Diversification of export territories of family businesses as a tool of their further development

  • Received April 6, 2019;
    Accepted May 28, 2019;
    Published September 2, 2019
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/ppm.17(3).2019.25
  • Article Info
    Volume 17 2019, Issue #3, pp. 306-322
  • TO CITE АНОТАЦІЯ
  • Cited by
    5 articles
  • Funding data
    Funder name: University of Finance and Administration
    Funder identifier: -
    Award numbers: No. 7427/2019/01 “Financial versus sociopsychological factors of family business”
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Family business is the largest global source of jobs in the private sector, whose multigenerational nature strengthens the stability of individual economies. A competitive small and medium-sized enterprise (SME) sector into which family businesses are classified is an essential prerequisite for the full-fledged integration of any economy into the global economic space. For the Czech economy, the importance of foreign trade is increasing, and is dependent on the capabilities of companies to expand to foreign markets. The goal of this article is to identify involvement of the generation of successors to export activities of family business, focusing on diversifying export territories in relation to structure of the industry A secondary goal is to discuss the demand mechanisms for SMEs/family business oriented toward export. The scientific hypotheses defined are focused on demonstrating a dependency between the diversification of export territories, the involvement of the generation of successors in the management of the company and structure of industry. Authors have demonstrated that family businesses managed by the first generation of founders export primarily to the territories of Slovakia, Germany, and the EU. Companies where the next generation contributes to management diversify territorial risk and also export outside the EU countries. A significant correlation was demonstrated between automotive industry and Germany, Slovakia and country outside the EU and mechanical engineering and country outside the EU. The uniqueness of this article lies in the topicality of the real transition of Czech family businesses to the next generation, which carries out foreign trade to promote the further development and sustainability of the family business for future generations.

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    • Table 1. Export/non-export activities of family companies – research sample
    • Table 2. Correlation analysis of variables: diversification of export and generations
    • Table 3. Correlation analysis of variables: diversification of export territories
    • Table 4. Correlation analysis of variables: generational involvement in the management of exporting companies
    • Table 5. Diversification of export territories and generational involvement in the management
    • Table 6. Correlation analysis of variables: diversification of export territories and structure of industry
    • Table 7. Diversification of export territories and structure of industry