Dynamic capabilities to identify and exploit international opportunities: case study in an electronic games company
DOI:
https://doi.org/10.18568/internext.v19i2.793Keywords:
Dynamic capabilities, Born globals, Opportunities, Internationalization of companiesAbstract
Objective: To analyze how dynamic capabilities are associated with the processes of identifying and exploiting international opportunities.
Method: The research consists of a case study, qualitative in nature, with a retrospective approach. Data were collected through interviews, documentary research and observation, with triangulation of data sources. The data were analyzed using the Constant Comparison Method and with the help of the Atlas.ti software, version 8.0.
Main Results: The company analyzed is able to identify international opportunities using network, entrepreneurial and innovation capabilities. The innovation capacity was used only in creation processes, while the others were used in both discovery and creation processes. However, to explore some opportunities, these capabilities were not sufficient, and it was necessary to develop market orientation, learning and adaptation capabilities.
Relevance / Originality: The literature has sought to explain the processes of identifying and exploiting opportunities based on ordinary capabilities. The approach adopted in this research considers a set of capabilities that are created, adapted or transformed depending on environmental demands, which makes them truly dynamic and enables companies to access international opportunities.
Theoretical / Methodological Contributions: The contribution of the study lies in understanding what capabilities companies need to develop to expand their international operations.
Downloads
References
Ahmadian, S., & Abdolmaleki, S. (2018). Network typology and international opportunity recognition: moderating role of entrepreneurial orientation. Journal of Global Entrepreneurship Research, 8(1), 17. https://doi.org/10.1186/s40497-018-0104-8 DOI: https://doi.org/10.1186/s40497-018-0104-8
Al‐Aali, A., & Teece, D. J. (2014). International entrepreneurship and the theory of the (long‐lived) international firm: a capabilities perspective. Entrepreneurship Theory and Practice, 38(1), 95-116. https://doi.org/10.1111/etap.12077 DOI: https://doi.org/10.1111/etap.12077
Alonso, A. D., Kok, S. K., & O'Brien, S. (2019). Understanding approaches to innovation through the dynamic capabilities lens. International Journal of Innovation Management, 23(6), 1950054. https://doi.org/10.1142/S1363919619500543 DOI: https://doi.org/10.1142/S1363919619500543
Andersson, S., & Evers, N. (2015). International opportunity recognition in international new ventures—a dynamic managerial capabilities perspective. Journal of International Entrepreneurship, 13, 260-276. https://doi.org/10.1007/s10843-015-0149-5 DOI: https://doi.org/10.1007/s10843-015-0149-5
Autio, E., George, G., & Alexy, O. (2011). International entrepreneurship and capability development—qualitative evidence and future research directions. Entrepreneurship Theory and Practice, 35(1), 11-37. https://doi.org/10.1111/j.1540-6520.2010.00421.x DOI: https://doi.org/10.1111/j.1540-6520.2010.00421.x
Bai, W., & Johanson, M. (2019). International opportunity networks. Industrial Marketing Management, 70, 167-179. https://doi.org/10.1016/j.indmarman.2017.07.004 DOI: https://doi.org/10.1016/j.indmarman.2017.07.004
Banholzer, M. (2023). Recife se destaca na produção de games educativos e de entretenimento. JCNE10. Recuperado de https://jc.ne10.uol.com.br/canal/economia/pernambuco/noticia/2020/01/05/recife-se-destaca-na-producao-de-games-educativos-e-de-entretenimento-396408.php
