The Internationalization of Family Businesses in the Food industry. The experience of Fratelli Saclà in foreign markets

Abstract

According to Istat, more than 70% of Italian Firms are Family Businesses. Not only family-owned firms are very common, but, in a great number of these firms, family members are also personally responsible for the management of the business. However, despite the fact that there is not homogeneity in the definition of Family Business yet, what is clear is that its distinctive nature deeply affects its management and performance. In this increasingly competitive global economy, Family Businesses, like non-family firms, face more and more the importance of Internationalization as a central means to expand the business and increase its value and competitiveness. The aim of this thesis is to investigate the interference of the Family Business nature with the management of its Internationalization, with a specific focus on the Internationalization for firms in the Food industry. While in the first chapter the emphasis is placed on highlighting the main factors which distinguish Family Businesses and define their Internationalization, the second one will move to analyse the Food sector challenges from the Internationalization perspective. In fact, the Food industry presents significant institutional, administrative and cultural differences among countries, therefore the marketing of a product of this industry in new markets requires considerable and detailed knowledge. A cross-cultural approach is used to highlight the marketing aspects that deserve scrupulous attention for Internationalization of firms the Food industry. The third part of this thesis introduces the Italian Family firm Fratelli Saclà, which the Ercoles have been running since 1939. In the beginning of the 1990s they started the Internationalization of the business and today, while the third generation of the family is in charge, Saclà’s products are available in more than 50 countries. The experience and challenges faced by this well-known Italian Family Business during Internationalization are presented to support the body of the thesis in the analysis of Family Business Internationalization in the Food Sector.