Capability chains, institutional and environmental changes and internationalization: A causal configurational perspective

In this study we investigate the causal configurations of capability chains under changing institutional and environmental contingencies during internationalization. Building upon the capability hierarchy model, we propose the concept of capability chain. Capability chains are cost optimal causal configurations linking elements within a higher capability group to the corresponding elements in a lower capability group and finally to an outcome. We review a set of 231 empirical articles dealing with dynamic capabilities and internationalization, from 2014 to 2024. We present a set of causal configurations of economically viable, dynamic, replicable and durable capability chains enabling different types of internationalization. Specifically, we present capability chains, needed for (i) early-stage international new venture creation, and (ii) steady state international performance, as well as catering to various contingencies like (iii) institutional differences between developed and emerging economies, and (iv) environmental differences. We expect to contribute to an evolving theory of international dynamic capabilities.