Bhatti, W. A., Larimo, J., & Servais, P. (2020). Relationship learning: A conduit for internationalization. International Business Review, 29(3), 101694. https://doi.org/10.1016/j.ibusrev.2020.101694 DOI: https://doi.org/10.1016/j.ibusrev.2020.101694
Buccieri, D., Javalgi, R. G., & Cavusgil, E. (2020). International new venture performance: Role of international entrepreneurial culture, ambidextrous innovation, and dynamic marketing capabilities. International Business Review, 29(2), 101639. https://doi.org/10.1016/j.ibusrev.2019.101639 DOI: https://doi.org/10.1016/j.ibusrev.2019.101639
Chandra, Y. (2017). A time-based process model of international entrepreneurial opportunity evaluation. Journal of International Business Studies, 48(4), 423-451. https://doi.org/10.1057/s41267-017-0068-x DOI: https://doi.org/10.1057/s41267-017-0068-x
Chandra, Y., Styles, C., & Wilkinson, I. F. (2012). An opportunity-based view of rapid internationalization. Journal of International Marketing, 20(1), 74-102. https://doi.org/10.1509/jim.10.0147 DOI: https://doi.org/10.1509/jim.10.0147
Chaudhuri, R., Vrontis, D., & Chatterjee, S. (2024). External environment and internal dynamics of “born global”: strategic and operational firm performance. Management Decision, 62(1), 274-300. https://doi.org/10.1108/MD-02-2023-0168 DOI: https://doi.org/10.1108/MD-02-2023-0168
Chavan, M., & Agarwal, R. (2016). The efficacy of linkages for relational capability building and internationalization-Indian and Australian mining firms. International Journal of Business and Economics, 15(1), 51-78.
Chen, C. L., & Jaw, Y. L. (2009). Building global dynamic capabilities through innovation: A case study of Taiwan's cultural organizations. Journal of Engineering and Technology Management, 26(4), 247-263. https://doi.org/10.1016/j.jengtecman.2009.10.002 DOI: https://doi.org/10.1016/j.jengtecman.2009.10.002
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10‐11), 1105-1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11%3C1105::AID-SMJ133%3E3.0.CO;2-E DOI: https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E
Ellis, P. D. (2011). Social ties and international entrepreneurship: Opportunities and constraints affecting firm internationalization. Journal of International Business, 42(1), 99-127. DOI: https://doi.org/10.1057/jibs.2010.20
Fainshmidt, S., Smith, A. W., & Aguilera, R. V. (2022). Where do born globals come from? A neoconfigurational institutional theory. Organization Science, 33(4), 1251-1272. https://doi.org/10.1287/orsc.2021.1497 DOI: https://doi.org/10.1287/orsc.2021.1497
Feng, J. B., Liu, S. Y. H., & Liu, L. A. (2023). Cognitive antecedents of EMNEs’ dynamic capabilities: A case study of global identity at Lenovo. Journal of Business Research, 154, 113312. https://doi.org/10.1016/j.jbusres.2022.113312 DOI: https://doi.org/10.1016/j.jbusres.2022.113312
Figueiredo, M., Ferreira, J. J., & Vrontis, D. (2024). Perspectives on dynamic capabilities and ambidexterity in born-global companies: Theoretical framing review and research agenda. Journal of International Management, 30(1), 101099. https://doi.org/10.1016/j.intman.2023.101099 DOI: https://doi.org/10.1016/j.intman.2023.101099
Fleury, A., Fleury, M. T. L., & Borini, F. M. (2013). Is production the core competence for the internationalization of emerging country firms? International Journal of Production Economics, 140(1), 439-449. https://doi.org/10.1016/j.ijpe.2012.06.027 DOI: https://doi.org/10.1016/j.ijpe.2012.06.027
Flick, U. (2009). Uma introdução à pesquisa qualitativa (3a ed.). Bookman.
