MSMEs' internationalisation processes in a dynamic industry environment: a qualitative cross-national study among emerging economies Open Access

The international business environment is characterised by continuous and dynamic changes, rendering it unpredictable and unstable (e.g. Prabhu and Srivastava, 2024). For instance, from being dominated by multinational corporations (MNCs), today, both MNCs and small and medium enterprises (SMEs) compete in the same international space (Dabić et al., 2020). SMEs are known for facing human or financial resource constraints (Buccieri et al., 2021). Nevertheless, a more globalised business environment, coupled with technology's fast development, has facilitated smaller businesses' access to internationalisation strategies (Hervé et al., 2021). The internationalisation of SMEs has led to both financial and non-financial effects, with the latter encompassing new knowledge, skill development or enhanced reputation (Rahman et al., 2023).

Micro-sized firms also experience issues of resource constraints (Tiwari and Korneliussen, 2018) and are similarly affected by the globalisation phenomenon on their journey to internationalisation. Unsurprisingly, Hermel and Khayat (2011) noticed that micro firm leaders displayed both proactive and reactive sentiments, followed incremental and exponential steps and a gradual and rapid pace towards internationalisation. Despite these behavioural traits, leaders placed importance on networking and managerial ability, together with developing a distributor network, reputation and intellectual property (Hermel and Khayat, 2011).

Micro, small- and medium-sized enterprises (MSMEs) are defined differently depending on geographic and other contexts. In the European Union (EU), micro-sized firms employ fewer than 10, small-sized between 10 and 49, and medium-sized between 50 and 249 employees, respectively (Eurostat, 2024). Similar to the impact of SMEs on many economies (e.g. Aïssaoui et al., 2025), MSMEs' contribution is also undeniable. Also, in the EU, MSMEs represent more than 99% of all businesses, employing more than 60% of private-sector staff (Eurostat, 2024) and 70% worldwide (ILO, 2024). In emerging economies, MSMEs are prevalent in the agriculture sector, particularly as small landholders (e.g. Jayne et al., 2022). For instance, in the coffee industry, 60% of growers are smallholder farmers (International Coffee Organisation, ICO, 2023).

The coffee industry provides an appropriate exemplar and foundation for MSME internationalisation research. As one of the world's most popular beverages (Freitas et al., 2024), coffee production and consumption have steadily increased (ICO, 2023; Statista, 2024a, b). An increase in exports (ICO, 2024a) has been one of the resulting outcomes.

Borrella et al. (2015) highlight the fluid and dynamic nature of the coffee business environment, where both the supply and demand sides converge. A first wave (1930–1960) dominated by mass production/consumption was followed by a second wave (1960–1990), in which coffee became differentiated by quality (Borrella et al., 2015). These waves gave rise to specialty coffee, sold in cafes and coffee bars as coffee beans and coffee beverages (Borrella et al., 2015). The third wave (1990 to now) reinforces these points, with coffee becoming more strongly associated with an artisanal product (Borrella et al., 2015). Brewing methods, taste or origin differentiation and new generations of micro coffee roasters have popularised the direct coffee trade (Borrella et al., 2015).

Thus, the coffee product has gradually “de-commoditised”, with quality and sustainability demands dictating consumers' choices (Borrella et al., 2015). Riot et al. (2013) conceptualise de-commoditisation as “the attempt to avoid the commodity trap and maintain the perceived value of the offer product perceived by customers” (p. 920). The diversity of specialty coffees and the emergence of roasting technologies (Bolka and Emire, 2020) are creating trade opportunities and elevating internationalisation approaches. Research by Vu et al. (2022) revealed this development in Vietnam. In their sample of mainly micro and small-sized coffee shops, Vu et al. (2022) demonstrated firms' involvement in various stages of the coffee supply chain, including exporting specialty coffee. Efforts by coffee roasters to educate coffee consumers, together with the organisation of coffee events, training and promotion (Borrella et al., 2015; Vu et al., 2022), advance the coffee supply and experience to new levels.

Against this backdrop, the present research is concerned with the path towards internationalisation from the perspective of MSME leaders operating in the coffee industry and in emerging economies. More specifically, the study examines business leaders' perceptions of opportunities and threats, how opportunities can be capitalised and how their industry can sustain their internationalisation path given coffee's current global demand growth. The study chooses a cross-national approach, gathering data from MSMEs in five coffee-producing nations, four of them among the world's 10 largest (USDA, 2024) and contributing to various forms. Recently, Aïssaoui et al. (2025) identified the dearth of SME-related cross-country research, including on internationalisation, together with the prevalent focus on established economies. Furthermore, Dabić et al. (2025) acknowledge the limited understanding of how small and medium enterprises in emerging economies maximise the advantages while mitigating the shortcomings of internationalisation efforts.

First, and apart from addressing crucial research gaps (Aïssaoui et al., 2025; Dabić et al., 2025), the study advances the extant literature and research on internationalisation. Moreover, the perspectives of MSMEs operating in emerging economies and the competitive and changing coffee business environment will be examined. To date, firm internationalisation research has paid limited attention to smaller businesses operating in emerging markets as compared to larger organisations (Kumari et al., 2025). Conversely, growing interest exists in improving the limited understanding of internationalisation processes among SMEs operating in emerging economies (e.g. Molina-Sieiro et al., 2023; Tajeddin et al., 2023).

