Cultural intelligence of entrepreneurs and international network ties: The case of small and medium manufacturing firms in Thailand

Does entrepreneurs’ improvisational behavior improve firm performance in time of crisis?

Purpose

This paper examines the effect of improvisational behavior of entrepreneurs on firm performance of small and medium enterprises (SMEs) in Thailand during the economic crisis following the COVID-19 pandemic. The study also explores external factors in terms of competitive intensity and internal factors in terms of financial and human resources possessed by firms that could enhance the impact of improvisational behavior on firm performance.

Design/methodology/approach

A self-administered online questionnaire survey was used to collect the data from the random sample of 312 SMEs in Thailand. Partial least squares structural equation modeling was used to analyze the data.

Findings

The analysis supports the positive relationship between the improvisational behavior of entrepreneurs and firm performance. Moreover, the moderating effect analysis shows that the positive impact of improvisational behavior on firm performance tends to be stronger for firms that encountered a higher level of competitive intensity and for firms that possessed a higher level of financial and human resources.

Originality/value

This research extends the knowledge from prior research by confirming some moderating factors that could strengthen the benefit of improvisational behavior during the crisis.

Cultural learning process: lesson from microhistory

Purpose

The purpose of this paper is to examine the cultural learning process (namely, the development, practice and enhancement of cultural intelligence (CQ)) of a successful entrepreneur – Harold Bixby, a Pan American Airways expatriate, as reflected in the memoir of his experiences in China during 1933–1938.

Design/methodology/approach

This study adopts a microhistory approach as a methodology for studying history and the past while ultimately requiring evaluations informed by the present. This paper first identifies the literature gap on CQ development and the need to study historical accounts of the past in assessing the CQ development process. This study then outlines the four key foci of microhistory as a heuristic for making sense of on-going and past accounts of selected phenomena.

Findings

This paper finds that specific personality traits (namely, openness to experience and self-efficacy), knowledge accumulation through deep cultural immersion (namely, extensive reading/study, visiting/observation and interacting/conversation), critical incident and metacognition all contributed to Bixby’s CQ development, which was a time-consuming process.

Originality/value

The study contributes to debates around cultural learning and historical organization studies by providing a rich, qualitative study of CQ assessment and CQ development through microhistory. This study highlights the importance of cognitive CQ and the function of extensive reading/studying in the process of knowledge accumulation. This paper draws attention to critical incidents as an underexplored way of learning tacit knowledge. Moreover, this study suggests metacognitive CQ can be enhanced through meditative and reflexive teaching and research practices. These findings have significant implications for cross-cultural training programs.

International Strategic Management: A Conceptual Model with Top Managers’ Emotional Intelligence, Cultural Intelligence, and Networking

The conceptual approach in this article follows and analyzes the holistic model of Kuivalainen, Sundqvist, Saarenketo, and McNaughton in 2012, making it analytically fitting to the SMEs’ international strategic groups concerning their international scale and scope. That model, according to our conceptual proposal, needs a methodological readjustment to an effective conformity towards the cross-sectional research. Accordingly, we presented two main considerations. First, we put together a conceptual model, fitted towards the field of top managers’ psychological characteristics as major antecedent of the firms’ international strategy. Second, the proposed conceptual model is methodologically oriented for cross-sectional studies. In relation to the antecedents, we took top managers’ emotional intelligence and cultural intelligence as distinctive capabilities of the firms’ international strategy and as major antecedents of top managers’ networking behaviors. Regarding firms’ international performance as the major conceptual model outcome, a multidimensional approach is taken with financial, strategic, and overall performance. These elements of the international firms are regarded as of major importance within the international firms’ enterprise architecture. Methodologically, we performed a bibliographic review on the fundamental concepts that we present in the model. Concerning the results, we provided a research model that raised a whole set of new leads for research with some proposals for future investigations.

SMEs’ International Strategic Groups and Top Managers’ Psychological Characteristics

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 Effect of Emotional and Cultural Intelligences on Networks' Behaviors in International SMEs: Evidence from Portugal

The major purpose of this research was to study the predictive value of the top managers’ psychological characteristics regarding their networking behavior. In the international business management context of small- and medium-sized enterprises, we took the top managers’ cultural intelligence and emotional intelligence as determinant capabilities to perform better in their external networking. The sample was composed of 307 Portuguese SMEs’ international decision-makers, specifically founders, owners, chief executive officers (CEOs), managers of international activities, international market managers, or commercial managers. The data was collected from 2–30 April 2019 through online surveys directed to the Portuguese decision-makers that were directly responsible for the firms’ international activities. As a data collection instrument, the surveys were pretested and sent by e-mail. The average age of the participants was approximately 50 years old for males and 45 years old for females. We used self-reported measures to assess the different constructs and the hierarchical regression analysis to test our hypotheses. The results showed that cultural intelligence and emotional intelligence were significant drivers of decision-makers’ external networking behavior. A new factor structure concerning external networking behavior was retained. The major results exhibited the predictive value of some cultural and emotional intelligence dimensions over the new retained external networking behavior factors. Therefore, in the international business management context, the capability to adapt to new cultural contexts, as well as the capability to reason about emotions, improved the international decision-makers’ external networking behavior.

