The Role of Technological Capabilities: A Study of Malaysian High-Tech Born Global Companies’ Early Internationalization

Abstract

Technological capabilities are important because they play crucial role to born global and successful internationalization of businesses in terms of their innovativeness, creation of business links, technological learning, and the attainment of international experience. This paper aims to enhance the understanding of high-tech born global companies in Malaysia by looking at the role of technological capabilities among high-tech born global companies’ early internationalization in Malaysia. Although the innovation and technological capabilities have been the subject of inquiry by prior studies, very little research however have been done into the role of technological capabilities. Multiple case analysis was used to explore the role of technological capabilities towards the early internationalization of high-tech born global companies in Malaysia. The results of the study show that all three technical capabilities: technical knowledge, supporting technological tools and technology partners have a positive influence on early internationalization in Malaysia. However, technical knowledge and technological tools seems more important for these companies in Malaysia to expand their businesses into the international market. This study contributes to the field in several ways. First, it provides empirical research on internationalization by looking at the early internationalization that have been used in Malaysia and secondly, the study provides a model that explains how technological capabilities are used under the resource-based view theoretical lens.