International market withdrawal is an important yet under-theorised component of firms' international strategies. Existing international business research largely views withdrawal as a rational response to financial underperformance, overlooking the non-financial objectives that shape decisions of family-owned multinational enterprises (FMNEs). Integrating the socioemotional wealth (SEW) perspective with the mixed-gamble logic, this study examines how distinct SEW dimensions influence FMNEs' international market withdrawal under heightened uncertainty. Using data from Chinese FMNEs during the COVID-19 period from 2019 to 2023, we find that family control increases the likelihood of withdrawal, particularly under financial underperformance, whereas family identification, binding social ties, emotional attachment, and dynastic succession reduce withdrawal propensity. Further analyses show that financial underperformance amplifies asset-protection motives while weakening persistence-enhancing SEW effects. By disaggregating SEW and embedding it within a mixed-gamble framework, this study advances international business exit theory by clarifying how family firm heterogeneity shapes withdrawal behaviour under heightened uncertainty.
Sun et al. (Sun,) studied this question.