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

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Show simple item record Kontinen, Tanja Ojala, Arto 2011-07-18T06:20:40Z 2011-07-18T06:20:40Z 2010
dc.identifier.citation Kontinen, T. & Ojala, A. (2010). Internationalization pathways of family SMEs: psychic distance as a focal point. Journal of Small Business and Enterprise Development, 17 (3), 437-454.
dc.identifier.issn 1462-6004
dc.description.abstract 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 market. The French market was psychically distant, but the case firms were able to overcome the distance by using different distance-bridging factors. Based on the findings, it can be argued that psychic distance has an especially important role in the internationalization and the FME of family SMEs, mainly because of their general cautiousness caused by family presence. Research limitations/implications – Although the case study method made it possible to acquire detailed knowledge about the firms' internationalization, the findings can be generalized only to some extent. Practical implications – Managers of family SMEs and family members should be provided with the capacity to overcome distance-creating factors, they might encounter in their FME. The decision to internationalize is a strategic change that will most probably change the historical harmony of the firm. Originality/value – Prior research has mainly focused only on general internationalization pathways of family SMEs. In addition and contrast to the previous studies, this paper investigates the role of perceived psychic distance in family SMEs' FME and entry mode choice in a certain target market. en
dc.language.iso eng
dc.publisher Emerald
dc.relation.ispartofseries Journal of Small Business and Enterprise Development
dc.rights openAccess fi
dc.rights © Emerald
dc.subject.other family firms en
dc.subject.other family business en
dc.subject.other Finland en
dc.subject.other France en
dc.subject.other international business en
dc.subject.other market entry en
dc.subject.other small-to-medium-sized enterprises en
dc.subject.other SMEs en
dc.subject.other perheyritykset en
dc.subject.other pienet ja keskisuuret yritykset en
dc.subject.other psyykkinen etäisyys en
dc.subject.other Suomi en
dc.subject.other Ranska en
dc.title Internationalization pathways of family SMEs: psychic distance as a focal point
dc.type Article
dc.identifier.urn URN:NBN:fi:jyu-2011071811157
dc.subject.kota 512
dc.contributor.laitos Taloustieteiden tiedekunta fi
dc.contributor.laitos School of Business and Economics en
dc.identifier.doi doi:10.1108/14626001011068725
dc.description.version Final Draft
dc.type.coar journal article
dc.description.reviewstatus peerReviewed
dc.relation.issn 1462-6004
dc.type.version acceptedVersion
dc.rights.accesslevel openAccess

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