Frasquet, M., Dawson, J., & Mollá, A. (2013). Post-entry internationalisation activity of retailers: An assessment of dynamic capabilities. Management Decision, 51(7), 1510-1527. https://doi.org/10.1108/MD-02-2013-0081 DOI: https://doi.org/10.1108/MD-02-2013-0081
George, N., Parida, V., Lahti, T., & Wincent, J. (2016). A systematic literature review of entrepreneurial opportunity recognition: insights on influencing factors. International Entrepreneurship and Management Journal, 12(2), 309-350. https://doi.org/10.1007/s11365-014-0347-y DOI: https://doi.org/10.1007/s11365-014-0347-y
Gnizy, I. (2019). The role of inter-firm dispersion of international marketing capabilities in marketing strategy and business outcomes. Journal of Business Research, 105, 214-226. https://doi.org/10.1016/j.jbusres.2019.08.015 DOI: https://doi.org/10.1016/j.jbusres.2019.08.015
Góes, G. B. (2014). Processo de internacionalização na indústria de jogos eletrônicos brasileira: estudo de casos [dissertação de mestrado]. Pontifícia Universidade Católica do Rio de Janeiro, Departamento de Administração.
Hermawati, A. (2020). The implementation of dynamic capabilities for SMEs in creating innovation. Journal of Workplace Learning, 32(3), 199-216. https://doi.org/10.1108/JWL-06-2019-0077 DOI: https://doi.org/10.1108/JWL-06-2019-0077
Jacob, J., Belderbos, R., & Lokshin, B. (2023). Entangled modes: Boundaries to effective international knowledge sourcing through technology alliances and technology-based acquisitions. Technovation, 122, 102661. https://doi.org/10.1016/j.technovation.2022.102661 DOI: https://doi.org/10.1016/j.technovation.2022.102661
Johanson, J., & Vahlne, J. E. (1977). The internationalization process of the firm. Journal of International Business Studies, 8(1), 23-32. https://doi.org/10.1057/palgrave.jibs.8490676 DOI: https://doi.org/10.1057/palgrave.jibs.8490676
Johanson, J., & Vahlne, J. E. (2009). The Uppsala internationalization process model revisited-from liability of foreignness to liability of “Outsidership”. Journal of International Business Studies, 40(9), 1411-1431. https://doi.org/10.1057/jibs.2009.24 DOI: https://doi.org/10.1057/jibs.2009.24
Kalinic, I., Sarasvathy, S. D., & Forza, C. (2014). “Expect the unexpected”: Implications of effectual logic on the internationalization process. International Business Review, 23(3), 635-647. https://doi.org/10.1016/j.ibusrev.2013.11.004 DOI: https://doi.org/10.1016/j.ibusrev.2013.11.004
Kessler, A., & Zipper-Weber, V. (2024). Born-again global internationalization in family businesses as a process: a dynamic capabilities perspective in the context of socioemotional wealth. Journal of Family Business Management, 13(4), 1366-1391. https://doi.org/10.1108/JFBM-01-2023-0005 DOI: https://doi.org/10.1108/JFBM-01-2023-0005
Khalid, S., & Larimo, J. (2012). Firm-specific advantage in developed markets: a dynamic capability perspective. Management International Review, 52(2), 233-250. https://doi.org/10.1007/s11575-012-0137-0 DOI: https://doi.org/10.1007/s11575-012-0137-0
Knight, G. A., & Cavusgil, S. T. (2004). Innovation, organizational capabilities, and the born-global firm. Journal of International Business Studies, 35(1), 334. https://doi.org/10.1057/palgrave.jibs.8400096 DOI: https://doi.org/10.1057/palgrave.jibs.8400096
Kontinen, T., & Ojala, A. (2011). Network ties in the international opportunity recognition of family SMEs. International Business Review, 20(4), 440-453. https://doi.org/10.1016/j.ibusrev.2010.08.002 DOI: https://doi.org/10.1016/j.ibusrev.2010.08.002
