Family involvement and Spanish hotel chains’ entry modes abroad

Abstract

The aim of this study is to analyze the relationship between family involvement and entry mode choice by Spanish hotel chains in foreign markets. Drawing on stewardship and institutional theories, we examine how family character may moderate the effect of institutional differences on the choice of entry modes entailing different levels of resource commitment and control over international activities. Using a sample of 981 hotels established abroad by 76 Spanish hotel chains, the results show that family involvement is associated with entry modes involving greater control and resource commitment. Moreover, family involvement moderates the relationship between both formal and informal institutional distance and entry mode choice. Specifically, when both distances are high, family involvement increases the likelihood of choosing entry modes involving higher control and resource commitment.