Second, the study's findings have practical value for strategy and policy development, informing industry and public entities about the experiences, opportunities and concerns of MSME leaders. Consequently, important implications for MSMEs in nations striving for more international exposure and competitiveness emerge. Advancing knowledge in these areas is crucial as the globalisation phenomenon requires a deeper understanding, in particular, of the barriers faced by emerging economies in their internationalisation pursuits (Chandra et al., 2021). Furthermore, by understanding smaller firms' internationalisation processes, support systems and policies could be designed to tailor to these firms' unique opportunities and challenges (Kumari et al., 2025). While this study primarily focuses on industry internationalisation, the majority of the participating firms were exporting at the time of the study. Furthermore, firm leaders' viewpoints are crucial to growing awareness and understanding of future opportunities and threats. Third, the chosen qualitative method will provide conceptual insights leading to the development of a theoretical framework.

The study's characteristics, which underscore the agile and dynamic nature of the coffee industry, suggest the appropriateness of adopting dynamic capabilities (e.g. Teece, 2007) as the theoretical background. This decision is aligned with recent research contributions emphasising the uncertainty and volatility of the coffee business environment. Jell-Ojobor and Kramer (2022) considered dynamic capabilities to examine sustainable international supply transformations in the coffee industry. Ramos et al. (2023) also integrated dynamic capabilities when they investigated the coffee supply chain's associated actor networks and relationships. By adopting this framework, the study will make a fourth contribution through its evaluation and extension in the context of the research.

Several points support the consideration of the dynamic capabilities approach (DCA). For instance, an ICO (2024b) report highlights opportunities and threats directly associated with various premises of this framework, demonstrating the dynamic and changing nature of the coffee industry. Opportunities include value creation and regeneration, circular solutions to help address living income gaps, waste reduction and resource efficiency, while resource management, economic inequities and sustainability pressures are key threats (ICO, 2024b). Additionally, and partly related to the coffee industry, Ramos et al. (2023) highlight the turbulence that supply chains have experienced due to heightened unpredictability in consumer demand, market volatility and greater global competition. Moreover, Bille et al. (2025) highlight the complexity of a typical coffee supply chain, with the interplay between multiple actors, from coffee growers to shops.

For decades, and across multiple areas, the DCA has deepened the understanding of smaller firms operating in dynamic and international environments (e.g. Hagen et al., 2024; Weaven et al., 2021). A preamble of the DCA's pillars is offered by Li et al. (2018), the authors posit that to capitalise on the long-term growth of their financial resources, firms must satisfy two fundamental conditions. First, sufficient external resources and productive opportunities must be available (Li et al., 2018). Second, these must possess dynamic capabilities to a) explore and take advantage of opportunities and b) deploy, integrate and reconfigure their internal and external resources (Li et al., 2018). These notions echo those of Viktora-Jones et al. (2024) in that, to maintain their competitiveness, firms need to enhance, combine, protect, and as needed, reconfigure their tangible and intangible resources.

Teece et al. (1997) conceptualised dynamic capabilities (DCs) as firms' capacity to build, integrate and reconfigure their competences (internal/external) to respond to the rapidly shifting business environment. For Teece et al. (1997), “dynamic” refers to firms' capacity to regenerate competencies that enable them to stay in harmony with their changing business environment, particularly in the face of technological developments. “Capabilities” underscores the function of strategic management in enhancing the integration, adaptation and reconfiguration of organisational skills, competences and resources in response to the above changes (Teece et al., 1997). These conceptualisations precede three key capacities (Teece, 2007):

1. Sensing encompasses processes where firms scan, create, learn and interpret opportunities and threats, acquiring knowledge about the environment, as well as new technologies (Teece, 2007), while also being aware of strategic challenges (Teece, 2020). Extending these premises, sensing helps identify and select complementary assets available internally or externally (Lee et al., 2021). As the quality of SMEs' human resources increases, firms with more developed sensing capabilities are better equipped to acquire highly skilled professionals (Lu et al., 2023). Moreover, SMEs with more advanced technological capabilities operationalise sensing by acquiring talent, including engineers or middle-level managers (Lu et al., 2023).

In the domain of coffee exports, Purnomo (2018) ascertained sensing through the identification of business entities that can be long-term partners and help address certification demands. These two cases illustrate that the actions of consumers and business management can help position the brand nationally or even internationally. These notions supporting the insightfulness of “sensing” and the present research's focus on the internationalisation of MSMEs operating in five different coffee-producing countries highlight the importance of the following research question (RQ):

• Sensing opportunities?

• Sensing threats?

• (2)

  Seizing denotes capitalisation, execution and actionable moves and activities, including the acquisition and mobilisation of assets and, accordingly, capture value (Lee et al., 2021; Teece, 2012). Moreover, upon sensing an opportunity, the organisation seizes it through new processes, products or services (Teece, 2007). This step often demands investments to commercialise or develop activities; consequently, it entails a variety of investment possibilities (Teece, 2007). Seizing is also linked to the swift setting in motion of processes, business models or decision rules to exploit the opportunities while avoiding delays or organisational inaction (Khurana et al., 2022). Furthermore, by strengthening their technological competencies and complementing these with other assets, SMEs can address marketing or technological opportunities (Khurana et al., 2022).

