The impact of dynamic capabilities on innovation during internationalization: a study on Italian SMEs

Purpose – This paper examines the role of dynamic capabilities in fostering innovation within the internationalization processes of Italian SMEs. From the perspective of impact articles, the objective is to contribute to advancing knowledge through the collaboration between scholars and practitioners. Design/methodology/approach – This paper employs a qualitative research method in the context of Italy. Throughout the research process, relevant practitioners were engaged to bridge the gap between academic research and real-world applications. This was achieved by studying practical studies and conducting interviews with professionals. Findings – The results show the impact of different categories of dynamic capabilities developed during internationalization processes on the innovation management practices of small and medium-sized enterprises. Originality/value – The advent of the COVID-19 pandemic, international conflicts and digital technologies has significantly redefined the global business landscape. This has compelled companies to innovate and remain competitive in international markets continuously. However, small and medium-sized enterprises face significant obstacles in meeting this challenge and a dynamic approach is needed to understand their innovation processes in complex and changing foreign markets.