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http://dx.doi.org/10.13106/jafeb.2020.vol7.no9.527

Dynamic Capabilities, Environmental Dynamism and Small and Medium Enterprises' Internationalization Level  

ALI, Hazem (School of Business Administration, Zhejiang Gongshang University)
HAO, Yunhong (School of Business Administration, Zhejiang Gongshang University)
AIJUAN, Chen (UCSI University, School of Business and Information Science)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.9, 2020 , pp. 527-536 More about this Journal
Abstract
International business research presents a broad consensus on the importance of dynamic capabilities in the internationalization of SMEs. However, there is a lack of research on assessing the impact of dynamic capabilities and the level of SMEs' internationalization operating in a turbulent and dynamic business environment. This study examines the impact of environmental dynamism and three sets of dynamic capabilities, namely, sensing, seizing, and reconfiguring capabilities on internationalized SMEs' geographic scope. In addition, this research examines the association between internationalized SMEs' characteristics: SME's age, size, and SME owner/manager's international experience and SMEs' geographic scope. This study used a quantitative research and employed survey questionnaires to collect data from 305 internationalized Malaysian manufacturing SMEs. Anova tests and Chi Square tests were employed to analyze data collected from respondents using SPSS. Research findings revealed that environmental dynamism and dynamic capabilities have a significant impact on internationalized SMEs' geographic scope, however, none of the internationalized SMEs' characteristics had a significant relationship with their geographic scope. The result of this research suggest internationalized SMEs owner/managers need to possess sensing, seizing and reconfiguring capabilities, and monitor business environmental dynamism to increase their geographic scope. This paper ends with drawing a set of concluding remarks and recommendations.
Keywords
Dynamic Capabilities; Environmental Dynamism; Level of Internationalization; SMEs; Malaysia;
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