Managerial Cultural Intelligence and Small Business in Canada

Abstract

This study of 122 executives in Canadian small businesses examined the extent to which managerial cultural intelligence was a contributing factor to the organizational effectiveness of small businesses. We found that the cultural intelligence of small business managers engaged in international business was higher than that of small business managers in domestic-only firms. After controlling for firm entrepreneurial orientation, we found that managerial cultural intelligence was positively related to corporate reputation and employee commitment, but not to the financial performance of small businesses. Further, these relationships were similar for small businesses that conducted international business and those that were domestic-only. For internationalized small businesses, managerial cultural intelligence was not influenced by the international scope of business activities. One implication is that cultural intelligence is a managerial competency that is not restricted to international business contexts. Directions for future research on cultural intelligence are identified.