, the firms selected are large family-owned firms in Germany, which contribute a large proportion in German GDP. In addition, a higher percentage of these firms have long business age, which means that the results of this research are not contingent.

Hypothesis 1

(21)

First of all, I ran the correlation between the internationalization characteristics (foreign sales, percentage of foreign sales) and the company characteristics (ROA, total sales, assets). The analysis in this part is divided into two part, first , correlation is ran in the chosen variables, and then the samples are divided into some groups by industry, and correlation is ran in those groups.

The result of the correlation between foreign sales and ROA is not significant (sig.=.915), which means that I cannot say that there is relationship between foreign sales and ROA. The results of the correlation between foreign sales and total sales is significant (sig.=.000) and the results of the correlation between foreign sales and assets is also significant (.008). There is a positive relationship between percentage of foreign sales and total sales (sig.=.964) and a positive relationship between percentage of foreign sales and total assets(sig.=.443).When adding the control variable business age, there is no significant results for the analysis(sig.=.947).

Then correlation is run in the groups divided by industry. As is shown in the table, in the second industry, relationship exist between percentage of foreign sales and return on assets (0.005), and foreign sales and assets(sig.=.030). Relationship also exist in industry 4 between foreign sales and assets(sig.=.031).However, in this industry, there are only three sample, which are less to prove the results. In industry 6 and industry 7, there are also some significant results. In industry 6, relationship between foreign sales and assets(sig.=.030) are significant. In industry 7, relationship between percentage of foreign sales and ROA is significant(sig.=.025).

In industry 1, industry 5 and industry 8, because of the small sample size, no relationship can be discovered. In industry 3, all tests show no significant relationship between the variables.

(22)

sales and ROA in industry 2(.660) A strong positive relationship exists between foreign sales and total sales(.874). A strong positive relationship exists between foreign sales and assets(.541).

Table 3 Correlation between variables by industry respectively

Industry Significant 1 Significant 2 Significant 3 Remarks

1 X X X 2 firms 2 0.630 0.005 0.030 16 firms 3 0.696 0.280 0.864 9 firms 4 0.944 0.702 0.031 3 firms 5 X X X 1 firms 6 0.411 0.993 0.030 6 firms 7 0.075 0.025 0.176 6 firms 8 X X X 1 firms

Significant 1: Correlation between foreign sales and return on assets

Significant 2: Correlation between percentage of foreign sales and return on assets Significant 3: Correlation between foreign sales and assets

Table 4 Results of Correlation:

Industry Correlation 1 Correlation 2

2 0.660 0.541

Correlation 1: Correlation between percentage of foreign sales and return on assets Correlation 2: Correlation between foreign sales and assets

After the correlation, a linear regression is run to prove the results by the correlation, as a robust check. Correlation can test the relationship between variables. Furthermore, regression can verify the relationship between the independent variable and the dependent variable.

(23)

has a positive relationship on assets of the company but the value of the relationship is not high(R=0.391). In industry 2, a higher percentage of foreign sales can lead a higher ROA(R=0.660). Foreign sales can also has a high positive relationship on total sales(R=0.874) and on assets(R=0.541).

Table 5 Results of Regression

Dependent variable

Independent

variable R Beta Significance

Total sales Foreign sales .724 .724 .000

Assets Foreign sales .391 .391 .008

Industry

2 ROA

Percentage of

foreign sales .660 .660 .005

Total sales Foreign sales .874 .874 .000

Assets Foreign sales .541 .541 .030

To sum up, hypothesis 1 is partly supported. When considering the total sales and assets as the measurement for the performance of the firms, the hypothesis is supported. When taking the ROA as the measurement for the performance, the hypothesis is rejected. When dividing all the samples into small groups by industry, industry 2, 4, 6, 7 are partly supported.

Hypothesis 2

(24)

Another analyze to test the hypothesis is to use linear regression to measure the relationship between the amount of FDI and ROA. The results show that there is a positive relationship between the amount of FDI and ROA (sig.=.001, R=.507).

The results show that the growth of the percentage of the wholly-owned subsidiaries cannot be directly linked to an increasing ROA. But the larger amount of FDI can lead to a higher ROA. Therefore, there is a positive relationship between FDI and performance of the company. The hypothesis 2 is supported.

