Family businesses often debate the right moment to expand abroad. Should they move fast or wait until everything’s just right? This research reveals that when founders have previously worked internationally together, their businesses tend to enter foreign markets more quickly—and often more successfully. But there’s a twist: speed isn’t always a shortcut to success. This article unpacks the key findings and shows family firms how to make smarter choices when it comes to timing, team dynamics, and global ambition.
In today’s fast-moving global economy, the decision to internationalize can make or break a young company. For family-owned startups and ventures, this move is particularly complex. They’re balancing long-term values with short-term pressures, and family relationships with business dynamics. But what if one key to a successful expansion lay not in the business plan, but in the past experiences of the founding team?
A recent study by Lundan, Chirico, Kraus, and Maksimov brings fresh insight into this question by exploring how shared international work experience among co-founders affects the speed of entering foreign markets—and how that, in turn, influences early performance. As more family ventures emerge in global markets, understanding this link can offer a vital edge.
This research centers on an increasingly relevant but underexplored topic: how shared experiences abroad—specifically, when co-founders have worked together internationally—shape strategic decisions in startups.
The authors studied 431 new ventures from the Global Entrepreneurship Monitor (GEM) dataset. Unlike prior research that typically looks at individual traits (such as whether one founder has international experience), this study zooms in on whether the founders have shared that experience—working together in an international setting before launching the business.
To analyze this relationship, the authors employed structural equation modeling to trace both direct and indirect effects between variables:
The analysis tests the idea that prior collaboration abroad fosters strategic alignment and trust, thereby enabling faster international moves and, ideally, better performance.
The study builds on Upper Echelons Theory, which holds that leaders' backgrounds, experiences, and values shape organizational outcomes. The twist here is the emphasis on shared rather than individual experience—highlighting how previous collaboration in complex international environments can improve communication, trust, and joint decision-making in a startup context.
This approach provides a powerful new lens for analyzing founding teams—especially relevant for family businesses where relationships are often deep-rooted and multifaceted.
When founders have previously worked abroad together, their businesses tend to enter foreign markets sooner. This isn’t just about knowledge—it’s about relational capital. Working abroad as a team develops mutual understanding, aligned goals, and familiarity with uncertainty—all crucial for confident, timely internationalization.
For family businesses, where intergenerational or sibling teams are common, these insights suggest that intentional, shared international exposure can offer strategic advantages down the line
Timing is everything. The study found that earlier foreign market entry is associated with stronger early performance, but this effect is curvilinear—meaning it doesn’t hold indefinitely. Go global too soon, and the venture might lack the resources, networks, or operational strength to compete. Go too late, and the firm risks losing its window of opportunity.
For family firms, this means calibrating ambition with readiness. Even if the team feels confident due to prior experience, market timing and internal capacity must still guide the decision.
A surprising finding: shared international experience doesn’t directly improve performance. Instead, it does so indirectly, by helping the firm move into foreign markets faster. In essence, it sets off a chain reaction:
Shared experience → earlier internationalization → stronger performance.
This reinforces the idea that experience is a facilitator, not a performance driver on its own. It enables better timing and strategic alignment, which then drive results.
Trust between founders is a common trait in family firms. But this study suggests that strategic trust—built through shared problem-solving and decision-making in high-pressure international settings—is more valuable than emotional familiarity. Co-founders who’ve navigated foreign business landscapes together are more likely to align on vision, manage ambiguity, and act decisively.
Family business leaders should not assume that family bonds are a substitute for strategic readiness. Shared global experiences build a different kind of trust—one rooted in action, not just blood ties.
If your family business aims to grow globally, consider creating international experience opportunities for key members of the next generation—preferably in pairs or teams. These experiences can pay dividends later in terms of speed, cohesion, and confidence in expansion decisions.
Even if your founding team shares an impressive international background, evaluate operational readiness carefully. The temptation to go global early must be balanced with financial health, product maturity, and organizational stability.
For family firms involving siblings, cousins, or family friends as co-founders, focus not just on personal chemistry but on shared strategic experience. Working abroad together fosters mutual understanding of risk, culture, and adaptation—critical when navigating complex markets.
Even before a formal expansion, family firms can simulate shared experience by launching joint overseas projects or partnerships. These initiatives offer “training ground” benefits without full commitment.
This research has broad implications not just for early-stage ventures, but for succession planning and leadership development in family businesses. As globalization continues to reshape industry norms, the ability to internationalize successfully is no longer optional.
Family firms often rely on long-standing relationships and trust-based decision-making. While these are strengths, the study reminds us that shared strategic experience in international settings is a distinct and powerful asset. Whether through internships, assignments, or collaborations, cultivating this experience can significantly shape future expansion outcomes.
It also underscores the importance of founding team composition—a critical but often under-discussed aspect of family business success. In an era where collaboration and speed are key to global success, this research offers a roadmap for how to build and prepare the right team.
Criaco, G., Naldi, L., & Zahra, S. A. (2022). Founders’ prior shared international experience, time to first foreign market entry, and new venture performance. Journal of Management, 48(8), 2349–2381.
https://journals.sagepub.com/doi/10.1177/01492063211029701Note: This text has been generated with the support of AI and verified by the authors. For any question, please refer to the authors.
