The inner life of a born-global family firm: the nexus between internationalisation, social capital and organisational change

This thesis investigates the evolution of social capital within a born-global family firm (FF) in the agricultural sector, focusing on how social capital develops and transforms throughout international expansion and organisational change. Conducting a longitudinal study of APV, an Austrian manufacturer of agricultural machinery, the research examines the influence of family and non-family social capital on the firm’s swift global growth, the repercussions of internal restructuring on social capital relationships, and strategies for preserving relational assets in a sector centred around community. Over three years, data were gathered through semi-structured interviews, internal surveys, newsletters, and personal observations, employing a pragmatic methodology with a critical realist perspective.

The key findings highlight that both family and organisational social capital were instrumental in APV’s initial international success, underpinning trust, collaboration, and agility in adapting to foreign market demands. However, as APV underwent structural transformation aimed at enhancing efficiency after a critical incident, tensions emerged between family and non-family employees, leading to a decline in trust and engagement as non-family staff felt undervalued. This thesis emphasises the necessity of integrating the existing social capital framework into change processes to sustain relational cohesion and maintain employee commitment. A conceptual framework is presented, advocating for transparent communication, active employee participation, and respect for relational legacies as essential components in preserving social capital during periods of organisational transformation.

The study concludes that social capital not only facilitates strategic internationalisation but also bolsters the resilience and adaptability of family firms. For born-global FFs, especially in sectors where relationships and community ties are fundamental, safeguarding social capital amid change is crucial for long-term success. This research enhances the understanding of the interplay between family and non-family social capital during organisational change providing valuable insights for family firms facing similar transitions.