Network Mechanisms in the Entry and Post-Entry Phases of Internationalization: Evidence from Finnish Family Firms

Abstract

In this study, we posed the questions: (i) What network mechanisms do family firms (FFs) use in their entry and post-entry? (ii) How do they use these network mechanisms? (iii) Why do they use these mechanisms? We based our study on social network theory, and on two opposing network mechanisms, network closure and structural holes, referring also to research on FFs and international networking. Applying a multiple case design with 15 Finnish FFs, we identified four types of FFs – trotter, preserver, explorer and conqueror – based on how they used their network mechanisms at entry and post-entry. We offer a new mechanism that we label network termination and explain the heterogeneous networking behaviour of the investigated cases. During post-entry, bifurcation-biased FFs used network mechanisms differently from FFs that were able to rely on non-family relational assets. The study contributes to social network theory, and sheds light on FF heterogeneity in the context of international networking.