Assessing the role of dynamic capabilities to improve competitiveness and internationalization performance of organizations

Abstract

Purpose The purpose of this study is to examine the role of dynamic capabilities for improvement of competitiveness of the organizations through enhancement of internationalization performance. The study would also try to assess if there is any moderating impact of leadership abilities of the entrepreneurs to impact internationalization performance of the organizations. Design/methodology/approach This study has reviewed various kinds of literature related to competitiveness, international marketing, dynamic capabilities, entrepreneurship and leadership support. This study also used a dynamic capability view to develop a research model. This model was validated using the partial least squares structural equation modeling technique to analyze data from 303 respondents from European and Asian organizations. Findings The study found that dynamic capabilities have considerable influence on the competitive international performance of organizations, and entrepreneurs’ leadership ability has a significantly moderator impact on the relationship between dynamic capabilities and international performance of organizations. Research limitations/implications The study uncovers the impacts of dynamic abilities on the competitiveness and internationalization performance of the organizations. This study also provided valuable insights about the importance of entrepreneurial leadership ability for improving the internationalization performance of the organizations. This study also highlighted the significance of investing on improving dynamic abilities of the organizations to improve their internationalization performance as well as their competitiveness. Originality/value This study has contributed to the prevailing literature on entrepreneurship, leadership capability, competitiveness and dynamic capabilities. Few studies have focused on how dynamic capabilities affect the competitiveness and international performance of organizations. Also, studies are scant to understand if the entrepreneur’s leadership ability has any moderating impact on the relationship between an organization’s dynamic capabilities and its international performance. Therefore, this study aims to investigate these gaps.