The internationalization of family SMEs:  A network perspective : A qualitative study of Swedish family SMEs

Abstract:   Abstract Background: Family businesses have traditionally operated within their domestic borders and with a more global competitive market, family firms are more compelled to extend their operations abroad (Casillas & Acedo, 2005; Kontinen & Ojala, 2010). Times are changing and old internationalization theories is becoming outdated and new theories are evolving, the revised Uppsala model from 2009 is one of them. With the help of the revised Uppsala model we will try to see how family firms internationalize from a business network perspective. Purpose: The purpose of this work is to augment the research field of small and medium family business’s internationalization process with regards to the specific features of family firms. More specifically, we intend to develop an understanding of how specific features of family firms influence their international activities with regard to the network perspective of the Uppsala model.    Method: This is a qualitative study with an abductive approach which is founded on a multiple case study with two family firms. We look at how networks and relationships influence family firm’s internationalization process by conducting interviews with the top management of two family SMEs. We have conducted the interviews mainly with the two CEOs of the respective firm. Conclusion: The internationalization process of family SMEs has developed when relationships and networks have been established. The ownership structure of family firms convey particular aspects that has to be considered when investigating the internationalization process of family SMEs. Risk-avoidance and long-term orientation are central features for Family SMEs international activity.