This paper aims to identifying managerial mindset by constructing a cognitive or integrative geocentrim index. Going international is either an extension of successful domestic business operations or a requirement for remaining competitive. It is imperative for firms to be a part of the international market. Therefore, firms should want to know how internationalized are their operations. To gain such knowledge requires measuring the degree of internationalization, which, in turn, is related to “managerial mindset”.
Based on literature review, four dimensions of integrative geocentrism were identified, which also dealt with content validity of the index. A questionnaire was constructed reflecting these dimensions. The sample of 59 managers, whose jobs were involved in international business, completed the questionnaire. Reliability was established using Cronbach’s alpha.
The construction of this index was an attempt in providing an objective way of measuring managerial mindset, which could be a way of measuring the degree of internationalization of firm.
Cronbach’s alpha was used to measure the reliability of the index. It was within the acceptable range. Future research could expand upon this index by improving its reliability and expanding the range of question items.
Often, a question is posed about the international standing of a firm, either by the managers inside the firm or by others outside. Almost always, the answer to such a question is an opinion and a guess. The application of this index enables firms to respond to such a question objectively.
Information on the mindset of multinational company (MNC) managers would be useful in identifying how to overcome the shortcomings.
This index is useful to MNC as a measure of internationalization progress. The benefits of the index are twofold. First, it generates an understating about the mindset of managers. Second, it identifies needed changes and corresponding necessary actions.
Fatehi, K. and Ghadar, F. (2014), "A measure of international managers’ mindset", International Journal of Commerce and Management, Vol. 24 No. 4, pp. 321-333. https://doi.org/10.1108/IJCoMA-01-2012-0006
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