Cross-cultural entrepreneurial competence in identifying international business opportunities

Abstract

International operations are increasingly a prerequisite for survival, competitiveness and growth of entrepreneurial ventures. In Europe, where small and medium-sized enterprises and entrepreneurs play a significant role in the economy, they operate in a complex environment affected by diverse and intense pressure of national cultures. Responses of entrepreneurs in meeting these challenges can be supported by developing a deeper theoretical understanding of variables pertinent to international entrepreneurship. This paper contributes to the theoretical understanding of the process of international opportunity identification by entrepreneurs. We look at the influence of the cross-cultural environment on the cognition, behaviour and the effectiveness of decision-making by international entrepreneurs at identifying cross-border opportunities. We then investigate the role of cross-cultural competence in moderating entrepreneurial "opportunity" competencies and entrepreneurial self-efficacy and, therefore, the overall effectiveness of international opportunity identification. Finally, we define cross-cultural competence in international opportunity identification and conclude by discussing implication of this study for practitioners and researchers. © 2008 Elsevier Ltd. All rights reserved.