Li, L., Li, D., Goerzen, A., & Shi, W. S. (2018). What and how do SMEs gain by going international? A longitudinal investigation of financial and intellectual resource growth. Journal of World Business, 53(6), 817-834. https://doi.org/10.1016/j.jwb.2018.07.001 DOI: https://doi.org/10.1016/j.jwb.2018.07.001
Mainela, T., & Puhakka, V. (2011). Role of networks in emergence of international new ventures. International Journal of Entrepreneurial Venturing, 3(1), 5-25. https://doi.org/10.1504/IJEV.2011.037855 DOI: https://doi.org/10.1504/IJEV.2011.037855
Mainela, T., Puhakka, V., & Servais, P. (2014). The Concept of International Opportunity in International Entrepreneurship. International Journal of Marketing Reviews, 16(1), 105-129. https://doi.org/10.1111/ijmr.12011 DOI: https://doi.org/10.1111/ijmr.12011
Mäkelä, J., Nummela, N., & Paavilainen-Mäntymäki, E. (2023). Scaling and scalability in volatile global markets: an exploratory study of rapidly internationalizing Finnish SMEs. In C. Felzensztein & S. Fuerts (eds.). A Research Agenda for International Entrepreneurship (pp. 117-142). Edward Elgar. https://doi.org/10.4337/9781803925691.00011 DOI: https://doi.org/10.4337/9781803925691.00011
Melin, L. (1992). Internationalization as a strategy process. Strategic Management Journal, 13(S2), 99-118. https://doi.org/10.1002/smj.4250130908 DOI: https://doi.org/10.1002/smj.4250130908
Merriam, S. B. (2009). Qualitative Research and Case Study Applications in Education. Jossey-Bass.
Mihailova, I. (2023). Business model adaptation for realized international scaling of born-digitals. Journal of World Business, 58(2), 101418. https://doi.org/10.1016/j.jwb.2022.101418 DOI: https://doi.org/10.1016/j.jwb.2022.101418
Miocevic, D., & Morgan, R. E. (2018). Operational capabilities and entrepreneurial opportunities in emerging market firms. International Marketing Review, 35(2), 320-341. https://doi.org/10.1108/IMR-12-2015-0270 DOI: https://doi.org/10.1108/IMR-12-2015-0270
Monferrer, D., Moliner, M. Á., Irún, B., & Estrada, M. (2021). Network, market, and entrepreneurial orientations as facilitators of international performance in born globals. The mediating role of ambidextrous dynamic capabilities. Journal of Business Research, 137, 430-443. https://doi.org/10.1016/j.jbusres.2021.08.058 DOI: https://doi.org/10.1016/j.jbusres.2021.08.058
Mort, G., & Weerawardena, J. (2006). Networking capability and international entrepreneurship. International Marketing Review, 23(5), 549-572. https://doi.org/10.1108/02651330610703445 DOI: https://doi.org/10.1108/02651330610703445
Mostafiz, M. I., Sambasivan, M., & Goh, S. K. (2019). Impacts of dynamic managerial capability and international opportunity identification on firm performance. Multinational Business Review, 27(4), 339-363. https://doi.org/10.1108/MBR-09-2018-0061 DOI: https://doi.org/10.1108/MBR-09-2018-0061
Mudalige, D., Ismail, N. A., & Malek, M. A. (2019). Exploring the role of individual level and firm level dynamic capabilities in SMEs’ internationalization. Journal of International Entrepreneurship, 17(1), 41-74. https://doi.org/10.1007/s10843-018-0239-2 DOI: https://doi.org/10.1007/s10843-018-0239-2
Muzychenko, O., & Liesch, P. W. (2015). International opportunity identification in the internationalisation of the firm. Journal of World Business, 50(4), 704-717. https://doi.org/10.1016/j.jwb.2014.12.001 DOI: https://doi.org/10.1016/j.jwb.2014.12.001
Nguyen, Q. A., & Mort, G. S. (2021). Conceptualising organisational-level and microfoundational capabilities: an integrated view of born-globals’ internationalisation. International Entrepreneurship and Management Journal, 17(4), 1781-1803. https://doi.org/10.1007/s11365-020-00662-1 DOI: https://doi.org/10.1007/s11365-020-00662-1
