Toward the theory of temporary competitive advantage in internationalization

Abstract

Building on the dynamic resource-based view, this paper suggests that increasing market dynamism and continued resource evolution contribute to the development of temporary competitive advantages utilized in the internationalization of high-technology firms. All competitive advantages needed for internationalization can first be seen as temporary by nature, and it is the outcome of managerial selection and competition, conditioned by the determinants of market dynamism and resource evolution that some resources and advantages may become sustainable. Using a case study approach, this paper suggests that sustainable competitive advantages for internationalization emerge from the temporary advantages through a life cycle as the effects of market dynamism and resource evolution decrease, or their determinants lose relevance in the international markets. The paper aims to contribute to the theoretical discussion concerning the nature and consequences of managing temporary competitive advantages and the internationalization processes.