Purpose: The study examines how strategic leadership and dynamic capabilities jointly influence the internationalization outcomes of small and medium-sized enterprises (SMEs), with emphasis on how leadership practices and adaptive capabilities interact in shaping global performance.

Methodology/Design: A qualitative research design was adopted, using in-depth interviews with 20 SME managers involved in international markets. The data were thematically analysed to identify patterns related to leadership practices, dynamic capability development, and international performance outcomes.

Findings: The results show that strategic leadership drives international expansion through vision setting, decision control, and capability building. SMEs also demonstrate dynamic capabilities through opportunity sensing, rapid opportunity seizing, and resource reconfiguration. A strong interdependence exists between leadership and dynamic capabilities, where leadership enables capability development and capabilities support effective international execution.

Implications: The study suggests that SME international success depends on aligning leadership direction with adaptive organizational capabilities. Managers should strengthen strategic foresight, enhance decision agility, and continuously develop internal learning systems. Policymakers should also support leadership development and capability-building initiatives to improve SME global competitiveness.