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Dynamic capabilities, internationalization processes and performance

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  • Prange, Christiane
  • Verdier, Sylvie
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    Abstract

    Strategies of internationalization have long been the focus of international business and global strategy research. While the major theories - process theory and new venture theory - have substantially contributed to our understanding of internationalization processes, they have not yet fully explained differences in firms' growth and survival rates. Adopting a dynamic capability perspective, we argue that there are two opposing classes of explorative and exploitative capabilities differentially linked to output variables. We introduce the notion of third-order capabilities to balance trade-offs and maximize internationalization performance. A model with some testable propositions is developed which prepares the ground for future empirical research.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 46 (2011)
    Issue (Month): 1 (January)
    Pages: 126-133

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    Handle: RePEc:eee:worbus:v:46:y:2011:i:1:p:126-133

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    Related research

    Keywords: Dynamic capabilities Internationalization Exploitation Exploration Growth Survival;

    References

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    Cited by:
    1. Lin, Yini & Wu, Lei-Yu, 2014. "Exploring the role of dynamic capabilities in firm performance under the resource-based view framework," Journal of Business Research, Elsevier, vol. 67(3), pages 407-413.
    2. Waleed Omri & Audrey Becuwe, 2014. "Managerial characteristics and entrepreneurial internationalization: A study of Tunisian SMEs," Journal of International Entrepreneurship, Springer, vol. 12(1), pages 8-42, March.
    3. Denicolai, Stefano & Zucchella, Antonella & Strange, Roger, 2014. "Knowledge assets and firm international performance," International Business Review, Elsevier, vol. 23(1), pages 55-62.
    4. Christian Keen & Yuanyuan Wu, 2011. "An ambidextrous learning model for the internationalization of firms from emerging economies," Journal of International Entrepreneurship, Springer, vol. 9(4), pages 316-339, December.
    5. Stephanie Fernhaber, 2013. "Untangling the relationship between new venture internationalization and performance," Journal of International Entrepreneurship, Springer, vol. 11(3), pages 220-242, September.
    6. Hsu, Chia-Wen & Lien, Yung-Chih & Chen, Homin, 2013. "International ambidexterity and firm performance in small emerging economies," Journal of World Business, Elsevier, vol. 48(1), pages 58-67.
    7. Villar, Cristina & Alegre, Joaquín & Pla-Barber, José, 2014. "Exploring the role of knowledge management practices on exports: A dynamic capabilities view," International Business Review, Elsevier, vol. 23(1), pages 38-44.

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