This study aims to examine, which dynamic capabilities (DC) are used by companies from post-socialist emerging markets (PSEM) during their internationalization.
The paper uses a DC perspective together with the new internalization theory to examine the internationalization of companies from PSEM. It uses qualitative data from the interviews with 7 PSEM experts and the 16 cases of the multinational companies from PSEM.
PSEM companies develop particular DC while expanding abroad whereby innovation capability helps them internationalize beyond neighboring countries and overcome the stigma of being less competitive than advanced economies. Adaptability is the DC that helps private companies, which differ from state-owned PSEM firms, overcome the uncertainties of the changing environment. Innovation capability and absorptive capability help PSEM firms surmount their geographical position. Alliancing activity is the DC that is used at the initial stages of internationalization to boost technological development.
The study contributes to the body of knowledge on the internationalization of companies from transition economies and sheds light on the nature of DC for the successful international expansion of PSEM firms. It attempts to address the lack of empirical studies on DC. Methodological value is in the combination of case studies’ analysis and interviews with experts, which adds novelty to the studied subject.
The authors recognize the contribution of Andreja Jaklič, Kalman Kalotay, Áron Perényi, Sheila M. Puffer, Lukasz Puślecki, Matevž Rašković, Arnold Shuh for their contribution as of international business and management scholars and experts. The authors also express their gratitude to Jean-François Hennart for his valuable comments and suggestions while reviewing the earlier version of this paper.
Panibratov, A. and Klishevich, D. (2020), "Dynamic capabilities during the internationalization of MNCs from post-socialist emerging markets", Multinational Business Review, Vol. 28 No. 3, pp. 307-331. https://doi.org/10.1108/MBR-06-2019-0052
Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited