MSMEs' internationalisation processes in a dynamic industry environment: a qualitative cross-national study among emerging economies

PurposeThe success of the family firms cannot be detached from the current paradigm where, within the present economic conditions, economic agents struggle to exploit the existing opportunities and need to take into account the risks associated to the international arena and the innovation processes. The internationalisation and innovation processes may trigger resistance within family business due to their relatively higher difficulty to take risks and to invest in industries outside the scope of their original core business. Innovation and internationalisation processes become relevant strategies for the family firms’ continuity and success. In line with such fact, the aim of this paper is to contribute with insights regarding the processes of innovation and internationalisation within family businesses. In particular, this paper aims to assess the propensity of such firms to apply such strategies, to identify the particular business behaviour and to assess the extent to which the particulars of family firms may constraint or lead to the implementation of innovation policies, and thus its internationalisation.Design/methodology/approachThe data were collected through questionnaires within family business aiming to understand the scope and characteristics of internationalisation and innovation processes within these firms. The 154 replies from such data collection were analysed using different multivariate statistic procedures, although this paper is based on factorial and correlation analysis.FindingsThe analysis of the results shows that there is an association between the processes of innovation and internationalisation within family business. In addition, the results also suggest a typology of firms regarding their innovation and internationalisation strategies and motivations.Research limitations/implicationsThe results of this paper are, to some extent, limited because they did not allow comparing the findings with data from non-family business. However, the authors’ aim was not to distinguish family firms, but rather to characterise them.Practical implicationsThis paper expects to contribute with lessons for the management of family business and to raise awareness of the constraints faced by family business. It is important to highlight that family business performance may be affected by a lower propensity to risk-taking attitudes, by the lack of non-family management and to the necessity of separating the family and the business in the business dimensions that the family limits the business growth.Originality/valueAlthough there is a significant amount of the literature devoted to explore family business, innovation and internationalisation studies, very few draw on the relationship between internationalisation and innovation processes within family business. This paper explores such a relationship within a particular business context – the family dynamics that strongly affect management and business development.

The South African small business sector, particularly the manufacturing industries, such as textile, clothing, and automotive industries, are not considered internationally competitive. This shortcoming is seen in the context of liberalizing and transforming the South African economy, and the threat of foreign competition such as China. This study takes a systems view of the problems that are facing small businesses in South Africa, drawing on historical, theoretical and empirical sources within a proposed framework for small business international learning. The various elements in the framework include international competitiveness challenges facing small businesses, which, the author argues, create tension for survival within small businesses; the limited role of the small business support regime in South Africa; and the role of Foreign Direct Investment through Transnational Corporations (TNCs). Therefore, this study investigates the international learning processes of small businesses and develops a new theoretical model to illustrate and elucidate interventions to strengthen international learning processes of these small businesses. Methodology The manufacturing sector was chosen as the ideal sector for this study since it contributes significantly to the GDP and levels of employment of a country, and is at the receiving end of new production methodologies and technologies and other competition dynamics. This sector, at a small business level, is currently experiencing international competitiveness challenges in South Africa. The methodology followed an initial exploratory, qualitative approach followed by a formal, empirical, quantitative approach. The research questionnaire met the quality criteria as established through content validity, criterion related validity, and reliability criteria. This questionnaire was administered to a sample of 300 out of a population of 800 manufacturing small firms in Durban, using an unrestricted random probability sampling method. A total of 255 completed questionnaires were returned, and the results were expressed at the 95% confidence level with a confidence interval of 0.05. Results and Discussions From the correlation analysis of the level of importance and extent of implementation of international learning processes, four international learning processes, whose implementation can be enhanced by an improvement in the importance of international competitiveness challenges and support, were extracted. These international learning processes include increased learning activities on management, sales and marketing, finance, and also the image of small businesses. Through the consolidation of the results of the correlation analysis, a theoretical model for the identification and development of international learning processes was created. Conclusion From the small business practice and policy point of view, this study s findings suggest that the international learning processes of small businesses confronted by international competitiveness challenges in transforming developing economies can be strengthened by applying the theoretical model developed in this study. From the government, TNCs, and small businesses perspective, this study s findings also suggest that the establishment of linkage programmes and enhancement of learning activities, which revolve around the identified international learning processes as established in the theoretical model, will enable the attainment of international competitiveness of small businesses. This study, therefore, proposes the implementation, in the short-term, of information and linkage support at sector level that addresses the enhancement of the identified international learning processes; and the implementation, in the longterm, of a grand-scale small businesses and TNCs linkage programme in line with the premise provided in the theoretical model.

