Internationalization pathways of family SMEs:Psychic distance as a focal point

Purpose: The purpose of this paper is to investigate how psychic distance affects the internationalization process, foreign market entry (FME), and entry mode choice of Finnish small and medium-sized family enterprises (family SMEs) operating in France. Design/methodology/approach: The paper reports findings from an in-depth case study covering four Finnish manufacturing family SMEs operating in the French market. The data were analyzed using the Uppsala model and distance creating and distance-bridging factors encountered in the FME to France. Findings: The findings reveal that the family SMEs mainly followed a sequential process and favored indirect entry modes before entering the French …

Causation and Effectuation in the Foreign Market Entry and Selection of Software SMEs

Current research emphasizes several factors impacting on SME internationalization. However, it remains unclear that how entrepreneurs in SMEs think and implement their internationalization and select target countries for foreign operations. In this qualitative case study, foreign market selection and entries of five Finnish software firms are analyzed by using the theory of causation and effectuation. The findings imply that software SMEs used more causation logic in their foreign market selection and effectuation logic in their foreign market entries. The case firms that followed causation logic in FMS entered more distant countries. peerReviewed

Succeeding in the French market:Recommendations for small businesses

PurposeThe purpose of this research is make managerial recommendations for firms operating or planning to operate in the French market.Design/methodology/approachThis study reports findings from an in‐depth case study covering eight Finnish SMEs operating in the French market. To facilitate the understanding of the recommendations, the findings are discussed through typical features of the French culture.FindingsThe findings report the best practices of eight Finnish SMEs operating in France.Research limitations/implicationsAlthough the case study method made it possible to acquire detailed knowledge about the firms' internationalization, the findings can be generalized only to some extent.…

Note to Instructors: Biohit: A Global, Family-Owned Company Embarking on a New Phase

The article focuses on the intention of Osmo Suovaniemi, the chief executive officer (CEO) of the family-owned biotechnology company Biohit established in Finland 1988, to pass his position to someone who do not belong to the company. Topics include the entrepreneurial career of Suovaniemi, the reflections of the managers regarding the future of the company, and the hopes of the executives for the diagnostics products of the company.

Yrittäjyyskasvatuksen puheenvuoroja : kohti yrittäjyyden monimuotoista oppimista ja opettamista

Case Studies in Family Business Research

Based on a review of 63 case studies from the family business field, the authors emphasize the potential of critical realist case studies for family business scholars. The review revealed that the positivistic case study introduced by Yin and Eisenhardt is the disciplinary convention of family business field. Since there are several events and mechanisms underspinning social phenomena, such as succession, they need to be both explanained (erklären, matching the positivist view) and understood (verstehen, matching the constructivist/interpretive view) which is the staring point of critical realism (Bhaskar, 1998; Sayer, 1992). Hence critical realis ontology can be very fruitful for future st…

Biohit: A Global, Family-Owned Company Embarking on a New Phase

This case concerns Biohit, a family-owned biotechnology company established in Finland in 1988, selling liquid handling and diagnostics products in the global market. The case also describes the entrepreneurial career of Biohit’s CEO Osmo Suovaniemi, since the company is mainly based on the know-how that Osmo gained as ownermanager of his two earlier companies, Labsystems and Eflab, during the 1970s and 1980s. Hence, this case describes the prior and initial phases of Biohit, examining also its commitment to innovation and its management practices. The case ends with the situation as of March 2010, and includes the reflections of Biohit’s managers on the future of the company. At this point…

Entrepreneurial leadership and familiness as resources for strategic entrepreneurship

PurposeThis paper seeks to investigate how familiness and entrepreneurial leadership are related to each other in family firms. Familiness and entrepreneurial leadership are viewed as resources for strategic entrepreneurship. The aim of the paper is to shed light on familiness in three family firms and contribute to the field's growing body of work.Design/methodology/approachThe paper employs a case study method. The interviewees were interviewed by theme questions and secondary information was gathered to strengthen the empirical section. Qualitative interpretation of empirical data was used.FindingsThe findings demonstrate the variety of familiness and entrepreneurial leadership within fa…