Nordman, E. R., & Melén, S. (2008). The impact of different kinds of knowledge for the internationalization process of born globals in the biotech business. Journal of World Business, 43(2), 171-185. https://doi.org/10.1016/j.jwb.2007.11.014 DOI: https://doi.org/10.1016/j.jwb.2007.11.014
Otengei, S. O., Bakunda, G., Ngoma, M., Ntayi, J. M., & Munene, J. C. (2017). Internationalization of African-ethnic restaurants: A qualitative enquiry using the dynamic capabilities perspective. Tourism Management Perspectives, 21, 85-99. https://doi.org/10.1016/j.tmp.2016.12.001 DOI: https://doi.org/10.1016/j.tmp.2016.12.001
Oviatt, B. M., & McDougall, P. P. (1994). Toward a theory of international new ventures. Journal of International Business Studies, 25(1), 45-64. https://doi.org/10.1057/palgrave.jibs.8490193 DOI: https://doi.org/10.1057/palgrave.jibs.8490193
Parente, R. C., Baack, D. W., & Hahn, E. D. (2011). The effect of supply chain integration, modular production, and cultural distance on new product development: A dynamic capabilities approach. Journal of International Management, 17(4), 278-290. https://doi.org/10.1016/j.intman.2011.08.001 DOI: https://doi.org/10.1016/j.intman.2011.08.001
Paul, J., & Rosado-Serrano, A. (2019). Gradual internationalization vs born-global/international new venture models: A review and research agenda. International Marketing Review, 36(6), 830-858. https://doi.org/10.1108/IMR-10-2018-0280 DOI: https://doi.org/10.1108/IMR-10-2018-0280
Peng, M. Y. P., & Lin, K. H. (2021). International networking in dynamic internationalization capability: the moderating role of absorptive capacity. Total Quality Management & Business Excellence, 32(9-10), 1065-1084. https://doi.org/10.1080/14783363.2019.1661239 DOI: https://doi.org/10.1080/14783363.2019.1661239
Pettigrew, A. M. (1990). Longitudinal field research on change: Theory and practice. Organization Science, 1(3), 267-292. DOI: https://doi.org/10.1287/orsc.1.3.267
Prange, C., & Verdier, S. (2011). Dynamic capabilities, internationalization processes and performance. Journal of World Business, 46(1), 126-133. https://doi.org/10.1016/j.jwb.2010.05.024 DOI: https://doi.org/10.1016/j.jwb.2010.05.024
Ratajczak-Mrozek, M. (2015). The importance of locally embedded personal relationships for SME internationalisation processes–from opportunity recognition to company growth. Journal of Entrepreneurship, Management and Innovation, 10(3), 89-108. DOI: https://doi.org/10.7341/20141034
Rennie, M. W. (1993). Born global. The McKinsey Quarterly, 4, 45-53.
Rezvani, M., Lashgari, M., & Farsi, J. Y. (2019). International entrepreneurial alertness in opportunity discovery for market entry. Journal of Research in Marketing and Entrepreneurship, 21(2), 76-102. https://doi.org/10.1108/JRME-01-2018-0003 DOI: https://doi.org/10.1108/JRME-01-2018-0003
Schweizer, R., Vahlne, J. E., & Johanson, J. (2010). Internationalization as an entrepreneurial process. Journal of International Entrepreneurship, 8(4), 343-370. https://doi.org/10.1007/s10843-010-0064-8 DOI: https://doi.org/10.1007/s10843-010-0064-8
Smans, M., Freeman, S., & Thomas, J. (2014). Immigrant entrepreneurs: The identification of foreign market opportunities. International Migration, 52(4), 144-156. https://doi.org/10.1111/imig.12124 DOI: https://doi.org/10.1111/imig.12124
Stake, R. E. (2007). A arte da investigação com estudos de caso. Fundação Gulhenkian.
Strauss, A., & Corbin, J. (1998). Basics of Qualitative Research Techniques. Sage.
