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.

Business experience or Financial Literacy? Which one is better for opportunity recognition and superior performance?

“…We confirmed that opportunity recognition significantly contributes to SMEs' performance, which is consistent with Hulbert, Gilmore, & Carson () who revealed that entrepreneurs recognize new opportunities for the performance to enhance their profitability. Similarly, Mostafiz et al () also claimed that recognition of new opportunities is very crucial for SMEs' performance due to lack of resources and capabilities.…”

“…Opportunity recognition skills significantly enable entrepreneurs to grow their ventures rapidly (Hulbert, Gilmore & Carson, ). Those managers who have the ability to detect opportunity can enjoy high profitability in the dynamic markets (Mostafiz, Sambasivan, & Goh, ). Therefore,…”

International Entrepreneurship: An Entrepreneurial Behavior Oriented to the Pursuit of International Opportunities

“…Regarding nonfinancial performances, other studies found intangible and immaterial benefits at the individual level and the firm level [2]. At the individual level, the international opportunities process generally enables individuals to expand their cognitive schemas and enhance heuristic decisions to face uncertainty [21,128]. As such, individuals address international market uncertainties with better perceptions of self-efficacy and perceived-desirability and they are equipped with a greater entrepreneurial behavior [87] characterized by high-risk propensity [43], personal proactiveness and commitment [26] that elevates motivation and willingness to face and tolerate uncertainty [21,51].…”

Conceptualizing recourses as antecedents to the economic performance of family-based microenterprise – the moderating role of competencies

“…Mohamad and Sidek (2013) stated that business performance is typically related to the resource-based view (RBV) theory. The RBV of the firm has been frequently utilized in literature over the past 20 years to understand the relationship between a business unit's resources/capabilities and its performance or profitability (Mostafiz, Sambasivan and Goh, 2019b). RBV states that business performance is achieved when the firm has valuable resources and capabilities available as a source of sustainable competitive advantages (Mahoney, 1995).…”