Understanding The Relationship Between Dynamic Capabilities And Internationalization Readiness With Innovation As Mediating In The Smes In Jordan

Abstract

The purpose of this research is to explore the influence of dynamic capabilities on the internationalization readiness. In the same aspect, the innovation role has been treated as a mediating variable in SMEs. The problem of this research is recognized from the fact of that SMEs cannot survive in the market for long time due to the replications of their product and services with less price charged by the competitors, also due to the existence of internationalization barriers. Yet, there are many positive indicators about the dynamic capabilities that enterprisers own.  The partial least square structural equation modeling (PLS-SEM) technique is utilized to test the study hypotheses. In this study, an adopted questionnaire was employed, the research population covers the SMEs in Jordan, the sample includes 306 SMEs selected based on clear criteria. The targeted respondents were mainly the managers from each SME. The following are the study's principal findings: 1) dynamic capabilities have a significant impact on internationalization readiness; 2) dynamic capabilities have a significant impact on innovation; 3) innovation has a significant impact on internationalization readiness; and 4) innovation mediates the relationship between dynamic capabilities and internationalization readiness. Nonetheless, this study presents a full evaluation of the essential elements for internationalization readiness in order to provide practical feedback. The government and policymakers should use the findings of this study to enhance the country's economic development.