Behind the internationalization of family SMEs: A strategy tripod synthesis

Abstract

AbstractResearch SummaryWe review and synthesize the growing literature concerning the internationalization of small and medium‐sized family enterprises (family SMEs) around a strategy tripod framework. In doing so, we identify various resource‐based, institution‐based, and industry‐based factors that contribute to family SME internationalization endeavors. We also pinpoint possible home‐country‐level and host‐country‐level institutional and industry‐based structural–cultural contingencies that may interact with family SME resource‐based factors to accentuate or impede their internationalization. Moreover, we highlight different behavioral orientations as crucial missing links that characterize the family SME internationalization scholarship. Overall, our comprehensive synthesis of the literature sheds light on how internationalization strategies of family SMEs vary based on important drivers and contextual influences captured in our tripod framework.Managerial SummaryFamily SMEs are distinct in that they possess the attributes of family businesses (family ownership and control) as well as those of SMEs (smallness, flexibility, and resource constraints). Managing these attributes may be difficult when it comes to executing important strategies such as internationalization. Family SMEs, therefore, need to be cognizant of various factors that can potentially impact their internationalization planning and success. The strategy tripod framework that we develop can provide guidance to managers in considering how resource‐based, institution‐based, and industry‐based factors drive family SME internationalization. Our integrative framework endeavors to help managers realize how their internationalization strategies and the resultant outcomes will vary depending on how they manage the three factors.