SMEs’ International Strategic Groups and Top Managers’ Psychological Characteristics

Abstract

This research analyzed the small and medium-sized enterprises’ (SMEs) international strategies concerning the scale and scope of the international activities. The major purpose was to study the international top managers’ psychological characteristics as distinctive capabilities within the defined international strategic groups. The international top managers’ cultural intelligence and emotional intelligence were taken as main characteristics to act in the international business environment. Therefore, we took as the main motivation to perform the present investigation the need to understand which psychological characteristics may help the international top managers to pursue high degrees of internationalization in their firms. This study was conducted in Portugal, and the sample was composed of 307 Portuguese SMEs’ international top managers directly responsible for the firms’ international decisions. The multinomial logistic regression method was used to test the hypotheses. The firms were classified into three international strategic groups based on the internationalization scale and scope. The degree of internationalization reflects that combination, creating groups with a high, medium, and low international exposure. The main result indicates as a distinctive capability, the international top managers’ cultural intelligence within the firms that exhibit a high international strategic positioning. Regarding the main contributions, this article contributes to the bodies of knowledge of international SMEs, cultural intelligence, emotional intelligence, and networking. This study also contributes to upper echelons theory and the resource-based view.

The impact of human, social, and psychological capital on academic spin-off internationalization

“…The impact of psychological factors in the internationalization of companies shows how the personality, abilities, and internal psychological factors of managers can constitute relevant elements (Cabral et al 2020;Wach and Głodowska 2021). This analysis has been addressed in research such as that by Lai et al (2017), according to which the internal psychological factors of senior management exert a greater influence on the strategic decision to enter foreign markets than do external factors.…”

“…Other research, such as that by Maitland and Sammartino (2015), considers that the decision on internationalization is based on managers' cognition, rather than on their demographic characteristics (Sapienza et al 2006;Cabral et al 2020;Wach and Głodowska 2021). Furthermore, Anwar et al (2018) show that the personality of managers is closely related to the degree of internationalization of their companies.…”