This study examines how family-owned small and medium-sized enter prises (SMEs) navigate the complexities of international expansion while preserving their local identities and connections. Cognizant of their nested roles in local economies and the risks to their local reputation and legitimacy, many family SMEs are hesitant to venture into interna tional markets. Using a longitudinal case study approach, we examine how four Swedish family SMEs partner with regional multinational enter prises (MNEs) and pursue international opportunities by leveraging bond ing social capital (within local networks) and bridging social capital (through international ties). We advance a model that captures the ten sions that arise throughout the internationalization process. Our study demonstrates that despite the paradoxical tensions related to the trade- off between localness and international expansion, family SMEs can lever age bridging social capital with local MNEs to access global value chains while balancing the need to preserve localness and their role in their regions through bonding social capital. Conceptualized as a form of net work governance this ‘balancing competence’ enables family SMEs to manage paradoxical tensions effectively by sustaining local legitimacy while simultaneously pursuing international opportunities