As a result of the limitation of the data, only the amount of FDI subsidiaries and the proportion of wholly-owned subsidiaries are applied in this analysis. After the test, it is acknowledged that there is a positive relationship between the amount of FDI and ROA. In other words, the larger amount of FDI can enable the firm into a higher performance for the family-owned firms. Firms can increase their FDI subsidiaries to get a better performance for their firms.

Comparing to the studies before, it can be obviously predicted that the obstacles accompanied with FDI, such as liability of foreignness and newness, globalization discount and stigma of being foreign, did not affect the performance of family-owned firms in Germany strongly. On the contrary, FDI can lead a positive influence to the family-owned firms in Germany.

Hypothesis 3

In order to calculate the hypothesis, the samples are divided into two parts by the location of their subsidiaries. Firms, who set up their subsidiaries only in Europe are in the first group and firms who set up subsidiaries outside Europe are in the second group.

(25)

In the second group, in which culture equals to 1, a positive relationship exists between the percentage of foreign sales and ROA(sig.=0.033). which means that a higher percentage of foreign sales in these companies can lead the firms to a higher performance. There is also positive relationship between foreign sales and total sales (sig.=.000). A positive relationship exists between foreign sales and assets (sig.=0.027).

A linear regression is run to compare the degree of the influence. The results in the table 6 show the comparison between the two groups. The results show that both in the two analyses, investing in the countries in the same culture cluster can bring a higher performance for the company. Therefore, hypothesis 3 is supported.

Table 6 Results of Regression

First Group(culture=0) Second Group (culture=1)

Foreign sales - Total sales R=0.805 R=0.723

Foreign sales - Assets R=0.658 R=0.379

6. Discussion and Conclusion

The aim of this research was to determine the relationship between internationalization and the family-owned firms’ financial performance. The research question which is investigated in this thesis is:

Is there any relationship between the performance of the German family-owned firms and internationalization?

(26)

relationship between internationalization and firms’ financial performance. Furthermore, the statistical analysis provided evidences that there is a stronger relationship between internationalization and the firms’ financial performance in firms in industry 2, the manufacturing companies.

The results show that the proportion of foreign sales has positive influence on total sales and total assets. According to the results, in order to increase the total sales and the total assets, managers in the family-owned firms can expand their internationalization by increasing the foreign sales.

My statistical results suggest that the internationalization has partly impact the firm performance in family-owned firms in Germany. Expanding the internationalization in terms of foreign sales may positively influence the total sales and the assets of the family-owned firms in Germany. However, there is no significant proof to verify that the internationalization has any positive impact on ROA.

In Industry 2, the manufacturing industry, there is a strong positive relationship between firm performance and internationalization. To the manufacturing firms, cost control is a key factor to increase the profit. In general, manufacturing firms have to control their cost, including material cost and labor cost. Internationalization can enable these firms purchase material from the whole world so as to reduce the material cost. And to reduce labor cost, these firms can set up subsidiaries in the other countries to hire cheap labor. To sum up, internationalization is more important in manufacturing firms.

To conclude, the results of this empirical study demonstrate a feasible way for the managers to make appropriate decision. Related to the literature review, these results show that when managers expand the proportion of the internationalization, the total sales and the total assets will be increased to some extent. Therefore, the realistic meaning of the research is to guide managers to adjust their strategy. However, there is no significant relationship between foreign sales and ROA, so a further research can be done with a large sample in this field.

(27)

each subsidiary and the total sales of each subsidiary. Therefore, an intensive research in this field is necessary.

In the hypothesis 3, internationalization can be subdivided by their scope and a further research can be done in this topic. For example, the result shows that it is easier for German firms to set up subsidiaries in Europe than in the other continent. However, no evidence shows the reason of this phenomenon. Therefore, the discovery of the reason can be done in further research. In addition, the internationalization of top management team can also link to the culture problem.

Due to the special construction in family-owned firms, that is, family members occupied an important position in the firm. The internationalization of the top management team in the firm is also a crucial indicator used to be investigated. Generally speaking, family member always hold the most important position in the management of the firm. When managers who don’t belong to the family come into the top management team, they have to deal with many barriers. On one hand, foreign managers have to break the barrier in communication. Foreign managers and local managers grew up in different culture background. And they will meet some difficulties when communicate with each other or they have different point of view when handling problem. On the other hand, in family-owned firms the cooperation between foreign managers and family members will be difficult. However, the internationalization of the top management team can also bring positive influence. First of all, foreign managers can bring new ideas and innovation to the firm due to their different background. In addition, foreign managers can help the firm to exploit international market. For example, if the manager comes from China, and he works for a German family owned firm. When the firm would like to exploit the Chinese market, a Chinese manager can be better understand the rules and regulation in China and can better communicate with Chinese local managers. To sum up, the internationalization of top management team is also a vital topic for further research.

