The earth is evolving and is evolving into a world with practically zero borders due to globalization as well as the rapid advancement of technology, making intercontinental business simpler for most people, specifically for small and channel enterprises (SMEs). The function of SMEs has been developing over the years and is a very important part of the economy because enterprises whom employ less than 250 people represent 00% of all companies in the EU. SMEs can usually benefit from the less costly ways of conducting business and be even more competitive today than ever before. Lee et approach. (2012) have concluded that, instead of presenting high risk of failing for SMEs, internationalization truly provides opportunities that can maximize survival. Internationalization can be defined as “the foreign market servicing approach of a firm”.
Progress opportunity, fresh knowledge, use of new resources, larger industry opportunities and long-term profitability are only some of the various advantages that internationalization provides. There is quite some study into what factors impact the success and endurance of SMEs when they choose to internationalize. Studies have shown that not only at the. g. firm’s characteristics and resources will be substantial, but also the very best management team’s characteristics, educational background and features. However , significantly less attention has been given to the mindset behind these top managing teams, CEO’s or owners, even though that there were earlier studies that did admit how important persona can be in the process of internationalization. There has been zero research in the role the top Five personality traits have inside the internationalization process of SMEs in either created markets or emerging marketplaces.
Earlier research has displayed that the Big Five personality traits, openness to have, conscientiousness, extraversion, agreeableness and neuroticism (OCEAN), have an important impact on firms’ performance, profitability and development as well as a business survival. Lai et ‘s. (2016) possess concluded that psychological factors like overconfidence have got a significant affect on the selection of foreign industry entry mode. Upper echelons theory declares that firm performance is usually partially believed by leading management team’s characteristics, at the. g. demographics factors. In accordance to Strophe et ‘s. (2017), the external elements of international markets have less affect on the amount of internationalization than the top supervision team’s very own psychological elements has. This is a valid motivation to consider how the Big Five nature affect the choice of internationalization simply by managers.
The aim is to take a look at how the different personality traits effect a manager’s commitment for the internationalization procedure directly simply by researching psychological studies and also international entrepreneurship research. The hyperlink between the Big Five nature and internationalization will be associated by looking intended for aspects of every separate feature that has already been studied, to try and find a interconnection. As stated just before, there are actually numerous studies analyzing just how managers’ qualities and features affect their very own choice of international market entry mode, although only a pick academics that have suggested that personality traits, in such a case the Big Five, could have an impact on how companies tend to internationalize.