Understanding Relationship among Overseas Market Orientation, Dynamic Internationalization Capability and International Performance: A case of Information Service Industry

Abstract

This article explores the relationship among overseas market orientation, absorptive capacity and dynamic internationalization capability, and their impact on the international performance of small and medium-sized firms (SMEs). This study distinguishes between international exploitation and international exploration. This study also extends the literatures on dynamic internationalization capability by introducing absorptive capacity as a moderator. This study empirically examines the research framework using survey data from 345 information service firms in Taiwan. The findings confirm previous studies that claim a positive relationship among overseas market orientation, dynamic internationalization capability, and international performance. The findings suggest that experts should consider ambidexterity as a competitive contextual factor in line with the complementary effect of international exploration and exploitation. The article concludes with a discussion of implications for research and practice.