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Good for wealth or bad for health? Socioemotional wealth in the internationalisation process of family SMEs from a network perspective

Metsola, Jaakko (2020-12-04)

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Metsola, Jaakko
04.12.2020
Lappeenranta-Lahti University of Technology LUT

Acta Universitatis Lappeenrantaensis

School of Business and Management

School of Business and Management, Kauppatieteet

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https://urn.fi/URN:ISBN:978-952-335-597-2

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This dissertation investigates how family SMEs (small- and medium-sized enterprises) internationalise from a network perspective, to reach both noneconomic socioemotional wealth (SEW) and economic goals. SEW encompasses the key noneconomic, affective, relational and behavioural preferences (e.g. family control) that family firms (FFs), and especially smaller FFs, tend to preserve in addition to economic interests. However, FF internationalisation literature has studied and measured SEW very little, let alone from a network perspective and in the context of family SMEs. SEW is inherently a dynamic, relational construct, as is the internationalisation process, in the modern network-based global business environment.

The dissertation uses varying methods, namely, a meta-synthesis of extant literature, case studies and multiple regression analysis. The mixed-method approach and the large qualitative and quantitative data enable broad yet in-depth understanding of SEW and international networking of family SMEs. The results and findings unravel different networking strategies of family SMEs on different internationalisation pathways, where family SMEs aim to reach SEW and economic goals through active international networking and close relationship-building with foreign partners. SEW is not necessarily a liability if family SMEs avoid its manifestation as emotional decision-making and, rather, derive relational capabilities (e.g. social capital) for use with financially oriented activities in internationalisation.

These findings clarify the potentially beneficial role of SEW as a relational construct and the means by which family SMEs can proceed and network successfully in the internationalisation process to reach noneconomic and economic goals. The related models and frameworks not only provide theoretical contributions by clarifying the coexistence of these goals and processes towards them but also provide practical implications for family-SME managers to assess and make decisions related to SEW and internationalisation. This dissertation also helps policy makers to understand the special nature of family SMEs through SEW, and how they can compete in the global business environment by utilising suitable international-networking strategies and pathways.
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PL 20
53851 Lappeenranta
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