Which dynamic capability configurations are most effective in supporting different international market entry strategies in MNEs?

Abstract

This research explores dynamic capabilities configurations that are most effective in supporting multinational enterprises (MNEs) international market entry strategies. While the Dynamic Capabilities View (DCV) identifies sensing, seizing and reconfiguring as central to competitive advantage, limited research explains how these capabilities combine and align with entry mode decisions. Through semi-structured interviews with twelve senior executives across globally operating MNEs, the study applies reflexive thematic analysis to identify three capability domains. First, firms emphasise sensing, learning, and cultural-relational capabilities when preparing for internationalisation. Second, entry mode selection is shaped by strategic, institutional, and financial capabilities, demonstrating that market entry is capability-contingent rather than purely economic. Third, effective market entry arises from synergistic capability bundles-particularly technology-enabled integration, cross-functional collaboration, stakeholder engagement, and adaptive resilience. The findings confirm DCV assumptions while extending theory by showing that dynamic capabilities are multi-level, context-sensitive, and most impactful when deployed as integrated configurations. Practical implications and future research avenues are discussed.