Ownership, Relationships, and International Growth: The Process of Network Embeddedness in Family Firms

This study explores how network embeddedness influences the international growth and family dynamics of family firms, examining the relationship between ownership, purpose, and relationships. Despite significant research on networks and internationalization, the role of network embeddedness in family firms remains underexamined. Drawing on the case of TerraVigna, a fifth-generation Italian family firm in the wine industry, this study investigates the co-evolution of the firm’s internationalization and network embeddedness. We find that while network embeddedness supports international growth by fostering trust-based relationships with business partners, over time, the deepening and non-transferability of these relationships can hinder professionalization and create tensions within the family. These tensions often stem from overlapping roles and the challenge of balancing external relationships with family harmony. The study contributes to family business literature by highlighting the dynamic nature of network embeddedness, its co-evolution with internationalization, and the complex relationship between family dynamics and firm growth.