Strategic internationalization decisions and dynamic capability deployment for the internationally growing firm (IGF)

Abstract

Purpose

This paper aims to explore the relationship between strategic internationalization decisions and dynamic capabilities deployment for the internationally growing firm (IGF). Dynamic capabilities refer to a firm’s ability to adapt proactively to a changing business environment, emphasizing the importance of “doing the right things” rather than just “doing things right.

Design/methodology/approach

Literature-based, this paper proposes a model that links internationalization decisions and dynamic capabilities deployment, offering valuable insights for both research and practical application.

Findings

The study highlights that the IGF – focused on expansion and growth abroad – faces unique complexities that demand “doing the right things” in terms of strategic internationalization decisions. Three critical organizational capabilities – knowledge transfer, knowledge recombination and learning capabilities – are mechanisms linking strategic internationalization decisions to dynamic capability deployment in the IGF. These organizational capabilities enable the IGF to act entrepreneurially and deploy dynamic capabilities across borders.

Research limitations/implications

The model provides a practical framework illustrating the interconnectedness of strategic internationalization decisions and their combined effects on the ability of IGF to deploy dynamic capabilities to adapt to a changing global environment.

Originality/value

This research addresses a gap in the literature, challenging the conventional assumption that dynamic capabilities precede firms’ decisions to internationalize and that these dynamic capabilities can only be enhanced abroad.