Unlocking international entrepreneurial opportunities: The impact of dynamic capabilities on creation and discovery

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shi_jwb_2026.pdf (1.16 MB)

Date

2026

Authors

Shi, Linda Hui
Danis, Wade M.

Journal Title

Journal ISSN

Volume Title

Publisher

Journal of World Business

Abstract

This study theorizes and empirically validates two international opportunity recognition modes: creation and discovery. It examines how internationalizing small- and medium-sized enterprises (SMEs) leverage international dynamic capabilities to engage in these modes and analyzes their impact on international performance. It finds that the propensity of an internationalizing SME to adopt a specific mode whether creation or discovery is influenced by specific organizational-level international dynamic capabilities (intelligence acquisition, intercountry coordination, reconfiguration). The strength of these relationships is moderated by industry globalization and cultural distance. Furthermore, the interaction between the two opportunity recognition modes reveals a significant negative effect. This interaction suggests that when internationalizing SMEs simultaneously engage in both modes, the effectiveness of each is diminished, leading to lower international performance outcomes. We use multi-informant, cross-industry data collected from 303 internationalizing SMEs in China and Tunisia and empirically test our model using structural equation modeling. This research contributes to the literature on international business and entrepreneurship by offering a more comprehensive understanding of the interplay between international dynamic capabilities, international opportunity recognition, and international performance, emphasizing the strategic trade-offs involved in SME internationalization.

Description

Keywords

international entrepreneurship, SME internationalization, international opportunity recognition, creation, discovery, dynamic capabilities

Citation

Shi, L. H., & Danis, W. M. (2026). Unlocking international entrepreneurial opportunities: The impact of dynamic capabilities on creation and discovery. Journal of World Business : JWB, 61(3), Article 101723. https://doi.org/10.1016/j.jwb.2026.101723

URI

https://doi.org/10.1016/j.jwb.2026.101723
 https://hdl.handle.net/1828/24005

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Faculty and Staff Publications
 
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