What do we know about capabilities and early internationalization? A review and synthesis

Abstract

Purpose The purpose of this study is to organize and assess knowledge on the capabilities pertinent to the early internationalization of born globals (BGs) and international new ventures (INVs). Design/methodology/approach A systematic approach is used to search, code, organize and synthesize 155 peer-reviewed journal articles on capabilities and early internationalization. Findings The study delimits eight operational and five dynamic capabilities. The synthesis links capabilities to three antecedents (i.e. firm specific factors, managerial socio cognitive attributes and market factors) and three outcomes (i.e. precocity, survival and performance). While 7 of the 12 linkages identified are well-established, relationships involving market factors, survival and dynamic capabilities are sparsely researched. Research limitations/implications The authors know more about the effects of firm specific factors and managerial socio cognitive attributes on operational and dynamic capabilities than we do the influence of market factors on either group of capabilities. Likewise, the authors know more about the influence of operational and dynamic capabilities on performance than we do their impact on precocity or survival. Practical implications As the pandemic has shown, businesses with adaptable capabilities (e.g. shifting from a brick and mortar to an online/omnichannel approach or micro-breweries competent to switch from manufacturing beer to hand sanitizer) have increased their chance of survival while helping society cope. Originality/value This to the authors’ knowledge is the first study to provide a comprehensive review of literature on the nebulous concept of capabilities, in the context of the burgeoning research stream on early internationalization.

Entrepreneurial internationalisation of Nepalese artisanal firms: a dynamic capabilities perspective

“…In doing so, the paper contributes to augmenting the existing entrepreneurial internationalisation literature, which has not paid sufficient attention to international ventures' post-entry growth and survival strategies (Khan and Lew, 2018). Furthermore, by exploring the connection between DCs and international ventures' survival, this study answers a recent research call by Kahiya and Warwood (2022).…”

“…Second, by exploring the roles of entrepreneurs' DCs in enabling and sustaining small Nepalese firms' entrepreneurial internationalisation, this article advances the current entrepreneurial internationalisation literature, which is relatively silent about firms in developing economies (Chandra et al, 2020). Also, the existing entrepreneurial internationalisation research has paid insufficient attention to international ventures' postentry growth and survival (Khan and Lew, 2018), particularly from the DCs perspective (Kahiya and Warwood, 2022). This study's findings contribute to filling these knowledge voids.…”

“…Similarly, the literature suggests that several DCs can play crucial roles in firms' entrepreneurial internationalisation. The recent systematic literature review of capabilities and firms' early internationalisation by Kahiya and Warwood (2022) reveals five pivotal DCs: absorptive, ambidexterity, dynamic managerial, dynamic learning and dynamic social capital capabilities. Likewise, in their conceptual work, Weerawardena et al (2007) stress that Nepalese artisanal firms market-focussed learning, internally focussed learning, networking and marketing capabilities are critical DCs for firms' entrepreneurial internationalisation.…”

“…, 2020). Also, the existing entrepreneurial internationalisation research has paid insufficient attention to international ventures' post-entry growth and survival (Khan and Lew, 2018), particularly from the DCs perspective (Kahiya and Warwood, 2022). This study's findings contribute to filling these knowledge voids.…”

Human capital and its role in start-ups’ early internationalisation. An example of Polish new ventures

“…Early internationalisation is a phenomenon that is currently on the spectrum of interest of many researchers around the world (Kahiya, Warwood, 2022). The issue has been relevant as the research object within the framework of international entrepreneurship since the mid-1990s.…”