Conference Agenda

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Session Overview
Session
S05.02I: Coping Mechanisms and Capabilities in Turbulent Times and Environments
Time:
Saturday, 14/Dec/2024:
9:00am - 10:15am

Session Chair: Tamara Galkina, Aalto University School of Business
Location: Otakaari 1, U358

50 people

Interactive Paper Session

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Presentations

Coping with Inter-organizational Knowledge Sharing Uncertainties in International Small Firms: A Resource Dependence Perspective

S. Talukder, W. Barner-Rasmussen

Åbo Akademi University School of Business and Economics, Finland

This longitudinal study applies resource dependence theory to explore how decision-makers in international small firms cope with uncertainty related to knowledge sharing with other firms. International small firms depend on other firms for knowledge that is critical for their survival, and must hence be able to cope with knowledge sharing uncertainty in the inter-organizational relationships with these other firms. Extant research has explored strategies for identifying and dealing with barriers to knowledge sharing and has also shed some light on the sources of knowledge sharing uncertainty. However, less attention has been paid to how knowledge sharing uncertainties are perceived, assessed and coped with. We help fill this research gap by following 19 Finnish international SMEs over a period of 3 years. Our findings indicate that small firm decision-makers simultaneously strive to avoid excessive dependence on external knowledge and try to shape key exchange partners' engagement in knowledge sharing by assessing knowledge sharing gaps, developing alternative knowledge sources, and influencing inter-organizational knowledge sharing relationships. These findings shed new light on inter-organizational knowledge dependence, knowledge sharing uncertainties, and SME decision-makers' role therein.



Unpacking Dynamic Capabilities: The Effect of Sensing, Seizing and Transforming on Firm’s Performance During COVID-19 Pandemic

D. Klishevich, L. Ermolaeva

St. Petersburg University, Russia

This study aim is twofold: 1) to uncover the effect of sensing, seizing, and transforming capabilities on firm’s performance during COVID-19 pandemic; 2) to reveal how internationalization affected firm’s performance during pandemic and whether dynamic capabilities can mitigate this effect.

We collected 204 questionnaires from CEO or senior managers of Russian SMEs operating both domestically and internationally in March-April 2022. We used structural equitation modelling (SEM) method to test the obtained data. The results confirmed our hypothesis on different effects of sensing, seizing, and transforming on firm’s performance during COVID-19 pandemic. Transforming capabilities turned out to be crucially important for firm’s performance, whereas sensing and seizing were insignificant. Nevertheless, all three DC dimensions (sensing, seizing and transforming) showed indirect positive effect on the performance of internationalized firms. We also found that internationalization negatively affects SMEs performance during crisis. The contribution of the study is threefold: first, we contribute to DC studies by uncovering the role of each DC’s microfoundations in managing firm’s performance; second, we explore how internationalization influence on firm performance during COVID-19 pandemic and how DC are able to change this effect; and third, we shed light on scarcely explored Russian context, representing an interesting laboratory for research



The Impact of Multidimensional Capabilities on Firm Performance – a Case-study about an International E-tail SME

A. Safari, E. Rovira Nordman, S. Melén Hånell

Mälardalen University, Sweden

Purpose: To investigate, through a multidimensional approach, how an internationalizing e-tail SME cultivates certain capabilities that enhance its e-commerce and performance.

Design/methodology: The paper is based on longitudinal, single-case data from an internationalizing electronic retail (e-tail) SME in Sweden.

Findings: The findings imply that while capability development, in general, is important for e-tail SMEs, the development of digitalization and marketing capabilities have the most significant impact on overall performance for these kinds of retailers.

Originality: By extending knowledge about how three types of capabilities (internationalization capability, digitalization capability, and marketing capability) can be developed in tandem, this study contributes to international marketing research on how e-tail SMEs can work with capability development to boost their performance.



The Impact of Service Capability and Entrepreneurial Passion on the Relationship between Exploration Strategy and Service Innovation

S. Sayed, M. Dayan

United Arab Emirates University, United Arab Emirates

This study examines the interplay between exploratory strategy, service design capabilities, and service innovation in entrepreneurial start-ups in the UAE, using the Resource-Based View (RBV) and dynamic capability perspectives as the theoretical foundation. The research surveyed 500 startups from the Khalifa Fund and Sheraa databases, achieving 165 valid responses. Findings indicate that exploratory strategy significantly boosts both service innovation and the service design capabilities of founding teams. Furthermore, service design capabilities directly enhance service innovation and mediate the link between exploratory strategy and service innovation. Interestingly, founding team passion does not moderate the direct relationship between exploratory strategy and service innovation. However, lower levels of passion strengthen the relationship between service design capabilities and service innovation, as well as the indirect link from exploratory strategy to service innovation through these capabilities.

The study underscores the importance of investing in service design capabilities through targeted training and collaboration. It also challenges the conventional view on entrepreneurial passion, suggesting an optimal level is crucial for balancing creativity and objective analysis in innovation. Practical implications call for policymakers and incubators to foster exploration and continuous learning environments, enhancing start-ups' innovation potential.



Sustainable Success: Strategies for High-Performing SMEs in Traditional Manufacturing GVCs

J. Pla-Barber1, A. Botella2, A. Pallás Rocafull3

1University of Valencia, Spain; 2University of Valencia, Spain; 3University of Valencia, Spain

This paper, grounded in the Configurational Theory, introduces a model for high-performing small and medium-sized enterprises (SMEs) to effectively address the new environmental challenges in traditional manufacturing Global Value Chains (GVCs). Based on a sample of 246 manufacturing companies, our model emphasizes five key strategic development axes: customization of products and services to meet diverse customer needs; commitment to sustainability through eco-friendly practices; forging strategic partnerships for ongoing knowledge acquisition and innovation; adopting blended manufacturing strategies that balance local and international production for optimal flexibility; and enhancing international commitment by improving distribution channels and market reach. This integrated model serves as both a foundation for systematic empirical investigation and a practical guide for managerial practice. Its dynamic and comprehensive approach provides valuable insights for policymakers and industry stakeholders, aiming to support the growth and development of SMEs in the manufacturing sector amidst evolving global challenges.



Antecedents and Consequences of International Branding Capability in SMEs

H.-H.S. Chang

National Taichung University of Education, Taiwan

The influence of firms’ branding efforts on international business has been well documented. However, conceptualization and operationalization of international branding capability remains neglected, and empirical validation evidencing the effect of branding in SME internationalization remains underexplored. This research serves as a first attempt to develop a conceptualization of international branding capability, in the context of internationalizing SMEs, and explore the factors that drive it, as well as the consequences. Using surveys of a large data set collected from managers of international SMEs in an advanced emerging market, the study empirically verified the effect of international branding capability on entrepreneurial SMEs’ value creation (i.e., brand equity), which thus translates into superior performance. Additionally, international branding capability was found to be influenced by a specific set of international marketing capabilities – international marketing resource orchestration and construction of international market knowledge. This research pioneers study on examining the mechanisms underlying the building of strong brands for SMEs’ international expansion, thus increasing the generalizability of prior study findings focusing on large firms. Senior managers are advised to adopt the parsimoniously-developed scale to assess the effectiveness of their firm’s brand-building capability for business expansion in international markets.



 
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