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A Dynamic Capabilities Perspective of Small and Medium-Sized Enterprises’ Internationalization: A Conceptual Model

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Recognizing the rapid rate of internationalization of small and medium-sized enterprises (SMEs) today, the significance of relevant theories and models that investigate internationalization phenomenon has increased. While the internationalization literature presents several approaches to internationalization of SMEs, previous studies are considered to be incomplete as they do not emphasize the dynamic capabilities possessed by owners/managers of SMEs operating in a turbulent international business environment. Based on conducting an integrative literature review, this study proposes a dynamic capabilities model focusing on internationalization of SMEs. This model argues dynamic capabilities namely, sensing, seizing and reconfiguring dynamic capabilities enhance SMEs’ internationalization. In addition, it proposes that environmental dynamism moderate the relationship between SMEs’ owners/managers dynamic capabilities and SME internationalization. Hypotheses development and suggesting further areas of research are discussed.
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Keywords: Dynamic Capabilities; Environmental Dynamism; Internationalization; SMEs

Document Type: Research Article

Affiliations: UCSI University, Jalan Menara Gading, 56000 Cheras, Kuala Lumpur, Malaysia

Publication date: April 1, 2017

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