PurposeTaking into account the resource-based view and the dynamic capabilities theory, the main aim of this research is to analyse how the intensification of the internationalisation process entails a solution for the problems generated by an economic crisis in the national market. To do so, we establish two specific goals. The first is to find out the mediator value of the dynamic marketing capability in the relation between the strategy of increasing markets and performance. The second is to determine if there exist differences in this relation between firms of incremental internationalisation and firms of early internationalisation, called international new ventures (INV).Design/methodology/approachThe study provides information on these problems via testing hypotheses of a conceptual model, which uses a sample of 145 Spanish export firms. The data analysis employs a structural equation modelling (SEM) through partial least squares (PLS) as a statistical instrument.FindingsThe results lead to two main conclusions: (1) in times of economic crisis, the dynamic marketing capability plays a mediator role between the increase of the number of international markets served and the international and national results; (2) the dynamic marketing capabilities bring about learning effects in the internationalisation process, which affect incremental firms and INV differently.Originality/valueThis work explores, in times of crisis, how internationalisation becomes a way out for firms to increase the levels of demand and improve their general performance. Furthermore, it also analyses the mediator role of the dynamic marketing capability in the relation between the increase of the level of internationalisation and the firm performance. In this relation, it establishes that there are significant differences in the results obtained between incremental internationalisation firms and INV, determining the notable strategic differences between the two management models when facing periods of economic recession.

The interplay between knowledge development and commitments is the driving force in the Uppsala internationalization process model. We perform a qualitative thematic analysis of longitudinal data, exploring how relationship knowledge development in supplier-customer relationships leads to commitments through opportunity identification. The results validate our claim that relationship knowledge development as a dynamic capability can influence the focal organization’s ability to over time, under changing needs and contexts, harness operational capabilities that lead to at least satisfactory performance. Judging from results, the relationship knowledge development process produces a change in commitments, thereby constituting a critical micro-foundation for the internationalization and evolution process as explained in the Uppsala model.

Purpose This paper systematically reviews and synthesizes how digital transformation (DT) shapes the internationalization process (IP) of firms. It develops an integrative, theory-informed framework that links antecedents, barriers, capabilities and outcomes to digital business models (e.g., platform, subscription, freemium). The review addresses fragmentation across international business, strategy, and information systems, clarifying the mechanisms through which DT enables cross-border entry, scaling and performance. It also delineates research gaps and offers a future agenda and decision-relevant guidance for managers. Design/methodology/approach We conducted a systematic literature review of Scopus-indexed, peer-reviewed journals, applying qualitative thematic analysis to 31 articles published between 1973 and 2025 across the DT and IP literature. Findings This review identifies important dominant themes that structure the field: antecedents (external and internal), processes that include barriers (technological, organizational and institutional), capabilities, business models (platform, subscription and freemium) and outcomes (market entry, performance and competitiveness), which shape the internationalization process. Originality/value The study bridges fragmented research streams on DT and IP, offering a theoretically grounded framework that integrates organizational, institutional and resource-based perspectives. We also propose a future research agenda based on dynamic capabilities, institutional voids and sector-specific transformation.

