Key Factors Influencing Managerial Global Mindset

Running head: KEY FACTORS INFLUENCING MANAGERIAL GLOBAL M INDSET
KEY FACTORS INFLUENCING MANAGERIAL GLOBAL MINDSET
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KEY FACTORS INFLUENCING MANAGERIAL GLOBAL MINDSET1
Introduction
The success and profitability of and international business organization depends on
the decision making skills of the managers. This decision making process includes the
strategizing of business procedures in accordance to several external factors operative in
various countries. However, efficiency in strategizing international business affairs requires
the managers to develop a global mindset. The managers of international business
organizations require to have a clear perspective on the different aspects that contribute to the
productivity of the organization. These perspectives can be obtained through cognitive skills,
interpersonal skills and an affective commitment towards the organizational conduct and
values (Newman, Kiazad, Miao and Cooper 2014). Moreover, the mindset of the managers
also help in motivating several aspects of international business like foreign direct
investment, foreign market entry modes, foreign direct investment locations and
implementation of strategies for international competition. This study aims to analyze the
factors affecting the development of a global mindset in managers and how it impacts the
strategizing procedures in international business.
Literature Review
Overview
The literature review provides an analysis of the key factors that contribute to the
development of a global mindset in managers of international business organizations. These
factors include cognitive, affective and interpersonal abilities. Moreover, such factors also
determine the ability of the managers to strategize important aspects of international business
like foreign direct invest, its location, foreign market entry modes and tackling of
international competition.

KEY FACTORS INFLUENCING MANAGERIAL GLOBAL MINDSET2
Management global mindset
According to Forsgren and Johanson (2014), in the age of globalization, business
organization require to operate efficiently across borders and cultures. This proves the
significance of the development of a global mindset among the managers so that they can
adapt to the changing needs and requirements of the business procedures conducted
throughout several countries. Global mindset in management enhances the ability of the
business organization to identify the variations in cultures and customs across the world. This
allows the management to strategize adequate means to collaborate workforce and improve
the productivity of multi-cultural employees and workers operating within the organizational
structure. Cross-cultural communication is an imperative when it comes to international
business and this requires the leaders or managers of these organizations to develop the
ability to understand and interpret the needs and problems of the workers and employees as
well as the challenges that might be faced by the organization in this aspect. It is the capacity
of the managers to influence the employees, leading to the proper strategizing in international
business, through an appropriate understanding of the existing cultural differences among the
various stakeholders of the organization. Therefore, global mindset in management ensures
the prevention of disconnect among the agents of the business organization and helps in
building a trusting relationship among them (Story, Barbuto, Luthans, and Bovaird 2014).
Factors affecting management global mindset
There are various factors that help in ensuring that the managers involved in
international business can successfully develop a global mindset for the benefit of the
organization. These factors are personal to them and involves an application of a particular
set of skills pertaining to cognition, affectivity and interpersonal communication.

KEY FACTORS INFLUENCING MANAGERIAL GLOBAL MINDSET3
Cognitive skills
Cognitive skills refer to the ability to understand situations and problems and think of
methods to solve them. According to Flin and Maran (2015), the capability to undertake a
learning of new skills and adapting to it also falls under the realm of cognition. Cognition is
an important aspect in management as it determines the ability of the leaders to understand
and assess information and data related to projects as well as the abilities of the employees.
Cognitive abilities also allow the managers to employ means to optimize productivity by
putting their assessed information to use and allocating available resources to their maximum
capacity. The role of cognition in strategizing decisions for international business lies in the
managers’ ability to acquire knowledge about the business procedures and assess the
experience of the employees so that they can be utilized to manage the challenges that may be
faced by the organization (Osland, Ehret and Ruiz 2017). The cognitive abilities of the
managers also helps in ensuring that the aim s and objectives of the business organization are
met in a cost effective method.
Affective commitment
As opined by Mercurio (2015), effective commitment refers to the attachment of the
managers and employees to the values and ethics that underline the activities of any business
organization in a local or international ground. Affective capacity in the managers plays a key
role in determining the direction in which the strategies and decisions for the organization
will be made. Emotional resilience is an important quality that must be inculcated by
managers of international business organizations to ensure that they can efficiently handle
difficult situations and manage the challenges that may arise within the scope of the business
procedures. For this, the affective commitment in managers plays a significant role as it
allows them to prioritize the objectives of the organization and handle stress and changes