Abstract
We integrate the mixed gamble perspective with the dynamic-based institutional view to study how different reference points influence family vs. nonfamily firms’ scale of internationalization over time in a dynamic institutional environment. Accordingly, we propose that performance aspirations and market risk change how family vs. nonfamily firms view the mixed gamble of internationalization, thereby leading to different scale of internationalization over time. We also consider in our framework the role of speed of reforms as a boundary condition in shaping family vs. nonfamily firms’ internationalization responses to different reference points. We validate our theoretical framework across different institutional environments using a sample of family and nonfamily publicly traded firms from Europe.