Employee downsizing and sales internationalization strategy in family firms

Abstract

Employee downsizing is a crucial choice that transcends the firm's boundaries and has profound social implications. While the topic has been on researchers’ agenda for a long time, literature is still looking for a finer understanding of downsizing in family firms, which are the majority of employers worldwide. Using the Socio-Emotional Wealth perspective, this study explores the contingency effect of sales internationalization strategy on the relationship between family firm status and employee downsizing. Based on a large sample of private Spanish firms, our results reveal that the negative effect of family firm status on downsizing is mitigated at higher levels of export intensity, global focus and when export is done directly.