Cognitive styles and dynamic managerial capabilities: implications for SMEs in a transition economy

Abstract

PurposeThe dynamism of competition in international markets requires managers to react accordingly and ensure the firm's survival and competitiveness. This study examines the impact of cognitive styles and dynamic managerial capabilities (DMC) on a firm's international performance and the mediating role of these capabilities in the relationship between cognitive styles and international performance.Design/methodology/approachThis study adopts a quantitative cross-sectional research design, employing a sample of 306 firm owner-managers from exporting companies in Kosovo.FindingsThe findings suggest that managers' cognitive styles positively influence firm international performance, including their impact on DMC. Results also indicate that only managerial cognition mediates cognitive styles' effects on a firm's international performance, compared to managers' social capital.Originality/valueIn this study, the authors contribute to the literature by integrating cognitive styles with DMC in a transition country. Moreover, the authors demonstrate that DMC mediate the impact of cognitive styles on the firm international performance.