Virtual Manufacturing Technology as a Determinant of Internationalization of Firms: A Dynamic Capability through Nations’ Competitiveness across Countries

Abstract

The study used resource based theory/dynamic capabilities to examine virtual manufacturing technology as a determinant of internationalization of firms across countries. Descriptive research design was used for the study and the research observed 144 countries of the world. The study made use of secondary data set in the world economic forum from the global competitiveness report of 2013-2014 and were analyzed with regression (Ordinary Least Square) method to test hypothesis. Findings show that virtual manufacturing technology has a positive association with nations’ competitive capabilities and nations’ competitive capabilities is positively correlated with internationalization of firms across countries. Also, nation’s competitive capabilities mediates the relationship between virtual manufacturing technology and internationalization of firms while managerial competencies completely moderate the association between virtual manufacturing technology and nation’s competitive capabilities. The implication for firms and management was identified with more effective and efficient performance but regardless of this effect, there is associated risk with the adoption of virtual manufacturing technology for production and investigating how to manage this risk is needed. Keywords: virtual; manufacturing; firm; internationalization; technology; competitiveness; mediation; managerial, competencies.