Impact of Dynamic Capabilities on Global Mind-set: The Case of ICT Start-ups in Sri Lanka

Abstract

The purpose of this study is to explore how firm-level dynamic capabilities influence the level of firms’ global mindset in information and communication technology (ICT) startups in Sri Lanka. Based on the literature on dynamic capabilities and global mindset, the impact of dynamic capabilities on global mindset is tested empirically on a sample of 295 Sri Lankan ICT start-up firms using structural equation modeling (SEM) analysis technique to find whether if there is any difference of the impact from sensing dynamic capabilities, seizing capabilities and reconfiguration capabilities on the global mindset. The results show a positive significant impact of the sensing, seizing and reconfiguration capabilities on the global mindset in ICT startups in Sri Lanka. However, among three different but theoretically interrelated capabilities, seizing and reconfiguration dynamic capabilities have shown the strongest impact on the global mindset. This study contributes to the emerging literature of global mindset in the international business and to strategic management literature by understanding the global mindset through the lenses of dynamic capabilities as organizational level contingencies.