SMEs’ International Strategic Groups and Top Managers’ Psychological Characteristics

Ângelo Miguel R. Cabral, Fernando Manuel P. O. Carvalho and José António Vasconcelos Ferreira
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Ângelo Miguel R. Cabral: CeBER, Faculty of Economics, University of Coimbra, 3004-512 Coimbra, Portugal
Fernando Manuel P. O. Carvalho: CeBER, Faculty of Economics, University of Coimbra, 3004-512 Coimbra, Portugal
José António Vasconcelos Ferreira: GOVCOPP, Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, 3810-193 Aveiro, Portugal

Administrative Sciences, 2020, vol. 10, issue 4, 1-22

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.

Keywords: small and medium-sized enterprises; degree of internationalization; cross-cultural management; cultural intelligence; emotional intelligence (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2020
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