XLIII Encontro da ANPAD - EnANPAD 2019 São Paulo/SP - 02 a 05 de outubro International entrepreneurship of family businesses with home-country formal institutions support through geographical indication Autoria Jefferson Marlon Monticelli - [email protected] Pós-Doutorado em Administração de Empresas/FGV/EAESP - Fundação Getulio Vargas/Esc de Admin de Empresas de São Paulo Programa de Pós-Graduação/Universidade Unilasalle Fábio Dal-Soto - [email protected] Curso de Administração/Universidade de Cruz Alta - Unicruz outro/outro Resumo This study examines the influence of home-country institutions on international entrepreneurship of family businesses. We considered the country-of-origin can be viewed as a resource and the geographical indication as an institution because is shaped by formal and informal rules and may generate recognizing and legitimacy of internationalized products as the wine. We developed a case study in the Brazilian wine industry, and, through a framework and propositions, we focus on the international entrepreneurship of family business regarding the relevance of the branding and the geographical indication, mainly to the international markets. In this sense, this study contributes because we analyze the international entrepreneurship with the support of home-country formal institutions, creating an opportunity to understand the context of an emerging economy because the use of institutional theory in entrepreneurship research can advance the knowledge about cross-border entrepreneurship behavior. Moreover, the family business brand with the name is a relevant factor to the continuity of the family business because it is not only an income source but also an extension of the family and their reputation in the community, as well to give support to the youngsters and other family members. XLIII Encontro da ANPAD - EnANPAD 2019 São Paulo/SP - 02 a 05 de outubro International entrepreneurship of family businesses with home-country formal institutions support through geographical indication Abstract: This study examines the influence of home-country institutions on international entrepreneurship of family businesses. We considered the country-of-origin can be viewed as a resource and the geographical indication as an institution because is shaped by formal and informal rules and may generate recognizing and legitimacy of internationalized products as the wine. We developed a case study in the Brazilian wine industry, and, through a framework and propositions, we focus on the international entrepreneurship of family business regarding the relevance of the branding and the geographical indication, mainly to the international markets. In this sense, this study contributes because we analyze the international entrepreneurship with the support of home-country formal institutions, creating an opportunity to understand the context of an emerging economy because the use of institutional theory in entrepreneurship research can advance the knowledge about cross-border entrepreneurship behavior. Moreover, the family business brand with the name is a relevant factor to the continuity of the family business because it is not only an income source but also an extension of the family and their reputation in the community, as well to give support to the youngsters and other family members. Keywords: international entrepreneurship; family businesses; formal institutions; geographical indication; branding. Introduction International Entrepreneurship (IE) scholars have researched about entrepreneurship and international business (Hisrich et al., 1996). This field of study has increased since the end of the last century. A recent approach combines these studies about IE with family businesses (FB). These and small and medium enterprises (SMEs) respond for about 70 to 90% of global GDP (McKinsey & Company, 2014). The emergence of a FB is usually linked to the entrepreneurial behavior of its founder (Williams Jr. et al., 2018). The level and entrepreneurship style of the FB are also related to the social, geographical, and economic context of the business (Ramadani et al., 2017). The FB consolidation, maturity, and succession across generations are particular stages in this type of organization (Nordqvist et al., 2013) and have grown when approaches with entrepreneurship (Van Steel et al., 2005). Similarly, the internationalization of family businesses (IFB) has been a major research topic in the last few years (Arregle et al., 2012). Despite its relevance, the research still has premature results (Ratten et al., 2017), because FB must develop different business models to leverage resources in domestic and foreign markets (Westerlund et al., 2017). Thus, the lack of the contextualization of theories between FB and international business has been a barrier to understanding IFB (Arregle et al., 2017). Consequently, it is relevant to understand what factors influence the IFB as the presence of family members, governance structure, geographic scope, access to resources and formal institutions (FIs). Considering the institutional environment where FB are inserted, in many cases, they depend more on home-country advantages than specific advantages (Amighini et al., 2010). Home-country institutions can provide political advantages to the IFB to deal with or to mitigate political risks in host countries. Moreover, FBs are disproportionately affected by market failures, barriers, and inefficiencies in the business environment and policy sphere, mainly in emerging economies. FB contributions also depend on their access to strategic resources, such as skills, knowledge, networks, finance, and brand management. Branding, for example, is an important resource that can develop an alignment between the capabilities of a firm and the external environment (Tatoglu et al., 2018). Therefore, to obtain a sustainable competitive advantage, the firm must possess and mobilize valuable, rare, imperfectly 1 XLIII Encontro da ANPAD - EnANPAD 2019 São Paulo/SP - 02 a 05 de outubro imitable resources that can be used by the organization (Barney, 1991). At the same time, governments use promotion policies to support the internationalization of firms such as low cost of capital, bilateral treaties, and trade shows (Gammeltoft et al., 2012). Home-country institutions matter (Chacar et al., 2010) and, together with competition, they influence profits of the firm (Cherchye & Verriest, 2016) because a superior performance requires an alignment between multiple institutional settings due to the institutional distance between home and host countries (Kostova et al., 2008). Thus, it is necessary to investigate how FBs deal with challenges and opportunities from market institutions and institutional pressures (Luo, 2019). Thus, this paper focuses on the IE of FB with home-country FIs support. Thus, the research question is: how home-country FIs influence the IE of FB? To answer this question, we consider a FB is a business “governed and/or managed with the intention to shape and/or pursue the vision of the business held by a dominant coalition controlled by members of the same family or small number of families in a manner that is potentially sustainable across generations of the family or families” (Chua et al., 1999, p. 25). At the same time, we understand IE as “the recognition, formation, evaluation, and exploitation of opportunities across national borders to create new businesses, models, and solutions for value creation, including financial, social, and environmental” (Zahra et al., 2014, p. 138). Moreover, institutions can be formal constraints, which are explicit (rules, laws, constitutions), and informal constraints (norms of behavior, conventions and self-imposed codes of conduct) (North, 1990). However, we focus on FIs that can offer opportunities, access to resources, greater economic returns (Bruton et al., 2010) and legitimacy (Smith et al., 2016) because these have been the subject of most attention in the literature as the laws and regulations established from government (Cuervo-Cazurra et al., 2019; Mingo et al., 2018). In this case, the geographical indication (GI) is considered as a FI because country-of-origin may generate recognizing and legitimacy of internationalized products as the wine. This study goes beyond past research by examining the influence of home-country institutions on IE of FB. The main contributions of this study are twofold. First, we advance to understand the entrepreneurship of FB regarding the context of international activities of the family (Bettinelli et al., 2017). Thus, home-country institutions have been neglected in the research about international business (Mingo et al., 2018), with some exceptions (Cuervo- Cazurra et al., 2018). Thus, IE, with the support of home-country FIs, is an opportunity to understand this context of an emerging economy because the use of institutional theory in entrepreneurship research can advance the knowledge about cross-border entrepreneurship behavior (Szyliowicz & Galvin, 2010). Second, most FB research is related to the entrepreneurial activities of a founder (e.g. Michael-Tsabari et al., 2014; Williams Jr. et al., 2018). They have focused on entrepreneurial orientation (EO) or transgenerational succession (e.g., Jaskiewicz et al., 2015; Ramadani et al., 2015). However, the FB brand with the name is a relevant factor to the continuity of the FB because it is not only an income source but also an extension of the family and their reputation in the community, as well to