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Much of the existing research conducted on dynamic capabilities and the microfoundations of innovation has focused either on individual or organizational factors without considering mechanisms. This paper aims to address this “process” gap by developing an integrated conceptual framework based on individual, processual and structural microfoundations as well as the interaction between and among them with respect to innovation.

To understand the theoretical and empirical landscape in building our conceptual model, we conducted a content analysis of existing research microfoundations, dynamic capabilities and innovation. Using NVivo 12, we identified and examined the individual and organizational behavior microfoundations and their interplay to propose possible processual mechanisms. We framed these process mechanisms using the sensing, seizing and reconfiguring dynamic capabilities framework.

The study emphasizes certain microfoundations that facilitate innovation-dynamic capabilities at various organizational levels. It is posited that both formal and informal strategic intelligence processes, along with directed and undirected information research methods, constitute crucial microfoundations for identifying opportunities for innovation. For the internal capture and seizing of these opportunities, we assert that the diversity of individual internal networks and the mechanisms for social integration will prove to be critical. Furthermore, the paper suggests that reconfiguring microfoundations, specifically an organization’s flexible structure and the involvement of external directors with diverse experiences, are pivotal in spurring innovation.

We combine the microfoundations approach (individual, structural and processual) with the dynamic capabilities theory (sensing, seizing and reconfiguring) to offer an integrated conceptual framework underlying innovation’s dynamic capabilities. This sets us apart from existing research by both introducing processual aspects and their multilevel interactions.

Striving for growth since their early stages, many small and medium enterprises (SMEs) are increasingly adopting an entrepreneurial behavior based on a rapid and early international expansion. Although some extant research have been done on the dynamic capabilities of SMEs’ accelerated internationalization–born global (BG) SMEs, no study was, to the best of the authors’ knowledge, carried on the microfoundations underlying this phenomenon. This paper aims to fill this gap in the literature and contribute to the growing theory development of SME’s microfoundations.

This paper proposes an integrated conceptual framework to better identify the microfoundations that influence born global SMEs internationalization by integrating individual, structural and processual – the microfoundations approach within the dynamic capabilities of sensing, seizing and reconfiguring.

Our propositions argue that born global SMEs are characterized by dynamic capabilities based on a combination of some individual (manager’s human and social capital, such as its personal orientation, experiences, cognition and intuition), process (market learning, technology development) and structural (agility, communication/coordination) factors that helps a lot in the acceleration of the internationalization process.

Empirical study should be done to enrich the conceptual material.

To identify some international opportunities, companies should rely on the entrepreneurial orientation of its managers, its experience and network as well as the market-related learning and technological processes. The managerial cognition is important to seize opportunities while the manager’s human capital is needed to reconfigure resources while internationalizing rapidly.

This research shows that individual attributes are important but insufficient to accelerate the internationalization process. Some individual characteristics are more useful in sensing international opportunities rapidly, such as manager’s international entrepreneurial, past experience and network, However, the managerial cognition is important to seize opportunities, whereas the manager’s human capital is needed to reconfigure resources while internationalizing rapidly.

Born global firms must develop several dynamic capabilities to foster their accelerated early international development. This paper gives insights about the individual, structural and processual of sensing international opportunities, seizing and reconfiguring resources and competencies for born globals.