A3 Book section, Chapters in research books
Socioemotional Wealth and Networking in the Internationalisation of Family SMEs (2021)

Metsola, J., Torkkeli, L., Leppäaho, T., Arenius, P., & Haapanen, M. (2021). Socioemotional Wealth and Networking in the Internationalisation of Family SMEs. In T. Leppäaho, & S. Jack (Eds.), The Palgrave Handbook of Family Firm Internationalization (pp. 63-101). Palgrave Macmillan. https://doi.org/10.1007/978-3-030-66737-5_3

JYU authors or editors

Publication details

All authors or editorsMetsola, Jaakko; Torkkeli, Lasse; Leppäaho, Tanja; Arenius, Pia; Haapanen, Mika

Parent publicationThe Palgrave Handbook of Family Firm Internationalization

Parent publication editorsLeppäaho, Tanja; Jack, Sarah



Publication year2021

Pages range63-101

Number of pages in the book575

PublisherPalgrave Macmillan

Place of PublicationCham

Publication countrySwitzerland

Publication languageEnglish


Publication open accessNot open

Publication channel open access

Publication is parallel published (JYX)https://jyx.jyu.fi/handle/123456789/78272


In internationalisation processes, international expansion exposes family SMEs to external networking and the risks such expansion entails, and perceived threats to their socioemotional wealth (SEW) might restrain their willingness to take these actions. However, very few studies measure SEW and associate it with internationalisation. Considering SEW preservation’s prominence in family SMEs and SMEs’ heavy dependence on networking during internationalisation, we hypothesise that SEW preservation has a negative association and networking has a positive association with the family SMEs’ degree of internationalisation (DOI). We reconstruct four SEW constructs that carry significance for family SMEs—family-heritage maintenance, family-controlled decision-making, familial relationship-building and emotional decision-making—used in the SEW-related hypotheses and as moderators of networking’s effects. A multiple regression analysis of 89 Finnish SMEs (47 of which were family SMEs) suggests that emotional decision-making has a strong negative relationship and networking has a strong positive relationship with DOI. The results extend and clarify the restraining role of SEW through affective preferences and needs in family-SME internationalisation, while also emphasising the economising role of networking in offsetting dysfunctional SEW and related bifurcation bias in the long run.

Keywordssocial capitalemotionsdecision makingnetworking (making contacts)internationalisationfamily businessessmall and medium-sized enterprises

Free keywordssocioemotional wealth; emotional decision-making; bifurcation bias; networking; internationalisation; family SME

Contributing organizations

Ministry reportingYes

Reporting Year2021

JUFO rating3

Last updated on 2024-22-04 at 14:49