Internationalisation of traditional family businesses : an absorptive capacity approach

Abstract

This study examines the internationalisation of traditional sector Maltese small and medium-sized family businesses (SMFBs) through an absorptive capacity (ACAP) lens. We argue that extant explanations of internationalisation as entrepreneurial, dynamic and risk-taking behaviour do not adequately account for the involvement of SMFBs in global business. To this end, we extend the conceptual frame of absorptive capacity to SMFBs’ Internationalisation to examine the acquisition, assimilation and exploitation of internationalisation knowledge. Mapping the concept to a non-high tech context answers calls for broader operationalisation of ACAP beyond that pertaining to formalised knowledge and scientifically-related activity. Focusing on SMFBs, this study also addresses an important gap in SMFB Internationalisation.