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

Avaz Mammadov () and Andreas Wald ()
Additional contact information
Avaz Mammadov: University of Agder
Andreas Wald: University of Agder

Management International Review, 2025, vol. 65, issue 1, No 6, 115-144

Abstract: 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.

Keywords: Cultural intelligence; Emotional intelligence; Global mindset; International management; Internationalization; SME (search for similar items in EconPapers)
Date: 2025
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11575-024-00561-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:manint:v:65:y:2025:i:1:d:10.1007_s11575-024-00561-5

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/11575

DOI: 10.1007/s11575-024-00561-5

Access Statistics for this article

Management International Review is currently edited by Michael-Jörg Oesterle and Joachim Wolf

More articles in Management International Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().