The Impact of Digital Platform's Modular Architecture and Governance Mechanisms on Export Scope Expansion in Family SMEs
Examiners: Provost's Chair Professor Atreyi Kankanhalli and Assistant Professor Lim Shi Ying
Abstract:
Exportation is a key growth strategy for family small and medium enterprises (family SMEs). However, exporting across multiple countries is challenging and requires substantial investment to tackle foreign market entry barriers. This barrier can be resolved by building network relationships with international markets; however, family SMEs are wary of strategically forming network relationships due to their fear of socio-emotional wealth (SEW) loss. We aim to identify the type of business relationships which can stimulate the export process while preserving family SMEs' SEW. Among available business relationships, cross-border digital platform shows the most potential as a virtual partner for family SMEs. We draw on the Uppsala internationalization model, supplemented by SEW theory, to conceptually explain how modular architecture and fair governance mechanisms in the digital platform can positively stimulate family SMEs' internationalization process. Our study contributes to information system research, international business and family business literature, presenting particular interest to academics and practitioners.