Impacts of dynamic managerial capability and international opportunity identification on firm performance

Abstract

Purpose

This paper aims to investigate the antecedents and outcomes of international opportunity identification (IOI) in export-manufacturing firms. The fundamental question addressed in this research is: How does dynamic managerial capability (DMC) of entrepreneurs contribute to IOI and success of the firms?

Design/methodology/approach

The research model was tested through structural equation modeling among the readymade garment manufacturing firms in the least developed country, Bangladesh. A survey was conducted with a random sampling approach and responses were collected from 390 firms.

Findings

The salient findings are: DMC has direct and indirect impacts through IOI on financial and non-financial performance; IOI mediates the relationship between managerial social capital and non-financial performance and between managerial cognition and non-financial performance; IOI has a negative relationship with the financial performance of the firms; and scope of accelerated internationalization positively moderates the relationship between IOI and financial performance of firms.

Originality/value

This paper notably shows that DMC of export-manufacturing entrepreneurs leads to the identification of the right kind of opportunities, which, in turn, generate better performance. It is advantageous for this type of firm to operate a business in multiple countries.

Citation

Mostafiz, M.I., Sambasivan, M. and Goh, S.K. (2019), "Impacts of dynamic managerial capability and international opportunity identification on firm performance", Multinational Business Review, Vol. 27 No. 4, pp. 339-363. https://doi.org/10.1108/MBR-09-2018-0061