Exploring seizing from the perspectives of MSMEs engaged in the coffee industry could illuminate the understanding of the coffee industry's internationalisation; consequently, the following RQ is also proposed:

• Capitalising on opportunities?

• Responding to threats?

• (3)

  Reconfiguring represents the extension or continuation of sensing and seizing, whereby the firm can further benefit from opportunities previously capitalised upon (Khurana et al., 2022) while maintaining “internal coherence” (Teece, 2020). This capacity, therefore, involves revamping existing routines (Teece, 2007), as well as continual renewal (Teece, 2012). Reconfiguring also underscores the role of organisational learning, knowledge management, decentralisation and asset recombination, co-specialisation and co-development (Khurana et al., 2022; Lee et al., 2021; Yang and Stoian, 2024). Reconfiguring is crucial as, in the case of success, firms will continue evolving around a path-dependent model that can turn unfavourable, especially when the business environment shifts (Teece, 2007). Unless the firm's culture is receptive, changing routines can lead to resistance and intensified anxiety, and it can be a costly move (Teece, 2007), though necessary for the firm's future competitiveness.

Research on Indonesia's coffee shop environment further clarifies the reconfiguring process, whereby changes in coffee shops' “corporate culture” have triggered alternative business models (Purnomo et al., 2019). More specifically, consumer trends or the growing diversity of the coffee shop environment have led to greater involvement of female baristas and shopkeepers (Purnomo et al., 2019). The reconfiguring process has also been shaped by the stronger focus on value-adding, including through product/service quality, and the need to build networks between businesses and raw material suppliers (Purnomo et al., 2019).

These notions are also invaluable in the context of the present study and are verbalised in the following RQ:

• Consolidating its performance?

• Responding to potential opportunities/threats?

Despite a growing body of research discussing sensing, seizing and reconfiguring, their empirical evaluation is still scant (Yang and Stoian, 2024). In the small business literature, Buccieri et al. (2021) identify a fragmentation regarding how international new ventures operating in emerging economies build DCs to address resource limitations. These gaps also exist in the coffee entrepreneurship domain. In fact, none of the reviewed studies specifically dissect sensing, seizing or reconfiguring to illuminate the internationalisation path. In coffee supply chain research, Ramos et al. (2023) acknowledge a lack of focus on how DCs can be acquired and on how the contribution of the coffee industry's actors can produce DCs. Ramos et al. (2023), therefore, suggest “a more qualitative, case-based, research approach” (p. 67) in future investigations. These points suggest the usefulness of examining the following additional RQ:

While DCs and SME-related research is growing, numerous areas remain unknown and unexplored. In this study's context, there is a lack of academic research focusing on DCs in emerging economies using a cross-national approach. Chabowski et al. (2017) explain that cross-national research entails comparative studies with an international orientation and focus on more than one nation or culture. Additionally, examining (a) DCs in the context of the coffee industry and (b) internationalisation from the perspective of MSMEs is also limited. Thus, the value of exploratory and qualitative methods was perceived as instrumental.

Exploratory studies are appropriate in cases where pre-existing information about an issue is scant or such information is outdated (Hair et al., 2020). Qualitative research is useful for describing and understanding individuals' experiences (Myers, 2000). These principles align with Kevill et al. (2021), who recommend in-depth research on DCs, particularly given their links with intangible elements (e.g., process, routines, knowledge), as underscored by Easterby-Smith et al. (2009).

The study also chooses purposive sampling, which involves the strategic selection of information-rich cases based on their substance and nature to elucidate the research inquiry (Patton, 2015). The research, therefore, was concerned with gathering the experiences of MSME leaders involved in the coffee industry in five different nations, which also reflects the study's unit of analysis. The criteria for their participation included:

1. At least one year of experience in the coffee industry, though the large majority had worked at least six years (Table 1),

2. Being in an ownership or managerial position,

3. Being active in the coffee industry at the time of the study and

4. The participating firms are MSMEs. Drawing on recent research (e.g. Knight et al., 2020), the EU definition of MSMEs was used for all participating nations.

During March and April 2024, the research team identified 103 coffee businesses in Vietnam, Colombia, India, Peru and Bolivia through available information on web pages (individual businesses, coffee associations). The first four nations are among the world's top coffee-producing countries (USDA, 2024), while Bolivia's case was deemed insightful as a nation experiencing coffee production growth after years of decline (Statista, 2024c). After receiving ethics approval for this low-risk project, contact with these businesses was established. The message (email correspondence) entailed a brief description of the research aims and a request to interview their leaders (owners/managers) at their convenience. These attempts resulted in the agreement of 77 firms' leadership. To maximise the potential for recruiting knowledgeable and experienced individuals, the study employed snowball sampling (e.g., Noy, 2008). This technique was implemented at the end of each interview, in which participants were asked to recommend other individuals within their industry networks and collegial circles. Snowball sampling facilitated the recruitment of an additional 54 informants, thus bringing the total number to 131 (Table 1).