(28)

internationalization. Therefore, the analysis can be more comprehensive. Furthermore, a comparison between international market and domestic market can be lead to measure the influence by internationalization. In addition, my sample data refers to a single year 2008. A further analysis can select samples across a series of years to test the trend of this relationship in different years. Moreover, this research only focuses on the family-owned firms. Further research can be done by comparing of owned firms and non family-owned firms.

(29)

References:

Aharoni, Y. (1966) The foreign Investment Decision Process. Graduate School of Business Administration. Harvard University: Boston, Mass

Allen, M.P., Panian, S.K., (1982). Power, performance and succession in the large corporation. Administrative Science Quarterly 27, 538-547

Ang, J.S., Cole, R.A., Lin, J.W., (2000). Agency costs and ownership structure. Journal of Finance 55: 81-106

Aronnoff C.E.and Ward J.L. (1991). Family business source book. Detroit: Omnigraphics Barth, E., Gulbrandsen, T.,Schone, P., 2005. Family ownership and productivity: the role of owner-management. Journal of Corporate Finance 11(1/2):107-127

Bennedsen M., Nielson, K.M., Perez-Gonzalez, F., Wolfenzon, D., (2007). Inside the family firm: The role of families in succession decisions and performance. Quarterly Journal of Economics. Vol: 122(2): 647-691

Buckley, P. J., John H. Dunning and Robert B.P. 1977. The influence of firm size, industry, nationality, and degree of multinationality in the growth and profitability of the world's largest firms. Weltwirtschaftliches Archiv, 114: 243-257

Chin-Chun Hsu,(2005). Internationalization and Performance: The S-curve hypothesis and product diversity effect. The multinational business review. Blo 14:29-44

Cooper, R.G. and Kleinschmidt, E.J. (1985) The impact of export strategy on sales performance. Journal of international business studies 16(1):37-56

Coviello, N. E., and McAuley, A. (1999).Internationalisation and the smaller firm: a review of contemporary empirical research. Management International Review, 39(3):223–256.

Ebrbardt O., Nowak. E. (2003) The effect of IPOs on German Family-owned firms: Governance changes ownership structure, and performance. Journal of small business management. 41(2):222-232

(30)

Fernandez,Z. and Nieto M.J.,. (2005) Internationalization Strategy of Small and Medium-Sized Family Businesses: Some Influential Factors, Family Business Review, 18: 77-89 Gallo, M.A. and Garcia Pont, C. (1988). The family business in the spanish economy. IESE, Research paper no. 144

Gallo, M.A. and Garcia Pont, C. (1996). Important Factors in Family Business Internationalization. Family Business Review. 9:45-59

Grant, R.M., Jammine, A.P. and Thomas, H. (1988) Diversity, Diversification and profitability among british manufacturing companies. Academy of management journal 31(4): 771-801

Grant, R. M. 1987. Multinationality and performance among British manufacturing companies. Journal of International Business Studies, 18(3):79-89

Graves,C and Thomas J.,(2006) Internationalization of Australian Family Businesses: A Managerial Capabilities Perspective. Family Business Review Vol:19:207-224

Groupement Europeen des Entreprises Familiales, GEEF Benchmark study, 2005

Holderness, C.G., Sheehan, D.P., 1988. The role of majority shareholders in publicly held corporations: and exploratory analysis. Journal of Financial Economics 20, 317-346 Hymer, S. H. (1976). The international operations of national firms: A study of foreign direct investment.Cambridge, MA: MIT Press.

Johanson, J. and Vahlne,J . (1977)The internationalization process of the firm: a model of knowledge development and increasing foreign market commitments. Journal of international business studies. 8(1):23-32

Jaskiewicz,P., Gonzalez, V.M., Menendez, S., Schiereck, D., (2005) Long-run IPO performance analysis of German and Spanish family-owned businesses. Family business review. 18(3):179-199

Javidan, M., Stahl, G.K., Brodbeck,F., Wilderom, C.P.M. (2005) Cross-border transfer of knowledge: Cultural lessons from Project GLOBE. Academy of management executive. 19(2):59-76

Johanson J andWiedershei-Paul,F.(1975) The internationalization of the firm- Four swedishcases'. Journal of management studies.

