Dynamic capabilities for the internationalization of services: The AFF case

In order for professional service firms, more specifically management consultancies, to fulfill the needs of domestic client firms that have internationalized, the ability to meet new demands and provide new services becomes essential. The concept of dynamic capabilities addresses this issue by suggesting that the existence of intentional processes for resource reconfiguration can effectively equip a consultancy to change alongside its environment.

Our Assessment of Dynamic Capabilities framework will be presented as a tool for exploring the extent to which each of the three core dynamic capabilities as proposed by Døving and Gooderham (2008); heterogeneity of human capital, systems for change and reciprocal external alliances; exist within a consultancy. This thesis focuses on one specific management consultancy, the AFF (Administrative Research Institute), and discerns that its current internationalization challenges may be linked to insufficiencies in dynamic capabilities. However, this is not a definitive conclusion as limitations to the framework exist and further testing must ensue.