Tensions within Firms When They Face Markets: How SMEs Explore the Opportunities for Internationalization

Today, the business environment is constantly shifting. Firms must adapt themselves to this characteristic. A relevant inquiry is how firms can adapt and to advance in such a context. By doing so, firms require to decide about the location of resources in order to answer the markets pressure. This decision-making process generates tensions within the firms. Various and diverse theoretical approaches tried to analyze such tensions. Particularly, the organizational capabilities approach has tried to explain how firms can configure their resources and capabilities to face the challenges of the market when they internationalize their operations. According to the existing literature, there are two major research areas which explain the adaptability of the firms. First, from the strategic point of view, there is the concept of Dynamic Capabilities which is related to the ability to cultivate a long-term competitive advantage by the firm. Second, at the executive level within the firm, there exists the ability to explore and exploit business opportunities. This ability has been coined as Ambidexterity. In this research project, I seek to establish the micro-foundations of the organizational ambidexterity and how this capability contributes to small and medium-sized enterprises (SMEs) to go abroad. To examine the ambidexterity of SMEs this project applies a qualitative approach by conducting the research strategy of the case study. In doing so, this project aims to shed new light on how managers are leading their teams to take advantage of the business context, especially, within the international business arena. Thus, this project targets to contribute to understanding how SMEs can select markets by applying ambidexterity. Specifically, I will analyze familiy business which have been successful in the internationalization process