Dynamic capabilities of emerging market multinational enterprises and the Uppsala model

Abstract

In this paper, we extend the existing understanding of the Uppsala model to explain a dynamic evolution. We adapt Teece’s distinction between operational and dynamic capabilities to build a theory that explains the characteristics of emerging multinational enterprises’ (EMBEs) internationalization process. Arguing both theoretically and empirically from the study of the Chinese electrical appliance company Gree, Ltd., we submit that the two sub-processes of dynamic capabilities—knowledge development and commitment—create continuous opportunity discoveries and development. Through these processes, we can garner a deeper understanding of EMBEs’ leading to dynamic capabilities that allow for the development of firm-specific advantages from which a radical internationalization process is achieved.