Internationalisation of a Migrant Family Firm and Contextual Uncertainty: The Role of Ethnic Social Networks

There is a dearth of studies that investigate how and why firms, formed by migrant families in uncertain contexts, internationalise. Such a topic is important as there are calls to understand the unique approach migrant families in business may take to address contextual uncertainty. Recent studies suggest that a focus on social networks may help to theorise the way migrant families in business go beyond host country borders. We argue that the social resources that migrant families in business leverage to internationalise, particularly ethnic networks, may provide them with both advantages and disadvantages. This chapter relies on a single case study of a diversified agribusiness, owned and managed by a German migrant family in business in Nicaragua. Findings reveal how contextual challenges foster the early and continued reliance on ethnic networks to internationalise. Critical events reinforce such dependence yet prompt the expansion of existing networks beyond family and ethnic circles. The chapter contributes to extending knowledge in the fields of internationalisation and family business in developing economies.