RBV-Based Dynamic Capabilities as a Strategy for MSMEs in the Processed Food Sector in the Global Economy
(A Study of Local Processed Food Producers in Tulungagung, East Java)
DOI:
https://doi.org/10.61132/ijems.v3i2.1197Keywords:
Dynamic Capabilities, Exports, Internationalization, RBV, SMEsAbstract
The objective of this study is to develop a theoretical framework that can be used to identify the key resources and capabilities involved in the globalization process. This case study aims to examine how export-oriented small businesses in Indonesia achieve success at the international level. To obtain qualitative data, in-depth interviews were conducted with the Makmur Susanti Group, an MSME in Tulungagung, East Java. This study, based on the Resource-Based View (RBV), demonstrates how dynamic capabilities in production, networking, marketing, learning, legal, and synergistic areas contribute to the formation of competitive advantages that support business sustainability and continuity. The study indicates that success in internationalization requires a combination of capabilities that can meet market needs, rather than a single capability. This study contributes to the literature by offering a comprehensive framework of the internationalization process and providing practical insights for policymakers and practitioners aiming to enhance the competitiveness of SMEs. The research findings underscore the importance of capability development and government support in facilitating the global expansion of SMEs. Ultimately, this study provides a foundation for further investigation into the dynamic capabilities required for SMEs to thrive in international markets.
Downloads
References
Ahmad, A. S., & Zaman, M. (2023). The impact of digital transformation on the performance of SMEs in the retail sector: Evidence from Pakistan. Journal of Digital Innovation, 5(2), 108-124. https://doi.org/10.1016/j.jdi.2023.03.002
Alamanda, D. T., Anggadwita, G., Profityo, W. B. P. B., & Kurniati, D. M. (2024). Enhancing competitiveness of Indonesian culinary SMEs: The role of entrepreneurial networks, entrepreneurial bricolage, and frugal innovation. Significant: Journal of Economics, 13(2), 425–438.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Chi, T., Kilduff, P. P. D., & Gargeya, V. B. (2016). Factors affecting international business venture (IBV) performance of emerging market firms: A value chain perspective. International Business Management, 10(15), 2802–2809.
International Monetary Fund (IMF). (2016). Global outlook update. Washington: World Bank.
Junita, F., Yuniarti, Soeparna, I. I., & Kesumawardhani, R. (2023). Internationalization of small and medium enterprises in Indonesia: Towards integrative policy approach of competitiveness and connectivity. Yuridika, 38(2), 333–370. https://doi.org/10.20473/ydk.v38i2.42955
Kaur, K., & Kumar, S. (2024). Resource-based view and SME internationalization: A systematic literature review of resource optimization for global growth. Management Review Quarterly. https://doi.org/10.1007/s11301-024-00478-1
Knight, G. A., & Cavusgil, S. T. (2004). Innovation, organizational capabilities, and the born-global firm. Journal of International Business Studies, 35(2), 124–141. https://doi.org/10.1057/palgrave.jibs.8400071
Lee, S., & Chen, X. (2023). Exploring the role of entrepreneurial orientation in the internationalization of family-owned SMEs: A longitudinal study. Family Business Review, 36(3), 210-229. https://doi.org/10.1177/08944865231140014
Lestari, E. D., Abd Hamid, N., Shamsuddin, R., Kurniasari, F., & Yaacob, Z. (2024). Investigating the factors of SMEs’ business resilience in the post-pandemic crisis of COVID-19 with technology adoption as a quasi-moderator: A multigroup analysis of Indonesian and Malaysian SMEs. Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2023.2301135
Marino-Romero, J. A., Palos-Sánchez, P. R., & Velicia-Martín, F. (2024). Evolution of digital transformation in SMEs management through a bibliometric analysis. Technological Forecasting and Social Change, 199. https://doi.org/10.1016/j.techfore.2023.123014
Pagell, M., & Wu, Z. (2009). Building a more complete theory of sustainable supply chain management using case studies of 10 exemplars. Journal of Supply Chain Management, 45(1), 37–56. https://doi.org/10.1111/j.1745-493X.2009.03162.x
Ringo, D. S., Kazungu, I., & Tegambwage, A. G. (2024). Effect of innovation capabilities on export performance: Evidence from manufacturing SMEs in Tanzania. Technological Sustainability, 3(1), 24–40. https://doi.org/10.1108/TECHS-09-2022-0038
Terjesen, S., Hessels, J., & Li, D. (2016). Comparative international entrepreneurship: A review and research agenda. Journal of Management, 42(1), 299–344. https://doi.org/10.1177/0149206313486259
Wai, K. W., Liston-Heyes, C., Liu, W., Liu, G., & Cowling, M. (2022). Organizational capabilities and SME exports: The moderating role of external funding intentions and managerial capacity. Small Business Economics, 58(1), 247–261. https://doi.org/10.1007/s11187-020-00408-x
Weber, R. P. (1990). Basic content analysis (2nd ed.). Sage Publications, Inc.
Wong, D. T. W., & Ngai, E. W. T. (2021). Economic, organizational, and environmental capabilities for business sustainability competence: Findings from case studies in the fashion business. Journal of Business Research, 126, 440–471. https://doi.org/10.1016/j.jbusres.2020.12.060
Yin, R. K., Calvin, Y., & Mali, G. (2018). Case study research and applications: Design and methods (6th ed., p. 319). SAGE Publications: Thousand Oaks. https://doi.org/http://dx.doi.org/10.1563
Zahoor, N., Khan, Z., Arslan, A., Khan, H., & Tarba, S. Y. (2022). International open innovation and international market success: An empirical study of emerging market small and medium-sized enterprises. International Marketing Review, 39(3), 755–782. https://doi.org/10.1108/IMR-12-2020-0314
Zhang, Y., & Liu, J. (2022). Strategic alliances and their impact on innovation in small and medium enterprises: A resource-based view approach. International Journal of Business Strategy, 42(1), 55-74. https://doi.org/10.1108/IJBS-11-2021-0048
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 International Journal of Economics and Management Sciences
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