PurposeThis paper aims to determine the relationship between dynamic marketing capabilities (DMCs) and the integration of distribution channels of exporting companies from Latin American (LATAM) countries and how this relationship will impact the international development of a company.Design/methodology/approachThis qualitative study uses the explanatory multiple case approach of Yin (2011) to test the research questions, revise existing theories and establish causal relationships from semi-structured interviews that were applied to 15 Peruvian and Colombian companies. To analyze qualitative data and ensure credibility, the authors applied six stages of Sinkovics and Alfoldi’s (2012) methodology. For analysis, computer-based qualitative software was used.FindingsThe study reveals the following: a set of specific DMCs that effectively help agro-food companies generate synergy with their intermediaries to launch their first international ventures; a better understanding of how the market orientation as a DMC is, rather than a multi-dimensional organization which mediates other marketing processes; the impact of DMCs in channel integration that changes with respect to agents and distributors. Producers and distributors developed networking, market adaptation and innovation capabilities. At the same time, agents also developed market orientation capabilities to provide relevant product information, manage transactions and fulfill orders without regard to market adaptation capabilities.Research limitations/implicationsQualitative methodology was applied, limiting the generalization of the findings. The authors also emphasized the initial stages of internationalization without considering other advanced processes that could be useful for larger LATAM companies, which operate in different foreign countries and manage multiple channels. As a result, this study lays the foundation for establishing a model that will enhance a quantitative measurement to support the findings.Practical implicationsThis study illustrates specific marketing techniques that are useful to better identify and coordinate intermediaries, especially agents and distributors to ease their internationalization processes. The research also provides a framework for marketing managers to leverage the DMCs developed by the different actors of the distribution channel, as well as, obtaining positive outcomes in communication, information on products and services, transactions and customer service functions. Finally, managers and professionals can find a methodology to evaluate how DMCs can be developed to optimize their internationalization processes through the integration of the main channel functions. This will broaden their vision on the usefulness and scalability of this type of dynamic capabilities in key business processes for the generation and sustainability of competitive advantages.Social implicationsIf producers identify DMCs, they will promote ethical business practices that may reduce their vulnerability and risk with more experienced international intermediaries. This leads to favoring the socio-economic equity of the territories with traditional economies in which they operate.Originality/valueThe study provides a set of DMCs that influence the functions of distribution channels and favors international processes in small and medium enterprises which then offer a better understanding of the definition and applicability of this construct in the agro-food sector in LATAM. This study also gives a structural perspective to determine which functions of the distribution channel should be integrated and how depending on the type of intermediary (agents and distributors).

Globalization and integration processes specify the objectivity of coordinating actions in the implementation of certain international processes, joining efforts in solving the problems facing humanity, ensuring economic growth on an intensive basis. In such conditions, the main role in the formation of effective business processes and the production of competitive products is played by the development and implementation of innovations. The formation of innovative potential and the development of international innovative activity directly depend on the successfully developed policy of the states to promote the development and spread of innovations. Joining the efforts of countries, especially those integrated in the field of innovation, plays a particularly important role in solving modern problems of an international scale, caused by the challenges of Industry 5.0, focused on environmental, social and economic factors of managerial influence on international innovation processes. That is, the study of approaches to the formation of international innovation policy meets the requirements of the time, is relevant and necessary. The purpose of the article is to study approaches to the formation of international innovation policy and to develop proposals for improving the strategic management of international innovative activity. The task of the article is to study the essence, purpose and conceptual foundations of the formation of international innovation policy at all levels of its organization. The article defines the concept of "international innovation policy" and its role in promoting the development of international cooperation in the field of science and technology, increasing international innovative activity to ensure competitiveness and development of economic systems at various organizational levels. Conceptual basics of formation and structural components of international innovation policy are defined. A conceptual model of international innovation policy has been developed, which includes elements of global, international, national, entrepreneurial and interpersonal integration and competition. The constituent components of the corporate innovation policy were formed and a model of the sequence of formation of innovative products was developed. The relevance of the formation of an anthropological innovation policy (nanolevel) is substantiated, which will allow to study the general patterns of the relationship between man and the natural environment, the influence of socio-economic and environmental factors on the functioning of the human body, to carry out purposeful management of human health, its reproduction and restoration, and the formation of relevant innovations. It is advisable to direct further research to the study of the problems of international innovation policy formation caused by the challenges of Industry 5.0, oriented to ESG-activity (environment, social sphere and management), that is, to the environmental, social and economic factors of managerial influence on international innovation processes.

What competencies do companies need to develop in order to internationalise successfully? In this paper our focus is on the dynamic capabilities and, particularly, international business competence of the Russian subsidiaries of Finnish multinational corporations (MNCs) operating in the rapidly changing market. By analysing the internationalisation process of two Finnish MNCs, and especially their (small) subsidiaries' internationalisation process in Russia, we seek to illustrate the international business competence development of subsidiaries. Small and medium-sized enterprises need international business competence in order to handle export activities or internationalise. Here we explore how the development of international business competence in the subsidiaries of MNCs occurs and to what extent the subsidiaries should possess international business competence in order to operate successfully. Our results indicate that the underlying dynamic is that MNC subsidiaries derive advantages from their local presence and local employees, advantages unique to the MNC subsidiary environment, advantages that facilitate the high level of international business competence. Our main contribution is to bring out the interplay between the parent company and the small subsidiary in international business competence literature. Furthermore, we extend the knowledge on the internationalisation of MNCs from developed economies entering Russia.

