Cross-cultural analysis of the global mindset and the internationalization behavior of small firms

Abstract

This research analyzes the influence of a global mindset on the internationalization behavior of Norwegian and Portuguese small firms. It specifically sets out to assess the role of global orientation of the entrepreneur and firm perspectives on the global market. Based on a sample of 354 small firms, we used structural equation modeling to conduct our analysis. The results show the differing importance of a range of factors in explaining global mindset in different contexts. The global mindset of Norwegian entrepreneurs conditions their behavior and international experience, while for Portuguese entrepreneurs it affects the cognitive domain and their technical expertise. Global mindset and global orientation have more relevant effects on the internationalization behavior of Norwegian firms than that of Portuguese firms.

Global mindset, cultural context, and the internationalization of SMEs

“…Thus, these results confirm hypotheses H5 and H6, but not hypothesis H4. These results coincide with Beechler et al (2004); Felício et al (2013); Nummela et al (2004), andYin et al's (2008) studies of the implications of corporate GM factors in firms' orientation in the international market. Gould-Williams (2003) and Fey and Denison (2003) consider that culture and organizational characteristics are very relevant and constrain the firms' actions in the global market.…”

“…These results confirm hypotheses H7 and H8. Felício et al (2013Felício et al ( , 2015 support the factors corroborated in this study, especially CGM. The Portuguese SMEs show the IGM's strong influence on EFFECT (β = 0.86) and KNOWHOW (β = 0.71) and a moderate influence on NETWORK (β = 0.40), as well as the CGM's moderate influence on NETWORK (β = 0.36) and a weak influence on KNOWHOW (β = 0.21).…”

“…Among the factors affecting the formation of commitments, the personal characteristics (e.g., education, experience, and gender) and the organizational characteristics (e.g., organizational structure and group attitudes) deserve special attention (Gould-Williams, 2003). In the multidimensional perspective of the organization, the GM consists of global aptitude (integrates cognition), global knowledge, and global orientation (integrates behavior) (Felício et al, 2013;Kedia & Mukherji, 1999;Yin, Johnson, & Bao, 2008). Global orientation relates to the commitment and effort to understand foreign markets, international networks and the importance of partnerships with other companies (Gupta & Govindarajan, 2002;Nummela, Saarenketo, & Puumalainen, 2004).…”

“…The questionnaire consists on self-response of the top managers of Portuguese, Norwegian, and Lithuanian SMEs. The variables present a seven-point Likert scale, ranging from totally disagree (1) to totally agree (7) (Felício et al, 2013;Kobrin, 1994;Murtha et al, 1998;Talke & Hultink, 2010). Assuming the European Union's criteria for defining small-and mediumsized firms, the global sample contains 526 answers, including 226 Portuguese firms, 200 Norwegian firms, and 100 Lithuanian firms from different sectors of activity.…”

“…Felício, Caldeirinha, Rodrigues, and Kyvik (2013) note the need to understand better the factors that integrate CGM, CGM's relationship with IGM, and the companies' internationalization approach. Other authors recognize the need to understand better the influence of the context (Felício, Caldeirinha, & Ribeiro-Navarrete, 2015).…”