Linking improvisational behavior, adaptive selling behavior and sales performance

Purpose

This research examined the relationships between improvisational behavior, adaptive selling behavior and sales performance of direct sellers in Thailand. This research also investigated whether these relationships are moderated by the degree of challenge orientation and sellers' knowledge about the products.

Design/methodology/approach

The data were collected through a survey with sellers from a subsidiary of a multinational corporation located in Bangkok, Thailand (n = 172). Partial least squares–structural equation modeling was used to analyze the data.

Findings

Results from data analysis revealed positive relationships between improvisational behavior, adaptive selling behavior and sales performance. The relationship between improvisational behavior and adaptive selling behavior, as well as the relationship between adaptive selling behavior and sales performance, significantly depended on the degree of challenge orientation and the sellers' knowledge about the products.

Research limitations/implications

The data were collected using self-report measures; the sample was sellers from a single sales organization, and cross-sectional data were used for the analysis. Overall, this study is the exploratory research that does not intend to prove the causal effect of improvisational behavior, but rather to provide new insight on some conditional factors that influence its effectiveness.

Practical implications

It is essential for sales organizations to ensure that their sales force has adequate improvisational skills to handle sales adaptations effectively during unexpected sales situations. Some training may be offered to the sales force to develop these imperative improvisational skills.

Originality/value

The results regarding the moderating effect of challenge orientation and product knowledge provided additional insight to prior research about the potential conditions that influence the effectiveness of improvisational behavior and adaptive selling behaviors.

The influence of cultural intelligence on sales self-efficacy and cross-cultural sales presentations: does it matter for highly challenge-oriented salespeople?

Purpose

This paper aims to examine the effect of the cultural intelligence (CQ) of salespeople, who engage in cross-cultural selling, on the quality of cross-cultural sales presentations (CSSP) they demonstrate. Based on the self-efficacy theory, this research proposes that the effect of CQ on the quality of CSSP is mediated by sales self-efficacy (SSEF). Moreover, this research explores whether the effect of CQ on SSEF and the quality of CSSP can be moderated by the level of challenge orientation (CHO) that salespeople exhibit.

Design/methodology/approach

Survey data were collected from 282 salespeople who work at international tradeshows in Japan, India and Vietnam. Partial least squares structural equation modeling was used for data analysis.

Findings

The results support the significant effect of sales-efficacy that partially mediates the association between CQ and CSSP. Moreover, the analysis of the moderating effect of CHO significantly shows that the positive association between CQ and CSSP is stronger for salespeople who possess low levels of CHO than those who possess high levels of CHO.

Originality/value

From the theoretical perspective, this research contributes to CQ literature by using the self-efficacy theory as a framework to provide a theoretical explanation as to why CQ could allow salespeople to perform better in sales communication with foreign customers. Moreover, this research broadens the knowledge of previous CQ research by showing that CQ might be particularly more important for individuals who lack CHO attitude toward the tasks they perform.

The contribution of cultural intelligence to the interaction involvement and performance of call center agents in cross-cultural communication

Purpose

This paper aims to investigate the contribution of cultural intelligence (CQ) to the interaction involvement and job performance of call center agents in the Philippines.

Design/methodology/approach

Data were collected from 213 call center agents from five business process outsourcing firms in the Philippines. Partial least squares structural equation modeling was used for data analysis.

Findings

CQ was found to be positively associated with the quality of interaction involvement and job performance of the call center agents. Moreover, the positive contribution of CQ to interaction involvement and job performance was significantly greater for those that had less call center work experience than those that had more work experience.

Originality/value

This study indicates that CQ not only matters in face-to-face communication but also is beneficial for non-personal communication, as with telephone conversation for example. In addition, this study showed new evidence –possessing high CQ tends to be more beneficial for agents that have less work experience.

Impact of cultural intelligence on SME performance

Purpose

In environments characterized by high cultural diversity, the ability to understand the cultural makeup of the workforce and the environment would equip business owners with knowledge required to innovate, take risks and proactively change their business offerings. Drawing on the upper echelons theory and action-characteristics model of entrepreneurship, the purpose of this paper is to test how competencies of small business owners, namely, cultural intelligence (CQ) and entrepreneurial orientation (EO) contribute to the performance of their firms.

