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Grounded from resource-based view, network approach perspective, strategic behaviour theory, innovation theory and capabilities theory, this study proposed a model for rapid internationalisation of SMEs in Malaysia. In-depth interviews were conducted with selected firms in Malaysia to explore and identify the factors contributing to the firms' capabilities, business strategy and rapid internationalisation. This model provides further insight into the factors that leads them to rapid internationalisation. This paper found that technology, firm orientation, networking and founder's background and entrepreneurial characteristics as internal factors together with industry trends and environment are critical determinants of capabilities that lead to business strategy and rapid internationalisation. Apart from that, it was found that innovation plays a crucial role in IT based born global firms; it may not apply to all the firms. One of the firms interviewed has chosen creativity as their key role factor instead of innovation. Lastly, firms that do not require large capital are better off by avoiding external fund to reduce unnecessary financial risk.   Article visualizations:

RAPID INTERNATIONALISATION: THE CRITICAL ROLE OF INTERNAL AND EXTERNAL FACTORS ON CAPABILITIES AND BUSINESS STRATEGY