(31)

Klein, S. (2000). Familienunternehmen—Theoretische und empirische Grundlagen.Wiesbaden Germany.

Kumar, M. S. 1984.Growth acquisition and investment: An analysis of the growth of industrial firms and their overseas activies. Cambridge, UK: Cambridge University Press Lee,J. (2006) Family Firm Performance: Further Evidence. Family Business Review. 19:103-114

Lopez-de-Silanes, F., Shleifer, A.,(1999).Corporate ownership around the world. Journal of Finance, Vol. 2:471-517

Lu, Jane W. and Beamish, Paul W.(2001) The internationalization and performance of SMEs. Strategy management journal Vol. 22: 565-587

Majocchi,A. and Zucchella, A. (2003). Internationalization and Performance Findings from a set of Italian SMEs. International Small Business Journal. 21(2):249-268

Martinez J, Stohr B, Quiroga B. Family ownership and firm performance: evidence fom public companies in Chile. Family Business Review 2007; 20:83-94

Mcconaughy, D.L.,Walker, M.C., Henderson Jr., G.V., Mishra, C.S., 1998. Founding family controlled firms: efficiency and value. Roview of Financial Economics 7, 1-19. Mcdougall, P.P. and Oviatt, B.M., (1996)The venture internationalization, strategic change, and performance: a follow-up study. Journal of Business Venture. 11:23-40 Okoroafo,S.C.,(1999). Internationalization of Family Businesses: Evidence from Northwest Ohio, USA. Family Business Review. Vol:12: 147-158

Pangarkar, N. (2008)Internationalization and performance of small- and medium-sized enterprises. Journal of World business. 43:475-485

Perlmutter, Howard V. 1969. The tortuous evolution of the multinational corporation. Columbia Journal of World Business, 4: 9-18

Qian, G. (2002). Multinationality, product diversification, and profitability of emerging US small- and medium-sized enterprises. Journal of Business Venturing, 17(6): 611–633. Reynolds PD. 1997. New and small firms in expanding markets. Small Business Economics 9(1):79-84

(32)

Silva,F.,Majluf, N. (2007) Does family ownership shape performance outcomes? Journal of Business Research. 61: 609-614

Stopford, J.M.& Wells, L.T., 1972. Managing the multinational enterprise. New York: Basic Books

Sullivan, D. (1994)Measuring the deree of internationalization of a firm. Journal of international business studies. 2:325-342

Vernon, R. 1971. Sovereignty at bay: The multinational spread of U.S. enterprises. New York: Basic Books

Wagner, H. (2004)Internationalization speed and cost efficiency: evidence from Germany. International Business Review. 13:447-463

Welch, L.S. and Luostarinen, R. (1988) Internationalization:evolution of a concept. Journal of Gerneral management 14(2): 34-55

Zaheer, S. (1995). Overcoming the liability of foreignness. Academy of Management Journal, 38(2),

341–363.

Zaheer, S., & Mosakowski, E. (1997). The dynamics of the liability of foreignness: a global study of survival in financial services. Strategic Management Journal, 18(6):439– 464.

(33)

Appendices

Appendix 1

1. Agriculture, fishing, quarrying 2. Manufacturing

3. Electricity, gas and water supply 4. Construction

5. Ws. and retail trade; hotels, restaurants 6. Transport, post and telecommunications 7. Finance and business activities

8. Public and personal services 9. Activity not stated

Appendix 2

Hypothesis 1.

Correlation between foreign sales and return on assets

Correlations

foreign sales return of assets Pearson Correlation 1,000 -,016 Sig. (2-tailed) ,915 foreign sales N 45 45 Pearson Correlation -,016 1,000 Sig. (2-tailed) ,915 return of assets N 45 45

Correlation between foreign sales and total sales

Correlations

foreign sales total sales Pearson Correlation 1 .724**

Sig. (2-tailed) .000

(34)

Pearson Correlation .724** 1

Sig. (2-tailed) .000

total sales

N 45 45

**. Correlation is significant at the 0.01 level (2-tailed).

Correlation between foreign sales and assets

Correlations

foreign sales Assets Pearson Correlation 1 .391** Sig. (2-tailed) .008 foreign sales N 45 45 Pearson Correlation .391** 1 Sig. (2-tailed) .008 Assets N 45 45

