Abstract
Our empirical study among 112 German firms investigates how psychic distance, cultural distance and relative perceived performance impact the speed of internationalisation among family firms vs. non-family firms. Using partial least squares structural equation modelling, we uncovered two significant findings: family enterprises internationalise significantly slower than non-family enterprises and psychic distance is a distinct internationalisation barrier for family enterprises. Further, active motivation for success remains a driving force, while a phlegmatic pace can be observed once a saturation effect has occurred. Accordingly, firms with a medium level of relative perceived performance approach international markets proactively. Focusing on perceptions of the decision maker in family vs. non-family firms, we offer a nuanced perspective on internationalisation speed. The observed effects indicate that actors' subjective reality impacts the proactivity of international market entry. © 2014 Inderscience Enterprises Ltd.