Abstract
Family firms benefit from familiness which refers to internal social capital and capabilities that are related to the family involvement in the business. However, how internal social capital is transformed into value adding activities that can subsequently enhance international firm performance remains unanswered. Based on the data collected from an emerging economy, our findings show that the positive effect of internal social capital on international firm performance is channelled through the resource configuration process by participative governance. Participative governance refers to the involvement of family members in addition to board members in designing strategic objectives and implementing them.
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