**. Correlation is significant at the 0.01 level (2-tailed).

Correlation between foreign sales, ROA, percentage of foreign sales, total sales and assets of industry 2 Correlations foreign sales return of assets Percentage of foreign

sales total sales Assets Pearson Correlation 1,000 ,131 ,302 ,874** ,541* Sig. (2-tailed) ,630 ,255 ,000 ,030 foreign sales N 16 16 16 16 16 Pearson Correlation ,131 1,000 ,660** -,009 -,164 Sig. (2-tailed) ,630 ,005 ,972 ,545 return of assets N 16 16 16 16 16 Pearson Correlation ,302 ,660** 1,000 ,012 -,206 Percentage of foreign N 16 16 16 16 16 Pearson Correlation ,874** -,009 ,012 1,000 ,871** Sig. (2-tailed) ,000 ,972 ,964 ,000 total sales N 16 16 16 16 16 Pearson Correlation ,541* -,164 -,206 ,871** 1,000 Sig. (2-tailed) ,030 ,545 ,443 ,000 Assets N 16 16 16 16 16

**. Correlation is significant at the 0.01 level (2-tailed).

(35)

Correlation between foreign sales, ROA, percentage of foreign sales, total sales and assets of industry 3 Correlations foreign sales return of assets Percentage of foreign

sales total sales Assets Pearson Correlation 1,000 ,152 -,350 ,572 ,067 Sig. (2-tailed) ,696 ,356 ,107 ,864 foreign sales N 9 9 9 9 9 Pearson Correlation ,152 1,000 ,405 -,212 -,166 Sig. (2-tailed) ,696 ,280 ,584 ,670 return of assets N 9 9 9 9 9 Pearson Correlation -,350 ,405 1,000 -,772 * -,092 Sig. (2-tailed) ,356 ,280 ,015 ,814 Percentage of foreign sales N 9 9 9 9 9 Pearson Correlation ,572 -,212 -,772 * 1,000 ,586 Sig. (2-tailed) ,107 ,584 ,015 ,097 total sales N 9 9 9 9 9 Pearson Correlation ,067 -,166 -,092 ,586 1,000 Sig. (2-tailed) ,864 ,670 ,814 ,097 Assets N 9 9 9 9 9

(36)

Correlation between foreign sales, ROA, percentage of foreign sales, total sales and assets of industry 4 Correlations foreign sales return of assets Percentage of foreign

sales total sales Assets Pearson Correlation 1,000 -,088 ,849 1,000 * ,999* Sig. (2-tailed) ,944 ,355 ,015 ,031 foreign sales N 3 3 3 3 3 Pearson Correlation -,088 1,000 ,452 -,064 -,039 Sig. (2-tailed) ,944 ,702 ,959 ,975 return of assets N 3 3 3 3 3 Pearson Correlation ,849 ,452 1,000 ,861 ,874 Sig. (2-tailed) ,355 ,702 ,339 ,323 Percentage of foreign sales N 3 3 3 3 3 Pearson Correlation 1,000 * -,064 ,861 1,000 1,000* Sig. (2-tailed) ,015 ,959 ,339 ,016 total sales N 3 3 3 3 3 Pearson Correlation ,999 * -,039 ,874 1,000* 1,000 Sig. (2-tailed) ,031 ,975 ,323 ,016 Assets N 3 3 3 3 3

*. Correlation is significant at the 0.05 level (2-tailed).

(37)

Correlations foreign sales return of assets Percentage of foreign

sales total sales Assets Pearson Correlation 1,000 -,417 ,188 ,853 * ,855* Sig. (2-tailed) ,411 ,721 ,031 ,030 foreign sales N 6 6 6 6 6 Pearson Correlation -,417 1,000 -,005 -,190 -,221 Sig. (2-tailed) ,411 ,993 ,719 ,674 return of assets N 6 6 6 6 6 Pearson Correlation ,188 -,005 1,000 -,298 -,301 Sig. (2-tailed) ,721 ,993 ,566 ,562 Percentage of foreign sales N 6 6 6 6 6 Pearson Correlation ,853 * -,190 -,298 1,000 ,998** Sig. (2-tailed) ,031 ,719 ,566 ,000 total sales N 6 6 6 6 6 Pearson Correlation ,855 * -,221 -,301 ,998** 1,000 Sig. (2-tailed) ,030 ,674 ,562 ,000 Assets N 6 6 6 6 6

*. Correlation is significant at the 0.05 level (2-tailed). **. Correlation is significant at the 0.01 level (2-tailed).