The interview protocol was divided into two parts, with the first gathering demographic details of the participants and their firms and the second focusing on open-ended questions. As aforementioned, each open-ended question was designed to assess the sensing, seizing and reconfiguring of the coffee industry from the perspective of MSMEs, predominantly composed of an already active exporting cohort (Table 1). Equally important was to gather data from MSMEs not yet involved in internationalisation, for instance, to compare the perceptions of exporters and non-exporters. The questions posed to the informants (Q1, Q2, Q3) were verbalised as follows:

The wording of the three questions enabled evaluation of sensing (Q1), seizing (Q2) and reconfiguring (Q3). The semi-structured protocol also encompassed follow-up questions, requests for respondents' further elaboration and illustrations of their points. The participants were informed that their agreement to take part in the interview would be deemed as their consent. While the questions pertained to their industry, they were asked to respond based on their experience and knowledge, given that most firms had international exposure through exports. The questions considered the DCs literature (Teece, 2007, 2020). Studies that have discussed and evaluated sensing, seizing and reconfiguring were also considered. These studies include Khurana et al. (2022), Lee et al. (2021), Li et al. (2018), and Lu et al. (2023). Small business research (Buccieri et al., 2021) and coffee research (e.g. Ramos et al., 2023) contributions were also considered. Given significant distance constraints, together with the fragmented nature of the coffee businesses (rural/urban/peripheral areas) and availability limitations among most participants, most interviews (115, 87.8%) were conducted online. However, opportunities arose to gather data onsite on 16 occasions in the case of Vietnam, as well as meet seven participants at an international coffee event in Ho et al. (2024).

Aligned with Carter et al. (2014), these encounters enabled a deeper understanding of participants' experiences and responses. The encounters also illustrate method triangulation, in which researchers employ various data collection approaches, including observations and taking field notes (Carter et al., 2014). Indeed, visits to the coffee production facilities (e.g. roasting, packaging) and the collection of brochures or extended participant comments enabled method triangulation. Additionally, gathering data across nations fits within investigator triangulation, which entails the participation of various researchers to provide their own observations and conclusions concerning the study (Carter et al., 2014).

The average time of the semi-structured interviews was 60 min; all members of the research team were involved in these interviews. English (India), Spanish (Bolivia, Colombia, Peru) and Vietnamese (Vietnam) were used by the mostly bilingual researchers. Principles of collaborative and iterative translation, including equivalent meaning (Douglas and Craig, 2007), were followed in the development of the interview protocol. The study subscribes to the idea of data appropriateness as opposed to relying on numbers as data quality markers (O'Reilly and Parker, 2013). Nevertheless, recurring patterns and themes were noticed after the 28th interview (Colombia, Vietnam) and after the 18th interview (Bolivia, India, Peru), respectively. The data were translated with the support of professional interpreters and also evaluated by external researchers for clarity and impact.

The methods used in this study are strongly associated with the evaluation of data based on a general inductive approach, which is also considered in the present research. This approach entails data reduction, which facilitates the usage of concepts, categories or themes (Kyngäs, 2020). The inductive approach also helps determine the linkages between the assessment of the study's objectives and the data-related findings (Thomas, 2006). A framework that illustrates “the underlying structure of experiences or processes” (Thomas, 2006, p. 237) revealed in the data is a key final outcome. To analyse the interview data, qualitative content analysis (QCA) and data structure (e.g., Gioia et al., 2013) were embraced. When using QCA, text data are subjectively interpreted by adopting a process entailing the systematic classification of coding and the detection of patterns or themes (Hsieh and Shannon, 2005).

Gioia's methodology entails various orders of analysis. The first-order analysis is referred to as “informant-centric” and entails terms and codes emanating from the data (Gioia et al., 2013). The second-order analysis is based on “researcher-centric” themes, dimensions and concepts where the analysis shifts to a more theoretical realm (Gioia et al., 2013). This process is further deepened through the development of aggregate dimensions and a theoretical model (Gioia et al., 2013). Figures 1-3 illustrate these steps and Figure 5 proposes a conceptual model following the embraced data structure, inductive approach and QCA.

Following Guba's (1981) criteria for assessing trustworthiness (credibility, transferability, dependability and confirmability), Shenton (2004) and Stahl and King (2020) proposed various ways to address these. In line with these authors, investigator triangulation and, to some extent, method triangulation helped overcome potential issues of credibility and confirmability. To deal with transferability, this study's background data helped establish (a) a description of the study under inquiry and (b) a research context that allows for future comparisons to be made (Shenton, 2004). The cross-national characteristics of the study additionally ascertain the value of utilising an analogous data collection protocol across different geographic, socioeconomic and cultural boundaries. Dependability can be addressed by specific research practices that create trust when executed (Stahl and King, 2020); providing an in-depth description of the research methods, as presented in this section, can enable the study's replication (Shenton, 2004).

The preliminary analysis indicates a similar percentage of owners and managers and a clear difference in this study's gender composition (Table 1). Additionally, the analysis illustrates the prevalence of participants who had six or more years of work experience (108, 82.4%). This finding clearly reinforces the value of the study's respondents as information-rich cases. Regarding the firms, 101 (77.1%) were at least six years old, and almost 78% employed fewer than 50 individuals. Finally, more than two-thirds (88, 67.2%) were exporting, and at least 10 of the remaining 43 were planning to begin exports in 2025.

