International networking in dynamic internationalization capability: the moderating role of absorptive capacity

In this era of globalization, firms need to develop dynamic internationalization capability for international competition. Originally, the concept of dynamic internationalization capability is related to a firm's ability to enhance, combine, or reconfigure existing various resource bundles and capabilities in order to address rapidly changing global environments. The networking in international marketing is the dynamic internationalization capability of organizations to realize sustainable competitive advantage. This requires organizations to continuously consolidate foreign relations with partners, suppliers and customers, and also adapt their resources and routines accordingly, for which they are heavily dependent on knowledge. Knowledge Acquisition by networking as an antecedent for dynamic internationalization capability is, however, understudied. This article explores the relationship among international network relationship, absorptive capacity and dynamic internationalization capability, and their impact on the international performance of small and medium-sized enterprises. It 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 211 manufacturing firms. The findings confirm previous studies that claim a positive relationship among international network relationship, dynamic internationalization capability, and international performance. In addition, the results indicate that absorptive capacity positively moderates the relationship between international network relationship and international exploitation. More importantly, 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.