Dynamic Capabilities of Indonesian Business Aggregators in Entering Global Markets

Abstract

The increasing integration of digital technologies and global value chains has strengthened the strategic role of business aggregators in promoting the internationalization of small and medium-sized enterprises (SMEs), particularly in institutionally fragmented emerging economies. However, there are few studies that examine how aggregators develop and coordinate dynamic capabilities across organizational boundaries to support entry into global markets. This study examines how Indonesian business aggregators build distributed dynamic capabilities and analyzes the institutional, organizational, and market conditions that shape their development. Using a qualitative single-case design, the study analyzes PT Sarinah based on in-depth interviews and documentary evidence. The data were analyzed through an iterative coding process and a mechanism-level analysis based on a dynamic capability’s framework. The results reveal a temporally sequential and mechanism-driven model of capability development. First, institutional fragmentation triggers intensive monitoring routines that integrate regulatory and market information. Second, strategic capture occurs through coordinated product curation, partnership orchestration, and financial harmonization, consolidating the fragmented resources of SMEs. Third, the reconfiguration process institutionalizes capability enhancement through digital integration, operational restructuring, and supply chain optimization. These processes are reinforced by recursive feedback loops that gradually integrate capabilities across the ecosystem. This study contributes to dynamic capabilities theory by conceptualizing dynamic distributed capabilities as a process that crosses boundaries and is embedded in ecosystems, rather than as an internal routine of a firm. The study extends research on internationalization by identifying generative mechanisms through which aggregators stabilize cross-border participation in the context of emerging markets. The findings also offer implications for the design of export policy, the regulation of aggregators, and programs for the internationalization of SMEs in emerging economies.

Access to Document

Other files and links

• Link to publication in Scopus
• Open Access Version Available

Fingerprint