The first overarching question regarding the “sensing” of coffee's growing internationalisation revealed five different themes. Two of these themes underscore positive connotations, two negative and one aligned with both notions (Q1, Figure 1); the analysis will prioritise those themes with the highest frequencies. The assemblage of positive connotations ascertained the importance of the external environment and how it shapes the individual firm's strategic focus and, by extension, that of the coffee industry. Here, value-adding becomes paramount for coffee stakeholders as it is also connected to the product's higher prices. Value is also revealed in the increasing interest in coffee products, higher exports (or starting exports), changing consumer tastes and the opportunities through products perceived as more sustainable (organic coffee).

A predominant theme was the new market regulations, particularly new traceability requirements from the EU. Traceability refers to the ability to trace any feed, substance or food to be utilised for consumption (European Commission, 2007). Tracing includes all production, distribution and processing stages (European Commission, 2007) and can enhance trust among stakeholders (Sharma et al., 2024). These regulations, together with the initiative of businesses themselves (e.g. Purusottama et al., 2022), could create opportunities to add further value to the coffee product. Conversely, actioning them can pose significant constraints, especially as most coffee businesses are MSMEs. To track foods through the supply chain, significant investments are needed, including in the technological and process domains (León-Bravo et al., 2022). Various informants expressed their concern:

Sensing a potential threat on the horizon, Peru2 recognised the need for swift modifications in the export strategy based on existing capabilities (export experience) to circumvent this threat: “The new (coffee's traceability) regulations will soon take effect. Our firm and the Federation of Coffee Companies perceive more lucrative opportunities in creating niche markets in nearby nations, such as Argentina or Chile.” Other firms (Bolivia24) and their industry are already planning to utilise their developing key capabilities to enable them to adapt to the new demands: “Bolivian coffee has positioned itself as a high-quality product due to its exotic characteristics such as the rarity of its production and the nature of its organic production, helping open up opportunities in interesting and high-value markets.” India13 and Peru13 referred to the increasing interest in their nation's coffee. These firms were growing coffee in micro lots or farms, or using different techniques in fermentation, post-harvest and storage, thus creating unique opportunities based on their product's differentiation potential.

The worldwide increase in coffee consumption and demand was also perceived as exacerbating already significant issues. These issues included the persistence of low-value coffee and low-value business models that perpetuated poverty among MSMEs engaged in growing or “the frontline” of the coffee supply chain. Associated with this point, the decrease in coffee production due to climatic issues (droughts, excessive rain) led to higher coffee prices. This issue also required a different type of sensing that overlapped “reconfiguring” processes aimed at minimising future challenges. Conversely, participants perceived opportunities to achieve higher prices that would compensate for many years of low prices while facilitating further development and competitiveness. Nevertheless, how higher prices could trickle down the supply chain to positively affect grassroots-level firms (micro coffee growers) remained a concern. In particular, this concern was related to the possibility that farmers would switch to other crops due to a year-long pattern of low coffee prices.

Queried about how coffee's growing internationalisation was capitalised upon (Q2, Figure 2), again, five central themes were revealed. First, the higher global demand was perceived to trigger various side effects and growth activities. These activities align with the principle of mobilising resources to address or capture value from emerging opportunities (Lee et al., 2021; Teece, 2011). More specifically, the analysis underlines that mobilisation was illustrated by fostering continuous quality improvements, boosting efficiencies or triggering diversification activities, thus further improving firms' and their industry's capabilities. Observations, including the following, delved into how the operationalisation of existing or newly developed capabilities led to seizing opportunities while helping respond to threats:

These comments resonate with the notion that strategy-making is an antecedent that results in tactical and timely actions, including the design of products and services tailored to individual client demands (Randhawa et al., 2021). Similarly, building brand image or increasing industry knowledge were perceived as critical in capitalising on the currently strong and growing coffee demand, thereby strengthening the firms and their industry:

Seizing was also demonstrated through encouraging closer relationships with other coffee stakeholders, particularly the small growers, to respond to future threats, such as the implementation of new EU regulations. The potential for higher prices can be conducive to building “product trust”, motivating coffee growers or fostering stronger levels of collaboration (Figure 2). The following observations are associated with alliance capabilities and can result in the accumulation of various resources over the long term, including intellectual and financial (Li et al., 2018). Furthermore, these observations relate to reconfiguring processes:

The analysis evaluating the coffee industry's future reconfiguring (Q3, Figure 3) helped ascertain four themes that partly relate to one another in various forms. The first theme was associated with commercially based capabilities needed to extend competitiveness and partly extended some of the points raised regarding “seizing” opportunities and threats. As illustrated, the main reconfiguring concerns revolved around quality and supply consistency and maximising the supply chain. This theme, therefore, encompasses the focus and awareness of potential future market growth. In this scenario, firms need to become nimbler in proactively addressing demand through quality, uniqueness and national, regional or individual farm attributes. Likewise, the need to address sustainable practices goes beyond consumer demands to also extend coffee production's life-cycle and enhance the company's reputation, future marketability and competitiveness. Complementing the above capabilities are innovative strategies. These strategies partly reflect the findings of Weaven et al. (2021), which highlight innovation, knowledge management and firm decentralisation as key reconfiguring capabilities for SMEs facing an economic downturn.

