Global mindset and the internationalization of small firms: The importance of the characteristics of entrepreneurs

Abstract

Despite being a relatively new concept, the importance of the global mindset is already well-documented. So far research has primarily focused on multinational companies and therefore the operationalization of the concept is still a work in progress. Recognizing the importance of entrepreneurs in small companies, yet mindful of the gaps that exist, this paper addresses the factors that constitute the global mindset and their influence on the internationalization of small Portuguese companies. Using information-processing theory through a quantitative, surveybased study and Structural Equation Modeling (SEM), the results show the importance of the characteristics of both entrepreneurs and firms in explaining the global mindset, and confirm the impact they have on internationalization behavior. The entrepreneur's level of education, their satisfaction with company performance in the domestic market and the potential for growth in the domestic market all affect the global mindset model. The conclusions are useful for entrepreneurs and national authorities aiming to successfully implement internationalization practices, given the role of the global mindset in exploring global business opportunities and in the global success of companies. Replication of the research in different contexts is essential for the wider generalization of the results.

Global mindset, cultural context, and the internationalization of SMEs

“…In general, GM studies focus on managers (Arora, Jaju, Kefalas, & Perenich, 2004;Gupta & Govindarajan, 2002) and address the international experience, professional training abroad, and foreign language skills for the development of a GM. In addition to the individual global mindset (IGM), understanding the corporate global mindset (CGM) factors is very important, because a company has routines, produces products and services, and develops multiple activities that interact with very different cultural realities that require adaptation and suitable decisions for success (Felício, Caldeirinha, & Rodrigues, 2012).…”

L’effet réseau sur la délocalisation des PME1

“…Bien que les logiques de ces entreprises soient différentes en raison des spécificités inhérentes à ce type de structure telles que le rôle majeur du dirigeant (Cabrol et Favre-Bonté, 2011 ;Marchesnay et Messeghem, 2011 ;Felicio et Caldeirnha, 2012) et l'importance de la proximité (Torres, 2004 ;Julien, 2002), cette stratégie leur permet, à l'instar des grandes entreprises, d'améliorer leur compétitivité en réduisant les coûts et en se rapprochant de clients internationaux (Di Gregorio, Musteen et Thomas, 2009). …”

“…Il est à noter qu'en contexte de PME, le dirigeant joue également un rôle primordial : sa personnalité, ses motivations, son expérience et son réseau personnel peuvent être détermi-nants dans le choix d'une délocalisation (Cabrol et Favre-Bonté, 2011 ;Felicio et Caldeirnha, 2012).…”

Contextualization of Evolving Patterns in the Internationalization of Small Firms

“…International vision and attitude (Kyvik et al, 2013; 48 2. THEORETICAL FRAME Ruzzier et al, 2006), human capital with international knowledge and skills (Felício et al, 2012;Evers and O'Gorman, 2011), and TMT's social capital (Zhou et al, 2007;Ellis, 2011), are the three important elements identified in earlier literature at this level. …”

“…Means from the individual level (entrepreneurs and TMT) (Ruzzier et al, 2006;Rialp et al, 2005;Andersson and Wictor, 2003) Organiza0onal,level,, Individual,level,, Organiza0onal,level,, Individual,level,, Organiza0onal,level,, Individual,level,, (Felício et al, 2012;Evers and O'Gorman, 2011)) (c) Social capital of TMT (e.g., international related networks and contacts (Zhou et al, 2007;Ellis, 2011)) 2. Means from the organizational level (e.g.…”