Configuring international entrepreneurial orientation and dynamic internationalization capability to predict international performance

Abstract

In recent years, the dynamics of international business have changed. This has largely been attributed to uncertainties caused by the COVID-19 pandemic and global trends towards individualistic behaviours. To remain competitive, international entrepreneurial firms (IEFs) renew their behaviours and reconfigure their capabilities. However, scholars have hitherto not uncovered the configurational interplay connecting behaviours and capabilities between the pre-and-post-COVID periods. Drawing on the configurational perspective of dynamic capability theory, we explored the configurational specificities of dynamic internationalisation capability and an international entrepreneurial orientation (IEO) as the behavioural aspect of IEFs. Adopting a longitudinal approach, we applied fsQCA to data drawn from Malaysia. Results show that whereas, in the pre-COVID period, IEFs exhibited an IEO along with threshold and disruption capabilities, in the wake of the pandemic, they are gingerly manifesting an IEO with an overwhelming priority on value-adding and consolidation capabilities suited to weather crises and secure international performance.