Tabares, A., Tavera, J. F., Álvarez Barrera, C. P., & Escobar-Sierra, M. (2023). Impacts of managerial capabilities on perceived international performance: mediating role of international opportunity-driven behavior. European Business Review, 35(1), 23-38. https://doi.org/10.1108/EBR-03-2021-0077 DOI: https://doi.org/10.1108/EBR-03-2021-0077
Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319-1350. https://doi.org/10.1002/smj.640 DOI: https://doi.org/10.1002/smj.640
Teece, D. J. (2014). A dynamic capabilities-based entrepreneurial theory of the multinational enterprise. Journal of International Business Studies, 45(1), 8-37. https://doi.org/10.1057/jibs.2013.54 DOI: https://doi.org/10.1057/jibs.2013.54
Teece, D. J. (2022). The Evolution of the Dynamic Capabilities Framework. In R. Adams, D. Grichnik, A. Pundziene & C. Volkmann (Eds.). Artificiality and Sustainability in Entrepreneurship: Exploring the Unforeseen and Paving the Way to a Sustainable Future. Springer Nature.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z DOI: https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Terán-Yépez, E. (2023). Post-entry decisions in international entrepreneurship and family business: a perspective article. Journal of Family Business Management. https://doi.org/10.1108/JFBM-09-2023-0163 DOI: https://doi.org/10.1108/JFBM-09-2023-0163
Tuomisalo, T. (2019). Emergence of an entrepreneurial opportunity: A case within a Finnish telecommunication international new venture. Journal of International Entrepreneurship, 17(3), 334-354.https://doi.org/10.1007/s10843-019-00247-2 DOI: https://doi.org/10.1007/s10843-019-00247-2
Uner, M. M., Cetin, B., & Cavusgil, S. T. (2020). On the internationalization of Turkish hospital chains: A dynamic capabilities perspective. International Business Review, 29(3), 101693. https://doi.org/10.1016/j.ibusrev.2020.101693 DOI: https://doi.org/10.1016/j.ibusrev.2020.101693
Weerawardena, J., Mort, G. S., & Liesch, P. W. (2019). Capabilities development and deployment activities in born global B-to-B firms for early entry into international markets. Industrial Marketing Management, 78, 122-136. http://dx.doi.org/10.1016/j.indmarman.2017.06.004 DOI: https://doi.org/10.1016/j.indmarman.2017.06.004
Weerawardena, J., Mort, G. S., Liesch, P. W., & Knight, G. (2007). Conceptualizing accelerated internationalization in the born global firm: A dynamic capabilities perspective. Journal of World Business, 42(3), 294-306. https://doi.org/10.1016/j.jwb.2007.04.004 DOI: https://doi.org/10.1016/j.jwb.2007.04.004
Zander, I., McDougall-Covin, P., & Rose, E. L. (2015). Born globals and international business: Evolution of a field of research. Journal of International Business Studies, 46, 27-35. https://doi.org/10.1057/jibs.2014.60 DOI: https://doi.org/10.1057/jibs.2014.60
Zeng, J. (2022). Orchestrating ecosystem resources in a different country: Understanding the integrative capabilities of sharing economy platform multinational corporations. Journal of World Business, 57(6), 101347. https://doi.org/10.1016/j.jwb.2022.101347 DOI: https://doi.org/10.1016/j.jwb.2022.101347
Zhou, C., & Liao, J. (2024). Home country digital finance development and post-entry internationalization speed of emerging market SMEs: Empirical evidence from China. International Review of Financial Analysis, 91, 103016. https://doi.org/10.1016/j.irfa.2023.103016 DOI: https://doi.org/10.1016/j.irfa.2023.103016
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Rennaly Alves da Silva, Marcos André Mendes Primo, Luciene Laranjeira Diniz
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
- The author(s) authorize the publication of the article in the journal;
- The author(s) ensure that the contribution is original and unpublished and is not being evaluated in other journal(s);
- The journal is not responsible for the opinions, ideas and concepts expressed in the texts because they are the sole responsibility of the author(s);
- In case an article will be approved for publication, the author will sign the term of Cession of Copyright to the journal, according to the download form.