Social networks and family firm internationalisation: cases from a transition economy

Abstract

Purpose The purpose of this study is to examine the impact of family firms’ types of social networks on internationalisation. By investigating the mechanisms and the process and complexity regarding the operation, function and impact of social networks, this paper aims to gain insights and understand the dynamism concerning the content, and process as well as build rich and detailed construct analysis. Design/methodology/approach This study used a qualitative case study as a research strategy to examine the impact of social networks on family firm internationalisation. A qualitative research strategy was used as the impact of networking relations and structure is challenging to be measured statistically. Findings The findings suggest that family firm internationalisation was gradual and characterised by an incremental learning process. This process facilitated the networking relations and structures that helped firms improve their quality, product diversification and set competitive prices. Research limitations/implications This study’s first limitation is that it focused mainly on low technology manufacturing firms. This paper recommends examining how high technology firms maximise social networks. Secondly, this paper examined family firms; therefore, this paper recommends comparing and contrasting networking relations and family and nonfamily firms' social structure. Thirdly, being limited only to social networks, this study did not focus on the impact of ownership; this paper suggests future studies to examine family ownership and involvement in firm internationalisation. Originality/value Understanding how firms’ social network types influence family firms’ internationalisation in a transition economy is critical to ensuring family businesses’ expansion. This study explains how family firms use social networks to internationalise, extending the current understanding of family business literature in transition economies. It also provides implications for policymakers and family firms managers for improving the growth prospects of family businesses.