Analysis of dynamic capabilities in the internationalisation process

Dynamic capabilities are firm’s ability to integrate, build, and reconfigure internal and external resources and competences to address and shape rapidly changing business environments. In order to overcome internalization theory deficiencies, they have been advanced by eminent professor at Berkley University David J. Teece so as to explain multinational enterprise internationalization. Sensing specifically becomes the firm ability to identify business opportunities abroad. Seizing instead involves being able to address such foreign opportunities. Transforming is declined for the purposes of this study in the management of the relationship between headquarter and its subsidiaries and offices abroad. After having reviewed studies covering such issue, main purpose of this analysis is to investigate how dynamic capabilities manifest themselves in international expansion of a Multinational enterprise. In order to do so, a qualitative case-study having as subject Telecom Italia Sparkle S.p.A. is presented. The company is a leading global international telecommunications provider with a significant international presence. While sensing and seizing capabilities are easily identified and observed, company structural limits which do not make possible transforming capability nurturing are presented. Finally a potential interconnection between the absence of trasforming capability and the need for a parnership is advanced