Crossing the chasm: The role of dynamic managerial capabilities in the turning point of early internationalizing firms

Abstract

The International Entrepreneurship literature has overlooked the "turning point" in early internationalizing firms (EIF), i.e. the period during which they transition from international entry to post-entry stages. Leveraging Dynamic Managerial Capabilities, I examine PATI, a successful EIF undergoing this transition. Throughout this article, I demonstrate how the characteristics of EIF managers and their dynamic managerial capabilities interact with the organization's dynamic capabilities. I then emphasize how two sets of dynamic managerial capabilities are crucial for EIFs at their turning point: one linked to R&D and engineering, and the other to support and sales. Notably, the latter involves global dynamic managerial capabilities. I also initiate a discussion regarding the potential diversity of dynamic managerial capabilities related to other firms’ activities. Finally, I show how, after the turning point, founders abandon their status as actors in internationalization to concentrate solely on their decision-makers’ role.