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Internationalization Process of Developing-Country Family SMEs: The Case of Solanos Hermanos S.A. of Guatemala

In: The Palgrave Handbook of Family Firm Internationalization

Author

Listed:
  • Jose Godinez

    (University of Massachusetts Lowell)

  • José Solís Sierra

    (Universidad del Valle de Guatemala)

Abstract

We examine how family small and medium-sized enterprises from developing countries begin an exporting strategy. These firms are characterized by their size, the control family members have over it, the resource constraints inherent to their size, and the challenging environment of their home country. Our analysis relies on an in-depth interview with a fourth-generation family member who serves as the CFO of Solanos Hermanos S.A., a coffee exporting firm. We conclude that to start export operations, these firms do not necessarily need to utilize their limited financial resources. Instead, they can test foreign markets if they can establish a working relation based on trust with an intermediary to help them market and distribute their products abroad. Once the company decides to export on their own, they can leverage their family structure to exploit their experiential resources. These resources are forged in the family members’ formal education as well as the experience acquired by working in other organizations. While this study relies on a single case, it presents novel insights of how these firms can begin a successful exporting strategy.

Suggested Citation

  • Jose Godinez & José Solís Sierra, 2021. "Internationalization Process of Developing-Country Family SMEs: The Case of Solanos Hermanos S.A. of Guatemala," Springer Books, in: Tanja Leppäaho & Sarah Jack (ed.), The Palgrave Handbook of Family Firm Internationalization, edition 1, chapter 17, pages 553-570, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-66737-5_17
    DOI: 10.1007/978-3-030-66737-5_17
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