International business decisions and manager’s cognitive style: opening up research avenues from cognitive behavioural strategy

Abstract

The topics of internationalization and cognitive styles have been investigated extensively in an unrelated manner over decades. From the latter psycho-sociological approach, it can be stated that the decision maker cognitive characteristics have an impact on the organization's strategic decisions. Meanwhile, the former perspective has emphasized the issue of internationalization as a process that strongly relies on gaining experiential knowledge. This conceptual paper aims to enlighten the influence and interaction of the manager's cognitive style on international business (IB) decisions of small-and-medium enterprises (SMEs). Two main theoretical approaches explaining the internationalization process of SMEs are compared: the Uppsala gradual model and the International New Ventures-INVs approach. The main research question is whether there is a cognitive style that always outperforms the others when it comes to the internationalization pattern the SME follows, or whether the optimal style is dependent on the task and the context (i.e. the pattern of the internationalization the SME choses). Some propositions and research avenues are suggested as new findings are continuously emerging relative to how the human brain works in this promising intersection labeled as organizational neuroscience in the quest of the micro-foundations of the theory of internationalization.

The Influence of Organizational Ambidexterity on SME Speed of Internationalization

“…This article contributes to a better understanding of the determinants of the SME's speed of internationalization by analysing the organizational orientation in terms of international ambidexterity and the use of the manager's cognitive systems. The inclusion of the manager's cognition in international business is very scarce (González-Loureiro & Vlačić, 2016;Maitland & Sammartino, 2015) and the combination of both topics can yield additional insights to answer the question of why some SMEs can speed up its international growth. Furthermore, previous studies returned doubts on the positive or negative consequences of ambidexterity for the short-term performance of SMEs (Ebben & Johnson, 2005;Gulati & Puranam, 2009;Lubatkin et al, 2006).…”

“…It also needs the use of detailed analysis to check for potential inconsistencies stemming from Sys-X, a conscious reflection based on facts, which is related to the use of Sys-C. In fact, experiential managers are characterized by greater creativity and capacity to solve problems based on experiential knowledge (González-Loureiro & Vlačić, 2016). As such, they will be able to detect opportunities more readily than rational managers will, once the analytic cognition (Sys-C) is more conservative and risk-averse, needing a detailed and conscious analysis to reach a decision.…”

Who creates international marketing agility? Diasporic agility guiding new market entry processes in emerging contexts

“…International marketing strategies are linked to the mindsets of the respective managers (Levy, Beechler, Taylor, & Boyacigiller, 2007; Nummela, Saarenketo, & Puumalainen, 2009; Sousa & Bradley, 2006; Sousa & Lengler, 2009) just like innovation strategies can be very open, multi‐actor shaped processes, or simply imitative but effective strategies within the firm (Lee et al, 2010; Shenkar, 2010; Teece, 2010). Previous studies have pointed out that the managers' psychic distance influences the firms' international marketing strategies (Sousa & Bradley, 2006), which further underlines the significance of the people who are involved in knowing, shaping, deciding, and executing the firm's strategy for international marketing (González‐Loureiro & Vlačić, 2016; Sousa & Lengler, 2009). Thus, we claim that the nature of actors involved is crucial for the outcome.…”

A state-of-the-art review on international strategic alliances: do we really know what we are researching

“…Hence, the motives, modes, and ways of managing ISAs may change. Previously, managerial characteristics were identified as focal elements in international business decision making Accepted Manuscript (Vlačić et al, 2020;González-Loureiro & Vlačić, 2016). The interplay between the opportunity-driven strategic management of the international strategic alliances and global environment is highly relevant for understanding the outcome of ISAs.…”