This article explores the process of learning and strategic change in small and medium-sized family firms (family SMEs). Organizational learning theory posits that knowledge must be integrated throughout the firm to facilitate strategic renewal. This process occurs in a particular way in family SMEs, according to their specific characteristics. In such firms the family’s role, the company size and the lack of formal procedures and systems strongly affect the process of learning and change. The study applies the 4I model of organizational learning to three case studies and offers empirical support for this model. The article has theoretical implications for variants of the 4I model as applied to family SMEs, and implications for practice related to the family’s role in starting and perpetuating the process of learning and change.