In this paper, we utilize the dynamic capabilities framework to investigate how firms expand internationally. Using the case study methodology, we analyze four middle-market firms operating in similar industries but making different internationalization choices. Through theoretical and literal replications, our results provide some support to two propositions. First, each type of dynamic capabilities is associated with some (but not all) specific choices (why, when, where, what, and how) for a firm’s internationalization process. Second, the outcomes of a firm’s internationalization process are contingent on the combination of the types of dynamic capabilities mastered by the firm.

Purpose– The purpose of this paper is, first, to examine the factors that impede SMEs in their internationalization process; second, to analyse the effectiveness of the government support and development programs of the SMEs; and finally, to examine the networking efforts by Malaysian SMEs at the industrial level.Design/methodology/approach– This study is descriptive in nature. Secondary data are the main source of data collection. Data were obtained from reliable and authoritative sources such as SME Corp, government agency publications, newspapers, international business journals and other related periodicals. A meta-analysis technique was used in this study where results from previous and current studies on similar topics were critically reviewed.Findings– This study found that Malaysian SMEs faced external and internal impediments in their efforts of expanding their operations internationally. Externally there is a lack of skilled workers available in the domestic labour market; increased competition in the domestic market due to the regional economic agreement among neighbouring countries; lack of physical infrastructure allocated to the SMEs; and government assistance offered does not reach SMEs due to high level of bureaucracy and poor communication. Despite the impediments encountered by SMEs, they still obtained benefits from various policies, programmes and incentives provided by the government.Research limitations/implications– Meta-analysis conducted on the challenges of Malaysian SMEs in its internationalization process might be inadequate as it is limited to the availability of the current and previous studies. Additionally, quantitative data obtained from the secondary source was not raw data thus statistical testing could not be further conducted and analysed. Data obtained from the local authoritative sources detected different problems and challenges from those found in previous and current studies.Practical implications– This study indicates several implications for managers and policy makers. Malaysian SMEs need to evaluate its capability before embarking into new geographic locations and engage internationally. With diverse programmes offered by the government, SMEs have a wide range of choice when involving the whole value chain activities, either through marketing their products in the market or manufacturing and supplying the products to large firms or MNCs. Involving international markets is not only about expanding the market but also for seeking lower costs and resources as well as operating with management efficiency.Originality/value– This study contributes to the body of knowledge of international business and entrepreneurship literature in three ways. First, research on SMEs from emerging countries involved in international market tend to be limited in literature, most of them are concentrated in the developed countries; thus this study would extend the understanding about the internationalization process among SMEs. Second, this study focused on the impediments of SMEs in their implementation strategies which represent the practicality of the phenomenon thus bridging the gap between theories and realities. Third, this study brings to light the significance of networking relationships in international business and entrepreneurship primarily among SMEs due to their size limitations. Finally, the meta-analysis technique which is seldom used in the international business and entrepreneurial literature is adopted in this study. This technique provides another approach for the researchers to examine and address the issues in the field.

This study develops and confirms a model that examines the relationship between Big Data Analytics Capabilities (BDAC), Blockchain Technology (BT), and Internationalization Process (IP). It also requires various efforts to explore how Dynamic Accounting Information System Capability (DAISC) mediates the interconnections between BDAC, BT, and IP. This study focuses on small and medium enterprises (SMEs) in Vietnam, which are widely recognized as crucial to the Vietnamese economy. The current research utilized the hypothetico-deductive method. The proposed model's hypothesized linkages were based on a comprehensive evaluation of relevant literature and investigations. The statistics database was created using a paper-and-pencil survey distributed to 612 accountants in SMEs in southern Vietnam utilizing the convenient and snowball sampling technique. A covariance-based structural equation modelling approach was used to assess the measurement and structural models in this research due to its ability to offer a strong foundation for analyzing intricate linkages within a research framework. The outcome confirmed the significant and positive relationships between BDAC, BT, and IP. Concurrently, these relationships were partially influenced by DAISC. The practitioners would greatly benefit from detailed insights on the findings, as they would provide guidance on how to identify and take advantage of the growth opportunities afforded by digital technology. Moreover, the observations could provide policymakers with new insights on necessary policy measures to support the application of digital technologies and encourage the implementation of a dynamic accounting information system, which could result in significant benefits in the future.

