Sustained competitive advantage of Malaysian born global SMES: role of international entrepreneurial capability and positive psychological capital

Abstract

This study endeavours to evaluate the individual as well as synergistic role of international entrepreneurial capability and positive psychological capital (PsyCap) in achieving sustained competitive advantage of born global firms in Malaysia. A tentative research framework for evaluating sustained competitive advantage of born global SMEs is developed through extant literature review on significance of international entrepreneurial capability and positive psychological capital for firms’ sustained competitiveness. Data from a careful survey of born global SMEs in Malaysia has been analysed using exploratory factor analysis and hierarchical multiple regression analysis. Findings suggest that sustained competitive advantage of born global SMEs in Malaysia has strong positive association with both entrepreneurs’ international entrepreneurial capability and psychological capital. However, insignificant interaction of PsyCap implicates its probable effectiveness through ‘build and broaden’ viewpoint. Originality of this study is twofold: Firstly, it extends the existing knowledge on capability evolution in born global firms by linking its association with sustained competiveness from entrepreneur’s capability viewpoint. Secondly, it attempts to integrate interdisciplinary theories of capability view and psychological capital in investigation of sustained competitiveness among born global SMEs.