Dynamic capabilities configurations in MNEs: An fsQCA exploration across developed and emerging markets

Multinational enterprises (MNEs) operate in increasingly uncertain institutional environments, where the development and reconfiguration of capabilities are central to international performance. This study examines how meta-dynamic capabilities and strategic dynamic capabilities combine across different institutional contexts. Using fuzzy-set Qualitative Comparative Analysis on a sample of 25 MNEs operating in developed, emerging, and transitional markets, the study identifies five capability configurations associated with higher performance. The findings show that the effectiveness of capability portfolios is context dependent: configurations emphasizing meta-level capabilities are more frequently associated with subsidiaries operating in emerging and transitional markets, whereas strategic capabilities play a more prominent role in developed market contexts. The results also indicate that alliance management and ambidexterity are not uniformly required but become effective under specific institutional conditions. The study contributes to a configurational understanding of dynamic capabilities in international business and offers managerial implications for designing context-sensitive capability portfolios across subsidiaries.