Family businesses hold a pivotal position in the international economy. The primary aim of this study is to investigate the role of digital innovation in driving the internationalization of family firms, with a particular focus on how domestic and overseas social networks moderate this relationship. By drawing on internationalization literature and social network theory, we aim to contribute to a more nuanced and comprehensive understanding of the complex factors that influence the internationalization trajectories of family businesses in emerging economies.
To investigate our research questions, we employed a quantitative research design. We collected data from a sample of 241 Chinese high-technology family firms, utilizing both secondary sources and survey data. Utilizing ordinary least squares regression analysis and conducting several robustness checks, we thoroughly tested our hypotheses and gained insights into the intricate dynamics shaping the internationalization processes of family firms.
Our findings support the hypothesis that digital innovation positively impacts the internationalization of family firms. Furthermore, we found that domestic network centrality, domestic structural holes and overseas network centrality all amplify this effect. Conversely, overseas structural holes tend to temper the positive relationship between digital innovation and family firm internationalization. These results highlight the importance of considering both domestic and overseas social network dynamics in understanding the internationalization processes of family firms.
By focusing on Chinese high-technology family firms, we offer insights into a specific and understudied context, thereby expanding the generalizability of our findings. Our research integrates multiple theoretical perspectives and employs rigorous methodological approaches to advance the understanding of family firm internationalization in the digital era.