The objective of the article is to research the dynamic capacities developed and used by WEG in its internationalization process and to explain how these capacities help the company defends and supports competitive advantage. The article presents an exploratory study of the internationalization process of WEG in Argentina and China. This article has as analysis approach the dynamic capacities, contributes to the literature of international management in two aspects. First, it adds the analytical look of the internationalization based on dynamic capacities that are still well restricted. Second, when working the dynamic capacities as central element of the analysis of the internationalization process, it proposes one framework of integrative analysis of the economic and behavioral theories that are used to explain the process of companies’ internationalization, although they are dealt independently and sometimes antagonistic way. The result shows as the dynamic capacities are articulated in the case of WEG in its process of internationalization for Argentina and the subsequent movement for China. The developed dynamic capacities in Argentina were acquired for the Brazilian headquarter and could have been applied in the process of internationalization for China. However, a more complex organizational structure cannot be identified where the inter-subsidiary relationships could share dynamic capacities as proposed in framework.Key words: Dynamic capabilities. Competences. Internationalization. Brazilian multinationals.

Purpose The COVID-19 pandemic and global economic downturn have created new challenges for enterprise internationalization, while digital technologies offer new opportunities. Amid this, alleviating insufficient embeddedness and integrating into local networks remain critical issues for enterprises. This study aims to examine how insufficient embeddedness affects internationalization performance, and to explore the mediating role of boundary spanning, as well as the moderating effects of agility and long-term orientation. Methodology/Design Data were collected through 400 questionnaires. Empirical analyses were conducted to test the hypothesized relationships among embeddedness, boundary spanning, agility, long-term orientation, and internationalization performance. Findings The results show that insufficient embeddedness negatively affects internationalization performance. Boundary spanning plays a crucial mediating role in this relationship. Agility positively moderates the relationship between embeddedness and boundary spanning by serving as the dynamic capability to rapidly reconfigure information exchange in the digital context. Furthermore, long-term orientation mitigates the negative impact of insufficient embeddedness, thereby improving boundary spanning. Research implications This study extends the internationalization literature by integrating the concepts of embeddedness, boundary spanning, agility, and long-term orientation into a single framework. It reveals how dynamic capabilities (agility) and temporal orientation (long-term orientation) can compensate for the lack of local embeddedness, offering new insights into B2B firms’ internationalization processes under digital transformation. Practical implications For B2B managers, the findings suggest that when facing insufficient local embeddedness, firms should actively develop boundary-spanning activities. Investing in digital agility enables faster information reconfiguration and adaptation. Moreover, a long-term orientation helps reduce the harmful effects of weak embeddedness. These strategies collectively enhance internationalization performance in the post-pandemic digital economy. Originality/Value Unlike prior studies that focus primarily on the positive effects of embeddedness, this study examines the negative impact of insufficient embeddedness. It identifies boundary spanning as a key mediator, and uniquely introduces agility and longterm orientation as moderators that counteract embeddedness deficits.

Dynamic capabilities are arguably of more value in the internationalization process, particularly of multinational companies (MNCs) that operate in highly dynamic international markets. Yet there is a scarcity of research on the nature of dynamic capabilities in such highly relevant contexts. This exploratory study presents observations of dynamic capabilities of MNCs operating in ten tightly-defined high-velocity industries of China that shed light on the nature of the concept. The findings suggest that (1) dynamic capabilities of MNCs in high-velocity markets are analytic, strategically planned high-frequency processes and routines, (2) they are highly complicated, and (3) they rely extensively on combined knowledge derived from global and local knowledge. They are likely influenced by diverse sources of environmental velocity and the degree of the MNC's ownership advantages. The complexity and sophistication observed have led us to propose a way to conceptualize dynamic capabilities of MNCs in high-velocity markets.

The key aspects of today’s economic climate are intensified competitiveness and fast-changing global markets. In order to stay competitive, family companies need to respond to these developments and more frequently seek foreign expansion themselves. To understand how organisations should respond to changes in the market to retain a competitive edge, the idea of knowledge management and dynamic capabilities has indeed been developed. Such an environmental transition could be the internationalisation of a family business. The purpose of this research is to examine, through the lens of knowledge management and dynamic capabilities, the internationalisation of family companies. A qualitative single case study model of a family business that has been through an international expansion has been considered, collecting evidence through semi-structured qualitative interviews with three of the company’s key individuals. The study reveals that in the internationalisation process, there are many skills that assist family companies. Sensing technologies include screening capabilities for networks and industries and helping family companies identify new prospects in international markets. Seizing skills provide decision-making and management capabilities and change the capital base to take advantage of the possibilities previously sensed. Finally, family businesses should constantly reconfigure their tools with transforming skills, which consist of entrepreneurial knowledge capabilities, to optimise processes and frameworks in the current international setting. Different facets of family life influence the development of these complex skills.