Social capital in the international operations of family SMEs

PurposeThe aim of this study is to discuss how social capital is developed in the internationalization process of small and medium‐sized family enterprises (family SMEs).Design/methodology/approachThis paper reports findings from an in‐depth multiple case study with four Finnish manufacturing family SMEs. The data were analyzed through the perspectives of structural holes, network closure, and the interplay between these two mechanisms.FindingsThe material in the paper demonstrated that family entrepreneurs had a large number of structural holes when launching international operations, but also after several years of running international operations. Instead of trying to span structural hol…

Biohit: A Global, Family–Owned Company Embarking on a New Phase

This case concerns Biohit, a family–owned biotechnology company established in Finland in 1988, selling liquid handling and diagnostics products in the global market. The case also describes the entrepreneurial career of Biohit's CEO Osmo Suovaniemi, since the company is mainly based on the know–how that Osmo gained as owner–manager of his two earlier companies, Labsystems and Eflab, during the 1970s and 1980s. Hence, this case describes the prior and initial phases of Biohit, examining also its commitment to innovation and its management practices. The case ends with the situation as of March 2010 and includes the reflections of Biohit's managers on the future of the company. At this poin…

The internationalization of family businesses: A review of extant research

Abstract Among family businesses (FBs) internationalization has become a strategy for growth, and sometimes even for survival. This review article presents an analysis conducted on 25 refereed journal articles on FB internationalization. The articles typically portrayed the internationalization of FBs as a sequential process following the Uppsala model of internationalization; by contrast, some FBs were regarded as “born-again” global firms. In methodological terms, most of the articles focused on what-questions rather than why/how-questions. The articles did not make much use of internationalization or FB-specific theories. Our study takes a step towards clarifying the following issues: (i…

International Opportunity Recognition among Small and Medium-Sized Family Firms*

Current research in the field of entrepreneurship emphasizes the importance of opportunity recognition as a key element in the entrepreneurial process. It has been recognized that network ties, act...

Network ties in the international opportunity recognition of family SMEs

Abstract The importance of network ties is emphasized in the current literature on opportunity recognition. However, it is unclear how firms with limited bridging networks, such as family SMEs, recognize international opportunities through their network ties. In this case study we found that in gaining foreign market entry, those family SMEs that lack existing network ties recognize opportunities through weak ties formed in international exhibitions. The findings also indicate that rather than being proactive, family SMEs respond reactively to opportunities that emerge coincidentally. The trustfulness of the tie is important when they consider these opportunities and form new ties for inter…

Internationalization pathways of family SMEs

Internationalization pathways among family-owned SMEs

PurposeThe purpose of this paper is to increase understanding of the internationalization of family firms; to investigate how the framework by Bell et al. on the internationalization patterns of firms could explain the internationalization pathways taken by family‐owned small to medium‐sized enterprises (SMEs); and to identify typical patterns and features in the various pathways taken by family‐owned SMEs.Design/methodology/approachThis paper reports findings from an in‐depth multiple case study with eight Finnish family‐owned SMEs.FindingsThe ownership structure had the most important role in defining the internationalization pathways followed by the family‐owned SMEs: a fragmented owners…

Distance Factors in the Foreign Market Entry of Software SMEs

Recent studies have indicated that the internationalization process of software SMEs is somewhat independent on the effect of psychic or geographic distance. However, these studies have analyzed the general pattern of entries where software SMEs not commonly follow a step-wise entry route from nearby countries to distant ones. Thus, it remains unknown what the effect of psychic and geographical distance is when these firms enter a distant foreign market. The findings in this case study reveal that psychic and geographic distance inhibited the foreign market entry of software SMEs. However, the distant foreign market entry of these firms was facilitated by distance-bridging and distance-comp…

The internationalization of family businesses: A review of extant research

Among family businesses (FBs) internationalization has become a strategy for growth, and sometimes even for survival. This review article presents an analysis conducted on 25 refereed journal articles on FB internationalization. The articles typically portrayed the internationalization of FBs as a sequential process following the Uppsala model of internationalization; by contrast, some FBs were regarded as “born-again” global firms. In methodological terms, most of the articles focused on what-questions rather than why/how-questions. The articles did not make much use of internationalization or FB-specific theories. Our study takes a step towards clarifying the following issues: (i) the cur…