Configuring internationalization readiness: An fsqca study of Sabah’s SMES

Jaratin Lily and Chew Tze Cheng @ Nur Alesha Chew and Debbra Toria Nipo and Suddin Lada and Saizal Pinjaman (2025) Configuring internationalization readiness: An fsqca study of Sabah’s SMES. International Journal of Research and Innovation in Social Science (IJRISS), 9. pp. 6569-6584. ISSN 2454-6186

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Abstract

This study investigates the causal conditions that shape high readiness for internationalization among small and medium-sized enterprises (SMEs) in Sabah, Malaysia. Drawing on the Dynamic Capabilities Theory, Resource Based View, Institutional Theory, and Configuration Theory, the research applies fuzzy-set Qualitative Comparative Analysis (fsQCA) to data from 44 SMEs engaged in or preparing for cross-border activities. Five conditions, namely market uncertainty, firm resources, risk perception, international knowledge, and government support, were examined through necessity and sufficiency analyses. The necessity analysis identified government support, firm resources, and international knowledge as quasi-necessary conditions, consistently present in most high-readiness cases. The configurational results revealed six equifinal pathways to readiness, clustered into three strategic models: (1) Institutional Compensation Models, where government support offsets shortfalls in resources and international knowledge; (2) Capability-Driven Independence Models, where strong internal capacities lead high internationalization readiness without institutional reliance; and (3) an Ideal Synergy Model, where all enabling factors align to produce the most robust internationalization readiness. The findings highlight the context-dependent role of both the presence and absence of conditions, demonstrating that multiple, asymmetrical routes can achieve the same outcome. The study advances theoretical understanding by integrating institutional and capability perspectives within a configurational framework. It provides actionable insights for policymakers designing targeted support programmer and for managers seeking to strengthen their firms' internationalization readiness. Limitations related to sample size, regional focus, and cross-sectional design are acknowledged, with recommendations for longitudinal, comparative, and technology integrated extensions in future research.

Item Type:	Article
Keyword:	Internationalization readiness, fsQCA, SMEs, Configuration analysis, Sabah
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28-9999 Industries. Land use. Labor > HD2321-4730.9 Industry > HD2340.8-2346.5 Small and medium-sized businesses, artisans, handicrafts, trades L Education > LB1028 Education research L Education > LB1028 Education research > LB5-3640 Theory and practice of education > LB2300-2430 Higher education
Department:	FACULTY > Faculty of Business, Economics and Accounting
Depositing User:	JUNAINE JASNI -
Date Deposited:	06 Jan 2026 08:54
Last Modified:	06 Jan 2026 08:54
URI:	https://eprints.ums.edu.my/id/eprint/45768

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