The Role of Dynamic Capabilities in Export Performance of Firms from Emerging Economies

Dissatat Prasertsakul

Abstract


Increased globalisation has led to a great number of firms looking for opportunities abroad, and exporting is the
most common form of entry mechanism. The purpose of this study is thus to investigate the impact of dynamic
capabilities on the performance of Thai exporting firms. The study follows quantitative research design using
survey method with statistical treatment. Given the extant definitions of dynamic capabilities, contextual
ambidexterity, an ability of the organization to pursue alignment and adaptation simultaneously, was proposed as
dynamic capability in this study. Structured questionnaires were collected from key informants of Thai firms
engaging in exporting (n = 102). Bivariate regression analysis was employed to test the hypothesis, whilst cluster
analysis and one-way analysis of variance were used to explore the results. The findings indicate that dynamic
capability of contextual ambidexterity significantly affected the level of export performance of the participating
firms. By clustering all participating firms according to their level of alignment and adaptation, ‘highly
ambidextrous’ firms (i.e., high scores on both alignment and adaptation) outperformed the firms in the other
combinations. The study offers practical suggestions on how exporting firms can improve profitability and
performance by pursuing the proper combinations of alignment and adaptability corresponding to the dynamism
of their export markets. The main contribution of this paper is the examination of performance impact of
dynamic capability in exporting context which should contribute to the future development of this line ofresearch,
particularly in emerging economies.

Full Text: PDF DOI: 10.5539/ibr.v6n8p102

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This work is licensed under a Creative Commons Attribution 3.0 License.

International Business Research  ISSN 1913-9004 (Print), ISSN 1913-9012 (Online)

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