Small and medium-sized enterprises (SMEs) are the backbone of the economy; therefore, their internationalization has been a considerable concern for international business (IB) scholars.Particularly, for those economies such as Sweden with small local markets, internationalization of SMEs could be fundamental. The firm-specific advantages (FSAs), including what the firm has and does, are crucial for SMEs to overcome in the face of their numerous different obstacles including liability of smallness (LOS), liability of newness (LON) and liability of foreignness (LOF).Examining the extant literature on the evolution of IB theories indicates that over time, IB scholars have been reaching to dynamic-based FSAs (what the firm does) as the source of developing and protecting sustainable competitive advantages (SCA) across national borders in a changing business environment. Recently, the leading IB researchers have also argued that the nature of the dynamic-based FSAs could be similar to dynamic capabilities. But, when it comes to determining specific component factors of the dynamic-based FSAs (as dynamic capabilities), there has been little agreement between IB researchers. In other words, the room of the dynamic capabilities is still dark. In this respect, shedding light into this room, particularly in the area of IB studies, is crucial. In addition, after determining the component factors of the dynamic-based FSAs, it is also critical to know the likely relationships between the identified component factors as well as their impact on the SMEs' international performance (IP) as an important outcome of the internationalization. This means that there is a potential theoretical gap associated with the conceptualization of the component factors of the dynamic-based FSAs on one hand, and a potential empirical gap on the other. Given both theoretical and empirical research gaps, the purpose of this study is to examine, from a theoretical perspective, the nature of the dynamic- Further analysis showed that ACAP, as an endogenous latent variable, additionally has a positive indirect association with SMEs' international performance (IP). Moreover, the results also indicate that innovative capability (IC) is directly and positively affected by ACAP (the innovating-by-learning effect). It was also empirically revealed that ACAP is a very strong predictor for networking capability (NC), which is labeled as the networking-by-learning effect.Another major finding was that in internationalized SMEs, NC is strongly, directly and positively affected by IC; this effect also is termed as the networking-by-innovating effect. The
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SammanfattningMindre och medelstora företag (SME-företag) utgör ryggraden i ett lands ekonomi; därför har SME-företagens internationalisering varit en mycket viktig frågeställning för forskare inom internationellt företagande. Speciellt för de ekonomier, som likt Sverige har en liten hemmamarknad, kan internationaliseringen av SME-företag vara av fundamental betydelse. De företagsspecifika fördelarn...