International Trade and Financial Resilience of Family Businesses in Algeria: Effects of Non-Hydrocarbon Diversification

Abstract

This study investigates the relationship between Algerian family businesses' engagement in international trade and the strengthening of their financial resilience within the context of a rentier economy transitioning toward non-hydrocarbon diversification. The theoretical framework integrates three complementary perspectives articulated within a multi-level model: organizational resilience theory (Holling, 1973; Meyer, 1982), resource dependence theory (Pfeffer & Salancik, 1978), and the socioemotional wealth concept (Gómez-Mejía et al., 2007). A sequential explanatory mixed-methods design (Creswell & Plano Clark, 2018) combines quantitative multiple regression with sectoral fixed effects, two-stage least squares (2SLS) estimation with three instruments, and Difference-in-Differences analysis on a sample of 87 exporting and 65 propensity score-matched non-exporting Algerian family firms, covering 2018–2024 (604 firm-year observations; regression models estimated on 512 observations), alongside a qualitative study based on 28 semi-structured interviews. Results reveal a positive and significant relationship between internationalization degree and financial resilience (β = 0.342; p < 0.01; adjusted R² = 0.32), confirmed by 2SLS estimation (β = 0.378; p < 0.01). Non-hydrocarbon sectoral diversification exerts an amplifying moderating effect (β_interaction = 0.187; p < 0.05). Qualitative analysis highlights the role of family survivability capital, transgenerational orientation, and an emergent phenomenon termed "relational resilience." This research fills a major empirical gap in the literature on family businesses in rentier economies and formulates operational recommendations for public authorities and managing families.