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The Role of Cultural Intelligence and Emotional Intelligence in the Internationalization of SMEs: Does Global Mindset Matter?

Author

Listed:
  • Avaz Mammadov

    (University of Agder)

  • Andreas Wald

    (University of Agder)

Abstract

Small and medium-sized enterprises (SMEs) increasingly face the imperative of internationalization to remain competitive. Owner-managers of SMEs, who predominantly act as decision-makers, encounter multifaceted challenges in navigating cross-cultural complexities. These challenges can pose significant obstacles to successful expansion into international markets, and prior research has often overlooked the role of owner-managers in SME internationalization models. This study investigates how specific managerial competencies, namely cultural intelligence (CQ) and emotional intelligence (EQ), influence the degree of internationalization (DOI) of SMEs. Additionally, it examines the mediating role of owner-managers’ global mindset (GM) in this relationship. Based on upper echelons theory, which posits that top managers’ characteristics shape organizational outcomes, the study reveals how these individual-level competencies impact SME internationalization efforts. Data were collected from 399 SME owner-managers in Norway and Azerbaijan, utilizing structural equation modeling to test the hypothesized relationships. Results indicate that higher levels of CQ and EQ among owner-managers positively influence the DOI of SMEs, with GM partially mediating these relationships. This study enhances the body of knowledge on CQ, EQ, and SME internationalization by introducing a comprehensive DOI measurement approach that considers both the proportion and geographic dispersion of foreign sales. Furthermore, this research addresses a significant gap by incorporating GM into the explanation of the SME internationalization process. Finally, it extends theoretical understanding by exploring the often-overlooked application of upper echelons theory to the context of SME internationalization, highlighting the crucial role of specific managerial competencies as drivers of internationalization.

Suggested Citation

  • Avaz Mammadov & Andreas Wald, 2025. "The Role of Cultural Intelligence and Emotional Intelligence in the Internationalization of SMEs: Does Global Mindset Matter?," Management International Review, Springer, vol. 65(1), pages 115-144, February.
    • Handle: RePEc:spr:manint:v:65:y:2025:i:1:d:10.1007_s11575-024-00561-5
    DOI: 10.1007/s11575-024-00561-5
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