A3 Book section, chapters in research books

Coexistence of economic and noneconomic goals in building foreign partner relationships: Evidence from small Finnish family firms


Open Access publication


Publication Details

Authors: Metsola Jaakko

Editors of book: Leppäaho, Tanja; Jack, Sarah

Edition name or number: 1

Publishing place: Cham, Switzerland

Publication year: 2021

Language: English

Title of parent publication: The Palgrave Handbook of Family Firm Internationalization

ISBN: 978-3-030-66736-8

eISBN: 978-3-030-66737-5

JUFO level of this publication: 3

Digital Object Identifier (DOI): http://dx.doi.org/10.1007/978-3-030-66737-5_10

Permanent website address: https://link.springer.com/chapter/10.1007/978-3-030-66737-5_10

Open Access: Open Access publication

Location of the parallel saved publication: http://urn.fi/URN:NBN:fi-fe2021060132617


Abstract


Attempts to explain the distinctive nature of family firms
(FFs), including how noneconomic goals may dominate FFs’ strategic
decision-making, are reflecting attention to the socioemotional wealth (SEW)
perspective. Although FF research has discussed internationalisation as a
strategic decision, we lack evidence on how FFs balance the economic and
noneconomic (i.e. SEW) goals in their internationalisation. Specifically, since
SEW manifests itself in relationships, and internationalisation requires relationship-building
with partners—especially for small firms with limited resources—this study aims
to explore whether SEW preservation restrains small FFs from
building foreign partner relationships (FPRs) for internationalisation
. To
provide answers to the question, the author undertook a multiple-case study of
eight small Finnish FFs. The findings suggest that firms with higher levels of
SEW were more active in building close FPRs. Thus, SEW preservation can extend
to the international context, with foreign partners included in the ‘scope of
SEW preservation’, as part of an extended international family. However, utilising
attributes of different SEW dimensions requires concurrent awareness and
implementation of economic goals. As a result, economic and noneconomic (SEW)
goals co-exist and interact in the internationalisation of small FFs. The paper
concludes by presenting implications and propositions for future research.


Last updated on 2021-16-06 at 07:31