“…Choksy, Sinkovics and Sinkovics, 2017;Ponte et al, Chapter 6 this volume;Raj-Reichert, Chapter 22 this volume). A microfoundations approach is well suited to investigate how capabilities emerge from individual actions and interactions in both MNEs and suppliers and what managers can do to create or change capabilities (Felin and Foss, 2005;Foss, 2009;Hoque, Sinkovics, and Sinkovics, 2016;Sinkovics, Hoque and Sinkovics, 2018a). This is because it aims at achieving an understanding of how individual-level factors influence organizations, how the interactions of individuals contribute to organization level outcomes, and how macro-level variables are mediated by micro-level actions and interactions (Abell, Felin and Foss, 2008;Felin, Foss and Ployhart, 2015).…”