The Effects of Cultural Intelligence and Psychic Distance on Absorptive Capacity and Export Performance

For many firms, exporting is one of the most common forms of global market penetration strategy. However, how cultural intelligence and psychic distance can impact on export performance have not reached consensus. This study aims to identify the effects of organizational cultural intelligence and psychic distance on export and the mediating effects of absorptive capacity and organizational innovativeness. Totally, 318 data were collected from SMEs companies in Taiwan through paper-based questionnaires. Partial Least Square (PLS) was used to analyze collected data. The results indicate that: (1) cultural intelligence has a positive effect on absorptive capacity, organizational innovativeness, and export performance; (2) psychic distance has a positive effect on absorptive capacity and export performance; and (3) absorptive capacity partially mediates the effects of cultural intelligence and psychic distance on export performance while organizational innovativeness partially mediates the effect of cultural intelligence on export performance. This study contributes to export literature by providing two important antecedents and mediators of export performance. Based on these results, marketing professionals should pay more attention on the influences of cultural intelligence and psychic distance on absorptive capacity and export performance.