The second theme demonstrates firms' and their industry's vulnerability to external factors (climate issues, pests, labour shortages) that render reconfiguring challenging. For instance, while Colombia2 acknowledged the firm's capabilities based on processes (bean collection and washing) to enhance the coffee product's international competitiveness, radical measures were being implemented to extend coffee production: “The different varieties we have here are very susceptible to the climate … coffee crops are being moved to a higher altitude to avoid diseases common to coffee and increase productivity.”

The third theme suggests links to innovativeness, both in elevating the coffee's image to match or satisfy the palate of global consumers and in learning about production and related issues. As the following selected observations ascertain, one attribute that holds much potential to draw consumers' attention and extend competitiveness is “storytelling”:

Storytelling as a reconfiguring capability could be disseminated in various forms, including digitally. According to Hervé et al. (2021), the digital environment affords a competitive setting that could benefit MSMEs that exhibit an entrepreneurial strategic position.

The final theme, while more peripheral (frequency), has, nevertheless, important ramifications for coffee MSMEs and their industry's reconfiguration and, overall, their industry's future. Moreover, the following verbatim comments provide a deeper context concerning the complexity of reconfiguring, where the links between the supply chain can turn fragile, demanding constant surveillance and capability development and strengthening:

The study makes several contributions and illuminates the path of MSMEs operating in emerging economies and their industry through three stages associated with the DCA clusters. The analysis, which takes a cross-national perspective and considers emerging economies, adds to the extant DCA, MSME and entrepreneurship literature. Furthermore, the developed 14 second-order themes and 13 overarching dimensions deepen the practical understanding of MSMEs' and their industry's journey in a dynamic and changing business environment.

Regarding Q1, the phenomenon affecting the coffee industry, as illustrated by the current and forecast higher coffee consumption and larger markets (Statista, 2024d), implies numerous opportunities and potential benefits. Apart from the findings (Figure 1), onsite visits and meetings with coffee producers, roasters and exporters at an international coffee event in Vietnam provided first-hand demonstrations of how many MSMEs are developing their sensing and other capabilities. These demonstrations resonate with learning, integrating and coordinating (Ho et al., 2024), including through value-adding activities and projects.

The study also illustrates the constraints to maximising or seizing those opportunities. These perceived barriers compel many MSMEs to exercise caution when deciding on steps, such as whether to make or restrict investments or to expand or limit exports. The perceived predicaments affecting the most vulnerable actors in the coffee supply chain, the micro growers, highlight the exacerbation of the coffee industry's predicaments. While many informants' firms can source sufficient coffee, others depend partly or entirely on a steady external supply. Furthermore, numerous smaller growers also contribute to the region's or nation's exports. Indeed, Vietnam4 assessed the number of predominantly micro coffee farmers at 500,000 (Vietnam), while Colombia4 indicated over 540,000 families growing coffee in Colombia, respectively. Thus, the interaction among MSMEs across different levels of the supply chain is paramount; this notion also concerns seizing and transforming.

The different terms and themes emerging from the analysis of seizing (Q2) point to the importance of fostering the development of activities to strengthen MSMEs' and their industry's international appeal and competitiveness. Indeed, only a marginal percentage of the comments point to the significance of achieving higher prices as a key marker to maximise business opportunities. Instead, brand image development, quality consistency, knowledge acquisition, improving efficiencies or diversifying products' range were priorities that illustrate efforts to leverage current and future demand with enhanced competitiveness.

The analysis also makes an important contribution by evaluating reconfiguring (Q3) and depicting the diversity of efforts to address various dilemmas. Quality and supply consistency are central to MSMEs and their industry moving forward, together with maximising the value chain, including by “storytelling” as previously discussed, more sustainable production practices and innovation. Nevertheless, uncontrollable weather, financial or labour issues create unpredictability and suggest strategies that might be costly or challenging to implement. Reconfiguring is also strongly associated with the enhancement of knowledge-based capabilities and much stronger attention to farmers' well-being and partnership.

Complementing the findings, the developed Sankey diagram (Figure 4) delves deeper into the top three first-order responses from each RQ by country, revealing clear homogeneities and contrasts among the coffee MSMEs. For example, Vietnamese company leaders were the most aware regarding the sensing of opportunities and threats (Q1), including those related to product value, demands for higher quality, and price increases. A high percentage of Peruvian and, less so, Colombian firms also appeared to sense the increasing opportunities from product value-adding. Furthermore, Vietnamese, Colombian and Indian cohorts sensed opportunities in the higher coffee prices (Figure 4).

Vietnamese firms also stood out for seizing opportunities while acknowledging threats (Q2), especially compared to Bolivian MSMEs in areas such as building brand image and encouraging continuous quality improvements. This finding can be partly understood by the aftermath of recent negotiations between Vietnam's government and foreign markets. In fact, the Ministry of Industry and Trade (MIT, 2025) acknowledges the sharp increase in coffee exports to the EU since the signing of the 2019 free trade agreement (EVFTA) between the two parties, particularly to Germany, Italy and Spain. To a lesser extent, Colombian and Peruvian firms also perceived the importance of seizing through building brand image.

