Toward a dynamic capabilities’ diffusion model for international business headway of SMEs: evidence from the metallurgic and metal-mechanic (MMI) sectors

Abstract

Purpose

This paper aims to explore the characteristics of capability exchange within internationalizing small and medium enterprises (SMEs) of the Portuguese metallurgic and metal-mechanic sectors.

Design/methodology/approach

Multiple case research instrumentalizes a (manifest) content analysis based upon qualitative data gathered from the interviewing of the strategic apex of four multinational enterprises, codified in the light of the well-known Weber protocol.

Findings

The results uncover the existence of a multi-diffusional approach with a bi-directional regime of transferability, where reciprocal transference is non-simultaneous. Operational rigidities are asserted to be stifling the diffusion of capabilities across subsidiaries and hindering higher economies of learning.

Research limitations/implications

The current paradigm of international capabilization of the sector requires substantial enhancements in its design for the benefit of the firm’s international competitiveness, growth and wealth.

Originality/value

Organizational capabilities are a determinant of competitiveness. Hitherto, the phenomena of (capabilities) mobility and transferability are still acknowledged as a clear gap. This study opens, therefore, avenues on international capabilization in relation to the modeling and testing of global dynamic capabilities and its replicability across industries.

Citation

Abrantes, B.F., Preto, M.T. and António, N. (2022), "Toward a dynamic capabilities’ diffusion model for international business headway of SMEs: evidence from the metallurgic and metal-mechanic (MMI) sectors", Review of International Business and Strategy, Vol. 32 No. 2, pp. 204-227. https://doi.org/10.1108/RIBS-10-2020-0125