Abstract

Traditional sources of sustainable competitive advantage are very rare in today's heterogeneous and hypercompetitive global business environment. This article identifies and illustrates three dynamic capabilities - sensing local opportunities, enacting global complementarities, and appropriating local value - by which MNEs in these markets, strategic agility is a meta-capability that enables them to create and deploy these three capabilities in a dynamic balance over time. Doing so demands embracing the tensions between these capabilities effectively.