Design/methodology/approach

Using a sample of 106 small and medium enterprises (SMEs) from the UAE, the data were collected through structured questionnaires and analyzed using partial least squares–structural equations modeling.

Findings

Results showed that CQ of the SME owner has a positive effect on firm performance (FP) through the mediating role of EO. Also, CQ of the SME owner was found to have a direct effect on FP, thus asserting its importance as a valuable competency that SME owners need to cultivate when operating in a multicultural environment.

Practical implications

Skills of the top managers greatly influence the choices and decisions they make, which in turn impact the effectiveness of their organizations. This study focuses on the role of managerial competencies that need to be cultivated among SME owners that would contribute to the growth of their firms.

Originality/value

This research studies the role of an individual’s cross-cultural and entrepreneurial competencies that enable the organization to achieve higher performance.

Entrepreneurial orientation and international performance: The moderating role of cultural intelligence

Although the characteristics of top managers is an important factor associated with competitive advantage, and managerial resources are recognized as a firm’s major resource, there is limited research concerning the role of top manager’s capabilities in the relationship between entrepreneurial orientation and international performance. Based on the upper echelons perspective and resource-based view, the present study aimed to analyze top manager’s cultural intelligence as an internal contingency of the relationship between entrepreneurial orientation and international performance. The study’s theoretically derived research model was tested using survey data obtained from 206 small- and medium-sized enterprises. The findings suggested that the extent to entrepreneurial orientation was related to a firm’s international performance was contingent on the level of three dimensions of cultural intelligence (metacognitive, cognitive, and motivational). Furthermore, as the level of all four cultural intelligence dimensions of top managers increased, the relationship between entrepreneurial orientation and international performance increased in strength. The implications of the present findings for future research and practice were discussed.

Job satisfaction and organizational commitment

Purpose

The aim of this study is to examine the structural relationship between Spector’s nine job satisfaction facets (supervision, nature of the work, communication, contingent rewards, co-worker, fringe benefits, payment, promotion and operating procedures), organizational commitment facets (normative commitment, affective commitment and continuance commitment) and the influence of employees’ years of experience on satisfaction and commitment relationships. Owing to the nature of the industry, employee satisfaction, retention and commitment in Information and Communications Technology-Small and Medium-sized Enterprise (ICT-SME) is a matter of great concern.

Design/methodology/approach

A total of 256 valid questionnaires were collected among employees of Information and Communications Technology-Small and Medium-sized Enterprises (ICT-SMEs) to evaluate the measurement and structural model using partial least squares path modelling approach.

Findings

The findings indicate that payment, promotion, fringe benefits, co-worker, communication, operating procedures and nature of the work are positively associated with affective commitment. Furthermore, payment, promotion, fringe benefits, supervision, contingent rewards, operating procedures and nature of the work have a positive relationship with normative commitment. Considering employees’ years of experience as a categorical moderating variable, the results of partial least squares multi-group analysis show how the discrepancies between employees’ years of experience influence their level of commitment.

Originality/value

This study reveals that employees’ affective and normative commitments are positively associated and their continuance commitment is contingent upon their affective commitment, and not normative commitment. There are only three factors, i.e. promotion, fringe benefits and operating procedures, that are conductive to employees’ continuance commitment. Contributions, implications and limitations of the study are discussed.

The role of information alignment and entrepreneurial traits on SME internationalization

Purpose

– The paper aims to explore the internationalisation decision-making of small- and medium-sized enterprise (SME) owner/managers. Specifically, structural alignment theory (SAT) and regulatory focus theory (RFT) are utilised to examine the concept of opportunity recognition in the context of internationalisation choices.

Design/methodology/approach

– This paper is conceptual in nature, and an integrative cognitive model of internationalisation choice decisions is developed based on SAT and RFT, underpinned by a critical review of the international entrepreneurship (IE) literature.

Findings

– Scenarios are identified in which the structure of available information may affect the decision-evaluation process in terms of cognitive resource requirements. Further, the SME owner/manager’s motivational goal orientation is suggested to moderate the role of the information structure in line with IE literature. A conceptual model and propositions are presented.

Research limitations/implications

– The conceptual model and the propositions arising from the discussion in this paper offer new directions of research to explore SME internationalisation.

Originality/value

– This paper offers a cognitive perspective of SME internationalisation. This paper offers insights for policymakers, SME owner/managers, practitioners and researchers alike. For internationalisation decisions, this paper highlights the potential impact of the structure of information that is made available to SME owner/managers by industry or policy bodies; further, the moderating influence of motivational goal orientation may inform policy on how information should be presented to SME owner/managers to aid their decision-making.