Capabilities and the internationalisation of smaller-sized, service-oriented firms in the southern hemisphere

Abstract

Underpinned by the threshold and dynamic capabilities perspectives as a sub-set of Resource-Based Theory, the objective of this study is to understand ways in which management teams build types of capabilities to facilitate their internationalisation activities. Thirty-one semi-structured interviews took place among smallersized, service-oriented internationalising firms located in three countries within the southern hemisphere: two emerging economies (Chile and Colombia) and one developed economy (New Zealand). The findings indicate that some management teams were able to develop threshold capabilities enabling them to operate outside their domestic market. In contrast, certain management teams appeared to possess dynamic capabilities, facilitating their evolving business models and sustainability. Particular capabilities allowed the respective firms, regardless of their national origin, to exhibit varying performance-enhancing internationalisation strategies. The study contributes to theory and practice in the domain of entrepreneurial marketing, offering new insights questioning whether certain capabilities are enough to sustain particular management teams' internationalisation behaviour.

The dark-side of coopetition: Influences on the paradoxical forces of cooperativeness and competitiveness across product-market strategies

“…This current study nonetheless considers coopetition to include resources and capabilities sharing rather than simply capabilities and consequently resource based theory (in conjunction with the relational view) is more appropriate. Indeed, certain under-resourced firms may find difficulty in gaining dynamic capabilities and instead simply threshold capabilities (Felzensztein et al, 2020;Sraha et al, 2020).…”

Business families do it differently! Navigating cycles and waves of family firm internationalization

“…The traditional, stepwise internationalization process of family firms can be attributed to a multiplicity of factors at the organizational, family, individual and environmental levels. Organizational factors encompass the need of resources and capabilities, human capital (Gimmon and Felzensztein, 2021; Felzensztein et al. , 2020; Mallon et al.…”

“…The traditional, stepwise internationalization process of family firms can be attributed to a multiplicity of factors at the organizational, family, individual and environmental levels. Organizational factors encompass the need of resources and capabilities, human capital (Gimmon and Felzensztein, 2021;Felzensztein et al, 2020;Mallon et al, 2018;Pino et al, 2021), as well as strategic and social networks (Calabr o et al, 2016;Cristiano, 2018). In line with the RBV (Barney, 1991;Wernerfelt, 1984), family firms combine their unique resources, derived from family involvement in the firm (Habbershon and Williams, 1999), to core competencies and capabilities that allow them building competitive advantages.…”

Entrepreneurial marketing orientation of the Polish and Finnish SMEs and its environmental determinants

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“…The application of EM can reduce these liabilities (Weerawardena et al, 2019). Moreover, being active in foreign markets is related to a more significant uncertainty resulting from facing different cultures, regulations (Felzensztein et al, 2020) or other market conditions, which again requires an entrepreneurial approach (Whalen et al, 2016). Export activity of an SME implies that it operates in a more turbulent environment than others, as the international market environment is characterized by higher turbulence, uncertainty, complexity (Panizzon et al, 2020;Olabode et al, 2018) and vulnerability to external shocks.…”