Regarding ways of reconfiguring (Q3), Indian participants led in adapting to risk management, followed by their Colombian counterparts. Finally, Vietnamese MSMEs (17/35) were much more concerned with achieving supply chain consistency than Colombian MSMEs (3/31). These insights, again, emphasise the need for MSMEs to monitor global coffee markets. In the case of Vietnam, the insights underscore the importance of maintaining high production standards amid rising interest in its coffee in highly demanding markets (MIT, 2025).

The study's outcomes underscore various theoretical implications. The following paragraphs provide conceptual context and a foundation for understanding the subsequent theoretical implications. First, five second-order themes synthesising 16 first-order codes emerge and give rise to as many conceptual dimensions (Figure 1). Phenomena underscoring potential opportunities are understood by the “enabling indicators” dimension, while the “risk and reward indicators” dimension provides context for scenarios that signify opportunities and threats. The “perpetuating cycles” dimension helps explain pervasive issues in the coffee industry, while “blessing or curse” highlights the dilemma represented by a reduced supply due to less production. Finally, the “partnerships to prosper” dimension reveals that although a rather peripheral factor for most participants, strategic alliances could be crucial for the industry's future.

Second, seizing opportunities (Figure 2) is explained first and foremost by the “revitalising catalysts” dimension, where the constant increase in coffee consumption and demand provides a robust foundation. The “reinforcing perceptions” dimension illuminates other seizing-related outcomes, particularly greater appreciation and awareness for coffee products. The “intensifying bonds” relates to the “partnerships to prosper” dimension (sensing) in that more product demand may facilitate network development with consumers, importers or even logistics/transportation firms. The “weighing the outcomes” dimension draws on two second-order themes, with gains and risks from higher dependence on coffee entities and from pursuing sustainable practices, respectively.

Third, four second-order themes and dimensions extend the notions from previous analysis (Figures 1 and 2) and help explain reconfiguring in the coffee industry (Figure 3). The “entrepreneurial reshaping” dimension underscores commercial paths to extend the competitiveness of firms while exploiting opportunities. In turn, the “facing the unyielding” dimension explains the complexities ahead, most of which are out of firms' control. “Knowledge reshaping” emphasises continuous learning and knowledge dissemination, including about the brand to remain competitive. Finally, “collective reshaping” further stresses the importance of the “human side” of coffee production, supporting and positively influencing other stakeholders and networking.

Overall, the evaluation of the DCA to illuminate the study's key themes (RQ4) revealed its usefulness, particularly through the proposed framework (Figure 5). In addition, the developed framework extends the DCA by highlighting and juxtaposing its links with the crafted dimensions (Figures 1-3). The intangible nature of DCs (Kevill et al., 2021) emphasised these juxtapositions, illustrating the inseparability, interdependence or moderating nature of DCs in the context of MSMEs and their industry's internationalisation journey. For instance, sensing threats can be partly understood through the double-edged sword of reduced coffee supply and cooperation to maximise business opportunities (Figure 1). These links, in turn, intersect with building closer relationships with stakeholders (Figure 2) and focusing on the relationship/human side (Figure 3). Moreover, MSMEs' and their industry's vulnerability against external factors highlights the value of exploring, searching and scanning processes (sensing opportunities) to identify shifts in markets or technologies (Khurana et al., 2022).

Highlighted in green colour (Figure 5), the “enabling indicators” and the “risk and reward indicators” dimensions align with the sensing capability. Together with “perpetuating cycles,” the “blessing or curse,” and “partnerships to prosper,” these dimensions help extend the DCA. Moreover, they also illustrate aspects that require more complex approaches to build competitiveness. Similarly, they underscore approaches to minimise the potential of losing such competitiveness in a turbulent and challenging coffee business environment. As previously indicated, the “perpetuating cycles” dimension suggests lingering threats affecting the firms and their industry.

Seizing opportunities can be understood in terms of three dimensions: “revitalising catalysts,” “reinforcing perceptions,” and “intensifying bonds” (Figure 5, highlighted in blue colour). Regarding “intensifying bonds,” the DCA (Khurana et al., 2022; Teece, 2007) highlights the role of different actors within an enterprise's business ecosystem (core) and its periphery, including potential collaborators (customers, suppliers). These efforts, which are crucial to guarantee supply, quality and further product dissemination, are often challenged by market mechanics. Growers' crop choices due to market uncertainties and baristas' product and career expectations are illustrations of these mechanics. Extending these notions, the “weighing the outcomes” dimension implies aspects that require deeper reflection. Colombian informants, for instance, expressed their concern about the over-reliance on coffee associations/federations. Given the current high coffee prices and demand, they were considering discontinuing their membership to go alone, which requires additional capabilities and resources with unknown outcomes. In addition, greater involvement in sustainable practices arises from both proactive and reactive measures, where, again, MSMEs and their stakeholders enter uncharted territory.

The reconfiguring cluster of capabilities is reinforced by the “entrepreneurial”, “knowledge” and “collective reshaping” dimensions (Figure 5, highlighted in red colour). These dimensions contribute to understanding the need to revamp routines and underline knowledge-based and strategy-based principles (e.g. Lee et al., 2021; Yang and Stoian, 2024). They also highlight the need to avoid a potentially harmful path-dependent model (Teece, 2007). The “facing the unyielding” dimension extends the DCA in that MSMEs and their industry are vulnerable to external factors that render their reconfiguration and, by extension, internationalisation competitiveness's future challenging. Moreover, changing routines or other organisational strategies, procedures, or activities goes hand in hand and may prove ineffective at altering the impact of those external factors. Hence, while the “facing the unyielding” dimension is directly related to organisational reconfiguring, its complexity also suggests facing the unknown and the need for more cautious approaches.

