The utilization of local agent knowledge by multinational MedTech firms in Emerging Markets Internationalization : a dynamic capabilities perspective

Abstract

The internationalization process of firms are well described in literature. The two foremost methods for Internationalization are the Uppsala model (phased commitments increasing over time) and the Born-Global model (immediate rapid expansion into various markets simultaneously). Regardless of which method is used, the utilization of market knowledge obtained from a Local Agent, is a key ingredient for a firm to develop Dynamic Capabilities to successfully Internationalize. There is a paucity of research on Internationalization in the MedTech industry, specifically regarding Internationalization into the markets of the Middle East and Africa. Historical research has focused on the internal perspective of the MedTech firm, or a complete external perspective. No research could be found on the perspective of Local Agents concerning this process. The current study aims to share the opinion of Local Agents on the Internationalization of MedTech firms into the Middle East and Africa. The study followed an inductive philosophy with a qualitative design. Data was gathered through multiple individual interviews with key stakeholders. The results show that Multinational MedTech firms do not effectively develop Dynamic Capabilities to address the market opportunities in these countries through the utilization of the knowledge they acquire from Local Agents. It contributes to the theory of Dynamic Capabilities by applying the current findings to the three building blocks for the first time in this industry in the MEA region. It also provides guidelines on structuring a questionnaire for the future escalation of these findings into a quantitative study through surveys across multiple settings.