Highly-digitalized international new ventures’ first export order and ongoing capability development

This chapter, underpinned by a capabilities perspective of resource-based theory, investigates the extent to which decision-makers of rapidly internationalizing start-up firms with a highly digitalized business model that subsequently de-internationalized, are likely to possess adequate capabilities when accepting their first exportorder. New findings emerge from semi-structured interviews with 16 owner-managers of UK start-ups togetherwith secondary data where available. First, the findings question whether certain owner-managers initiallydevelop adequate ‘threshold’ rather than ‘dynamic’ capabilities. Despite the prevalence of a ‘global mind-set’among decision-makers and recognizing the need to identify windows of opportunity given their limited domestic market, some seemingly lacked the capability to effectively exploit opportunities through a validated business model. Second, the results raise doubt concerning particular owner-managers’ capability to exhibit transformative behavior. This leads to the likelihood of various founding management teams needing thesupport of stakeholders such as investors to enhance capabilities, hence, facilitating continuing internationalization.