Inducing the internationalisation of family manufacturing firms from a transition context

Abstract

Purpose This paper aims to investigate the internationalisation inducement in family firms with domestic capital operating in a specific industry in a transition country. Examining the effect of entrepreneur-, firm- and context- specific factors, it provides an insight into the start of internationalisation via exporting and its initiating features. Design/methodology/approach The study uses a qualitative research approach. Data were collected through semi-structured interviews from informants with conclusive decision-making power and analysed using a combination of inductive and deductive coding. Findings The findings show that the sample firms internationalise early exhibiting mostly proactive behaviour in finding international clients. Owner-manager international orientation and commitment combined with contacts in his or her social spaces lead to early export inducement despite the fusion of ownership and control, and regardless of transition context volatility and inefficiency. Research limitations/implications The limitations include the sample size and its industry embeddedness limiting generalisability. The key implications are that family firms need support to develop their social spaces through encouraging and enabling linkages between socio-economic actors that can expand the bounded sociality of the firm. Originality/value The owner-manager orientation, objectives, commitment and characteristics, coupled with the straightforward decision-making process that is safeguarded by full family ownership, can abate the dissuading role of the perceived lack of institutional support for small and medium-sized enterprise internationalisation in a transition context.