Comparative Study on the Impact of Ownership Concentration on Internationalization and Performance: Family versus Non-family Firms in Korea

Purpose – This study uses the behavioral agency theory (BAT) to investigate the effect of internationalization on firm performance and to examine the moderating role of ownership concentration in internationalization and firm performance relationship in technology-intensive industry in Korea. Design/Methodology – The study examines the patterns of family and non-family firms under high risk, high uncertainty conditions and thus provides novel insights regarding how ownership structures affect risk taking and internationalization strategies. Findings – This study finds that family and non-family firms both have non-linear relationships among ownership concentration, internationalization, and performance. In family firms, high concentration of ownership results in higher risk aversion and cautious internationalization, which means stable but modest performance improvements. In non-family firms, moderate increases in concentration improve coordination and control, yet overly high concentration decreases strategic flexibility, causing more precipitous decreases in international market performance. Originality/value – This research extends BAT to dynamic, innovation driven contexts and shows that ownership concentration has nonlinear effects on internationalization and performance. The study also enriches literature on strategic decision making in high stakes global fields in non- West settings, by incorporating the interplay between governance structures, risk behavior, and international expansion.