(38)

foreign sales

return of assets

Percentage of foreign

sales total sales Assets Pearson Correlation 1,000 ,768 -,678 ,642 ,634 Sig. (2-tailed) ,075 ,139 ,169 ,176 foreign sales N 6 6 6 6 6 Pearson Correlation ,768 1,000 -,869 * ,954** ,951** Sig. (2-tailed) ,075 ,025 ,003 ,004 return of assets N 6 6 6 6 6 Pearson Correlation -,678 -,869 * 1,000 -,708 -,700 Sig. (2-tailed) ,139 ,025 ,116 ,121 Percentage of foreign sales N 6 6 6 6 6 Pearson Correlation ,642 ,954 ** -,708 1,000 1,000** Sig. (2-tailed) ,169 ,003 ,116 ,000 total sales N 6 6 6 6 6 Pearson Correlation ,634 ,951 ** -,700 1,000** 1,000 Sig. (2-tailed) ,176 ,004 ,121 ,000 Assets N 6 6 6 6 6

(39)

Regression between foreign sales and total sales

Model Summary

Model R R Square Adjusted R Square

Std. Error of the Estimate

1 ,724a ,524 ,513 4901,25175

a. Predictors: (Constant), foreign sales

Coefficientsa

Unstandardized Coefficients

Standardized Coefficients

Model B Std. Error Beta t Sig.

(Constant) 1925,354 749,114 2,570 ,014

1

foreign sales 1,614 ,235 ,724 6,876 ,000

a. Dependent Variable: total sales

Regression between foreign sales and assets

Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,391a ,153 ,133 8,37600E6

a. Predictors: (Constant), foreign sales

Coefficientsa

Unstandardized Coefficients

Standardized Coefficients

Model B Std. Error Beta t Sig.

(40)

Coefficientsa

Unstandardized Coefficients

Standardized Coefficients

Model B Std. Error Beta t Sig.

(Constant) 3219276,849 1280199,228 2,515 ,016 1

foreign sales 1117,312 401,089 ,391 2,786 ,008 a. Dependent Variable: Assets

Add business age as a control variable

Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,019a ,000 -,047 37,19972

a. Predictors: (Constant), FIRM_AGE, foreign sales

Coefficientsa

Unstandardized Coefficients

Standardized Coefficients

Model B Std. Error Beta t Sig.

(Constant) 14,052 7,357 1,910 ,063

foreign sales ,000 ,002 -,020 -,122 ,903

1

FIRM_AGE ,009 ,129 ,011 ,067 ,947

a. Dependent Variable: return of assets

Industry 2.1

Model Summary

(41)

1 ,660a ,435 ,395 4,52716 a. Predictors: (Constant), Percentage of foreign sales

Coefficientsa

Unstandardized Coefficients

Standardized Coefficients

Model B Std. Error Beta t Sig.

(Constant) 5,317 1,720 3,091 ,008

1

Percentage of foreign sales 14,921 4,542 ,660 3,285 ,005 a. Dependent Variable: return of assets

Industry 2.2 Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,874a ,763 ,746 4745,36345

a. Predictors: (Constant), foreign sales

Coefficientsa

Unstandardized Coefficients

Standardized Coefficients

Model B Std. Error Beta t Sig.

(Constant) 2782,096 1237,648 2,248 ,041

1

foreign sales 1,582 ,236 ,874 6,714 ,000

a. Dependent Variable: total sales

(42)

Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,541a ,293 ,243 8,44885E6

a. Predictors: (Constant), foreign sales

Coefficientsa

Unstandardized Coefficients

Standardized Coefficients

Model B Std. Error Beta t Sig.

(Constant) 5049540,552 2203563,791 2,292 ,038 1

foreign sales 1011,008 419,509 ,541 2,410 ,030 a. Dependent Variable: Assets

Hypothesis 2:

Correlation between return of assets and FDI, wholly owned subsidiaries

(43)

N 41 41 41 41 Pearson Correlation ,507** 1,000 ,813** -,227 Sig. (2-tailed) ,001 ,000 ,154 number of subsidiaries N 41 41 41 41 Pearson Correlation ,451** ,813** 1,000 ,209 Sig. (2-tailed) ,003 ,000 ,189 wholly owned subsidiaries N 41 41 41 41 Pearson Correlation -,066 -,227 ,209 1,000 Sig. (2-tailed) ,680 ,154 ,189 Percentage of wholly-owned subsidiaries N 41 41 41 41

**. Correlation is significant at the 0.01 level (2-tailed).

Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,507a ,257 ,238 33,25207

a. Predictors: (Constant), number of subsidiaries

Coefficientsa

Unstandardized Coefficients

Standardized Coefficients

Model B Std. Error Beta t Sig.

