IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-030-66737-5_3.html
   My bibliography  Save this book chapter

Socioemotional Wealth and Networking in the Internationalisation of Family SMEs

In: The Palgrave Handbook of Family Firm Internationalization

Author

Listed:
  • Jaakko Metsola

    (LUT University)

  • Lasse Torkkeli

    (LUT University)

  • Tanja Leppäaho

    (LUT University)

  • Pia Arenius

    (RMIT University)

  • Mika Haapanen

    (University of Jyväskylä)

Abstract

In internationalisation processes, international expansion exposes family SMEs to external networking and the risks such expansion entails, and perceived threats to their socioemotional wealth (SEW) might restrain their willingness to take these actions. However, very few studies measure SEW and associate it with internationalisation. Considering SEW preservation’s prominence in family SMEs and SMEs’ heavy dependence on networking during internationalisation, we hypothesise that SEW preservation has a negative association and networking has a positive association with the family SMEs’ degree of internationalisation (DOI). We reconstruct four SEW constructs that carry significance for family SMEs—family-heritage maintenance, family-controlled decision-making, familial relationship-building and emotional decision-making—used in the SEW-related hypotheses and as moderators of networking’s effects. A multiple regression analysis of 89 Finnish SMEs (47 of which were family SMEs) suggests that emotional decision-making has a strong negative relationship and networking has a strong positive relationship with DOI. The results extend and clarify the restraining role of SEW through affective preferences and needs in family-SME internationalisation, while also emphasising the economising role of networking in offsetting dysfunctional SEW and related bifurcation bias in the long run.

Suggested Citation

  • Jaakko Metsola & Lasse Torkkeli & Tanja Leppäaho & Pia Arenius & Mika Haapanen, 2021. "Socioemotional Wealth and Networking in the Internationalisation of Family SMEs," Springer Books, in: Tanja Leppäaho & Sarah Jack (ed.), The Palgrave Handbook of Family Firm Internationalization, edition 1, chapter 3, pages 63-101, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-66737-5_3
    DOI: 10.1007/978-3-030-66737-5_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-030-66737-5_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.