Exploring the role of managerial and organizational capabilities for the inbound internationalization of small and medium-sized enterprises

Abstract

This study investigates the inbound internationalization of small and medium-sized enterprises (SMEs). Inbound internationalization refers to a process of internationalization where firms attract foreign customers to their home market instead of entering foreign markets. While a plethora of studies have documented outward firm internationalization, knowledge of inbound internationalization is limited. We draw on the dynamic capabilities perspective and conduct qualitative research with owner-managers of tourism and hospitality SMEs. Our findings show that both managerial and organizational capabilities (networking, marketing, technology, and innovation) drive inbound internationalization. We contribute to the SME internationalization literature by investigating an underresearched phenomenon and by identifying the operational and dynamic capabilities that drive inbound internationalization. Furthermore, we add to the capability perspective in an international business context by showing that managerial and organizational capabilities complement each other and jointly influence inbound internationalization. Our study also contributes to the international business literature in a Latin American context.