(Constant) -5,559 7,504 -,741 ,463

1

(44)

Hypothesis 3 Culture=0 Correlations foreign sales Percentage of foreign sales return of

(45)

Regression between foreign sales and total sales Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,805a ,648 ,609 1171,69302

a. Predictors: (Constant), foreign sales

Coefficientsa

Unstandardized Coefficients

Standardized Coefficients

Model B Std. Error Beta t Sig.

(Constant) 857,135 377,487 2,271 ,049

1

foreign sales 1,276 ,314 ,805 4,072 ,003

a. Dependent Variable: total sales

Regression between foreign sales and assets

Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,811a ,658 ,620 1,47229E6

a. Predictors: (Constant), foreign sales

Coefficientsa

Unstandardized Coefficients

Standardized Coefficients

Model B Std. Error Beta t Sig.

(Constant) 1275550,397 474331,144 2,689 ,025

1

(46)

Culture=1 Correlations foreign sales Percentage of foreign sales return of

(47)

Correlations foreign sales Percentage of foreign sales return of

assets total sales Assets Pearson Correlation 1,000 ,247 ,070 ,723 ** ,379* Sig. (2-tailed) ,159 ,692 ,000 ,027 foreign sales N 34 34 34 34 34 Pearson Correlation ,247 1,000 ,367 * -,119 -,262 Sig. (2-tailed) ,159 ,033 ,502 ,134 Percentage of foreign sales N 34 34 34 34 34 Pearson Correlation ,070 ,367 * 1,000 ,116 ,104 Sig. (2-tailed) ,692 ,033 ,514 ,557 return of assets N 34 34 34 34 34 Pearson Correlation ,723 ** -,119 ,116 1,000 ,905** Sig. (2-tailed) ,000 ,502 ,514 ,000 total sales N 34 34 34 34 34 Pearson Correlation ,379 * -,262 ,104 ,905** 1,000 Sig. (2-tailed) ,027 ,134 ,557 ,000 Assets N 34 34 34 34 34

*. Correlation is significant at the 0.05 level (2-tailed).

Regression between foreign sales and total sales

Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,723a ,523 ,509 5583,59073

(48)

Coefficientsa

Unstandardized Coefficients

Standardized Coefficients

Model B Std. Error Beta t Sig.

(Constant) 2317,703 981,727 2,361 ,024

1

foreign sales 1,613 ,272 ,723 5,929 ,000

a. Dependent Variable: total sales

Regression between foreign sales and assets

Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 ,379a ,143 ,117 9,60107E6

a. Predictors: (Constant), foreign sales

Coefficientsa

Unstandardized Coefficients

Standardized Coefficients

Model B Std. Error Beta t Sig.

(Constant) 3803579,639 1688095,188 2,253 ,031 1

Referenties

GERELATEERDE DOCUMENTEN

The aim of this thesis is to identify which topography is linked to the alignment, proliferation, and differentiation of human myoblasts in conjunction with endothelial

Finally, the use of PET tracers has advantages over [I-123]MIBG in cardiac sympathetic innervation imag- ing. Carbon-11 labelled meta-hydroxy-ephedrine [C- 11]mHED has been

Breederveld schrijft het volgende: “Indien de verzwijging, het zoek maken of verborgen houden, wordt ontdekt nadat de verdeling van de ontbonden gemeenschap heeft

Beside this, investors should take into account that family firms with family present in the management board and with no wedge between cashflow rights and

This research expects that alternation in organizational culture and firm performance is visible within family firms after a succession because the successor probably has

This will be mainly based on high informal sharing of knowledge, which will make the overall organizational structure more flexible (Zahra, 2012). Hence, stewardship behaviors of

In addition, MercuryDPM has three major state-of-art components that where originally invented and developed by its team: an advanced contact detection method, which

Hoewel dit voor die hand le dat daar in die loop van tyd groot toenadering moes plaasgevind het van die Nederlands van die Hottentotte aan die van die blanke, is