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Dynamic capabilities during the internationalization of MNCs from post-socialist emerging markets

Dynamic capabilities during the internationalization of MNCs from post-socialist emerging markets This study aims to examine, which dynamic capabilities (DC) are used by companies from post-socialist emerging markets (PSEM) during their internationalization.Design/methodology/approachThe paper uses a DC perspective together with the new internalization theory to examine the internationalization of companies from PSEM. It uses qualitative data from the interviews with 7 PSEM experts and the 16 cases of the multinational companies from PSEM.FindingsPSEM companies develop particular DC while expanding abroad whereby innovation capability helps them internationalize beyond neighboring countries and overcome the stigma of being less competitive than advanced economies. Adaptability is the DC that helps private companies, which differ from state-owned PSEM firms, overcome the uncertainties of the changing environment. Innovation capability and absorptive capability help PSEM firms surmount their geographical position. Alliancing activity is the DC that is used at the initial stages of internationalization to boost technological development.Originality/valueThe study contributes to the body of knowledge on the internationalization of companies from transition economies and sheds light on the nature of DC for the successful international expansion of PSEM firms. It attempts to address the lack of empirical studies on DC. Methodological value is in the combination of case studies’ analysis and interviews with experts, which adds novelty to the studied subject. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Multinational Business Review Emerald Publishing

Dynamic capabilities during the internationalization of MNCs from post-socialist emerging markets

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References (103)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1525-383X
DOI
10.1108/mbr-06-2019-0052
Publisher site
See Article on Publisher Site

Abstract

This study aims to examine, which dynamic capabilities (DC) are used by companies from post-socialist emerging markets (PSEM) during their internationalization.Design/methodology/approachThe paper uses a DC perspective together with the new internalization theory to examine the internationalization of companies from PSEM. It uses qualitative data from the interviews with 7 PSEM experts and the 16 cases of the multinational companies from PSEM.FindingsPSEM companies develop particular DC while expanding abroad whereby innovation capability helps them internationalize beyond neighboring countries and overcome the stigma of being less competitive than advanced economies. Adaptability is the DC that helps private companies, which differ from state-owned PSEM firms, overcome the uncertainties of the changing environment. Innovation capability and absorptive capability help PSEM firms surmount their geographical position. Alliancing activity is the DC that is used at the initial stages of internationalization to boost technological development.Originality/valueThe study contributes to the body of knowledge on the internationalization of companies from transition economies and sheds light on the nature of DC for the successful international expansion of PSEM firms. It attempts to address the lack of empirical studies on DC. Methodological value is in the combination of case studies’ analysis and interviews with experts, which adds novelty to the studied subject.

Journal

Multinational Business ReviewEmerald Publishing

Published: Aug 21, 2020

Keywords: Emerging markets (EM); Internationalization; Dynamic capabilities; Post-socialist country; MNC

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