The research also has important practical implications. First, perceiving internationalisation in the context of MSMEs and their industry through the 13 dimensions can be invaluable for industry practitioners and also government stakeholders, including trade agencies and policymakers. As many as six dimensions represent markers for understanding more conventional and holistic business approaches. These dimensions include “enabling”, “risk and reward indicators”, “revitalising catalysts”, “reinforcing perceptions”, “entrepreneurial” and “knowledge reshaping”. Nevertheless, other dimensions encourage deeper reflections on the pervasive issues that MSMEs and their associated communities face. The “perpetuating cycles” dimension (Figure 2)conveys the need for efforts to tackle pressing predicaments affecting those in the most vulnerable positions of coffee's supply chain. As Colombia3 shared: “Traders and consumers need to understand that, without growers, there is no coffee”. This dimension, therefore, has profound implications for different stakeholders and implies the urgency to build stronger awareness and appreciation for the frontline or grassroots of coffee production.

The “blessing or curse” dimension also has equally important implications for industry and policymaking stakeholders when considering scenarios. These scenarios encompass weather patterns and ways to diversify and add value to coffee products to avoid the long-term loss of volume-based competitiveness and face the tyranny of low prices for raw products. The “partnership to prosper,” “intensifying bonds,” and “collective reshaping” dimensions highlight the value of collaboration and alliances. At the same time, they suggest “coopetition for competitiveness”, whereby supply chain members work together to achieve common goals. Chandra et al.’s (2021) study underscores the need to develop networks for younger SMEs seeking to internationalise, for instance, seeking support from firm clusters that gained international exposure to attain their internationalisation aims successfully. Dekel-Dachs et al. (2021) refer to “a participatory ecosystem” to stress the importance of taking a more comprehensive view by considering collective efforts.

The “weighing the outcomes” dimension and “facing the unyielding” dimensions have implications for all key stakeholders associated with the coffee industry (government, MSMEs, micro-growers, consumers, the supply chain and industry associations). Indeed, sustainable coffee-growing practices, whether mandated or voluntary, demand significant adaptive steps and investments that could be prohibitive for many businesses, especially micro-sized businesses. Several authors and reports (Berning and Sotirov, 2024; European Union, 2023; Grabs, 2025) highlight the new EU Regulation on Deforestation-free Products (EUDR). This directive is designed to facilitate product traceability and production transparency, extending timber production to also include agricultural products such as coffee. Moreover, from the end of 2024, coffee exports to the EU must be deforestation-free, among other requirements (The Government of the Netherlands, 2024). The role of governments or major coffee importers (e.g., the EU) is crucial, for instance, by providing incentives for growers to adopt such practices. Implications also arise for consumer advocacy groups in filtering information for consumers to share the burden (e.g., higher coffee costs for traceable products).

Equally important is supporting MSMEs with credits or relief packages in case of poor crops or training and education activities for younger generations in farming communities to learn value-added and more innovative approaches. In turn, value creation, which can be supported by dynamic capabilities (e.g., Aho and Uden, 2013), could help mitigate limited/no value-added practices and the gradual abandonment of coffee growing. Observations and anecdotal information from participants helped ascertain the value of diversifying initiatives for some MSMEs beyond the production of specialty coffee. Supporting these initiatives can help those most vulnerable groups remain viable, continue producing quality coffee, and contribute to their community.

This study achieved several objectives. The study focused on internationalisation in the coffee industry in emerging economies based on the experiences of MSME leaders while considering the underpinnings of the DCA. First, the analysis of 131 semi-structured open-ended interviews contributes to the extant MSME internationalisation literature and addresses research gaps. Second, and building on this objective, the study provides value from strategic and policy development standpoints, as demonstrated by 13 emerging dimensions. Many of these dimensions are associated with domains that require the involvement of trade or development agencies to support an industry where MSMEs are the majority. Third, the dimensions contributed to the development of a conceptual model (Figure 5), which advances conceptual understanding and juxtaposes elements of the DCA. Related to this contribution, the study assessed the validity of the DCA, confirming its usefulness and extending it to the domains of sensing, seizing and reconfiguring.

Despite its contributions, the study is not free of limitations. First, while it embraced a cross-national approach, participants from other relevant coffee producers (Brazil, Indonesia, Ethiopia and Kenya) were not included. Likewise, the study does not feature all coffee-growing continents or other potentially insightful coffee-growing regions (e.g. Central America). These limitations suggest opportunities for future MSME studies to consider a wider geographic scope. Secondly, although 131 MSME leaders representing different coffee-producing nations resulted in numerous findings, this number is still limited compared to the existing thousands of coffee ventures. Future research could implement other approaches to elicit interest from a wider participant sample. Third, although the analysis revealed the value of the different dimensions and an associated conceptual framework (Figure 5), these contributions are to be further assessed and their validity confirmed or extended in future research. Finally, the study provides opportunities for future research to operationalise the revealed dimensions by developing scaled items to be assessed quantitatively.

The authors thank the reviewers for their feedback.