LEADERSHIP STRATEGIES OF A MULTINATIONAL ENTERPRISE IN THE WEST

LEADERSHIP STRATEGIES OF A MULTINATIONAL ENTERPRISE IN THE

WEST

Section 1: Foundation of the Study

Diverse international business strategies play a significant role in the success of

multinational enterprises (Fung, 2014). Recent advances in technology and government

practices allow more companies than before to expand internationally (Brush, Edelman,

& Manolova, 2015). Although international opportunities continue to develop, the

process of internationalization is difficult because some leaders lack strategies to grow

their companies through global expansion (Shah, Javed, & Syed, 2013). The decision to

expand internationally ultimately relies on the availability of resources and the

capabilities of a firm (Brush et al., 2015).

Background of the Problem

As business leaders expand their existing operations to different countries, they

inherit the challenge of adapting to local business conditions and practices (Tuleja, 2014).

Business leaders that expand internationally recognize quickly that success in their local

markets may not be as effective in foreign markets (Menon & Narayanan, 2015; Paletz,

Miron-Spektor, & Lin, 2014). In the United States, business agreements abide by

common legal regulations that may not translate, for example, in Middle Eastern

countries (Mihoubi, 2011). The basis of business transactions in these countries focuses

more on building a solid relationship first before contractual agreements (Bouyoucef &

Chung, 2015). As MNEs continue to internationalize, they suffer from limited

managerial skills and available resources (Ciszewska-Mlinaric & Mlinaric, 2010).

International experience and knowledge play a pivotal role in expanding abroad (Schlägel

& Sarstedt, 2016).

International business strategies and company performance are important

elements that shape relevant scholarly research on internationalization processes (Chan,

Finnegan, & Sternquist, 2011). In the past, researchers focused on either the internal

processes of a company or the external impacts that effected the performances of

international firms (Nachum, 2000; Pan, Li, & Tse, 1999). In more recent times,

researchers focused on the combination of internal and external characteristics that

impact company performance in addition to available resources and capabilities (Chan et

al., 2011). In this study, a more in-depth analysis of effective business strategies by

successful international entrepreneurs developed more precise measures of the dos and

don'ts during global expansion.

Problem Statement

Some firms consider international expansion as an opportunity for growth, but

some executives lack the knowledge to overcome high costs and uncertainties (Hsu,

Chen, & Cheng, 2013). In 2011, the worldwide employment rate from multinational

firms increased by 1.5% and is continuing to grow (U.S. Department of Commerce

Bureau of Economic Analysis [CBEA], 2013). The general business problem was that

business leaders seeking to expand internationally do not have international business

knowledge. The specific business problem was that some leaders lack strategies to grow

their companies through international expansion.

Purpose Statement

The purpose of this qualitative single case study was to explore strategies used by

multinational executives to grow their companies through international expansion. The

target population was business executives of a successful MNE that had a corporate

headquarters in the West Bank in Palestine. The results of this study is expected to

contribute to social change by helping MNEs in the West Bank grow, creating

employment opportunities, which could improve the residents’ living standards. MNE

growth in the West Bank could lead to increased profits, which could be used to improve

infrastructure and government services for all residents.

Nature of the Study

In qualitative research, the researcher sets up the context of the study through

interpretation and knowledge from participants’ viewpoints (Cooper & Endacott, 2007).

The data collection process is in a natural setting where the focus lies on the consistency

and quality of the information collected (Berazneva, 2014). Conversely, the quantitative

research method involves an evaluation of logical and mathematical aspects of data for

primary knowledge (Smith, 2014). The mixed method is a combination of both

qualitative and quantitative methods, which can help develop, valuable insights but

cannot be understood solely with a qualitative or quantitative approach (Venkatesh,

Brown, & Bala, 2013). The nature of the study aligned with the qualitative research

method versus the quantitative and mixed methods because the context of the research

was primarily exploratory (Yin, 2014). As the purpose of this study was to investigate in-

depth data, the qualitative research method was the most appropriate approach for

discovering effective international business strategies.

I considered four, primary qualitative research designs for this study:

phenomenology, narrative, ethnography, and case study. The phenomenological approach

was not suitable for this study because the goal was not to identify the essence of human

experiences about a phenomenon (Cooper & Endacott, 2007). The narrative approach

was not suitable for my study because the goal was not to understand the individual lives

of the participants (Richard & Morse, 2012), but to explore the international business

strategies they used to expand their company. The ethnographic design involves

observations with some degree of participation and an understanding of cultural

guidelines (Cooper & Endacott, 2007). The ethnographic approach was not suitable for

this study because the objective was not to participate in the respondents’ work activities

to obtain data. The preferred design for this research was the case study approach.

Business researchers use the case study design (Zivkovic, 2012) where the focus is on

understanding the social and technical aspects of the phenomenon being studied. In the

case study design, the researcher can incorporate different perspectives from multiple

participants to collect rich data (Yin, 2014). The case study design was the appropriate

approach for this study because it allowed me to collect data from multiple sources to

gain a deeper perspective in exploring and addressing the specific business problem.

Research Question

What strategies do business leaders use to grow their companies through

international expansion?

Interview Questions

1. What motivated you to expand internationally?

2. What strategies worked best when you expanded internationally?

3. What barriers did you encounter when implementing those strategies?

4. How did you address the barriers when implementing the strategies?

5. How did you assess or measure the effectiveness of your international strategies?

6. What additional information could you provide that could be helpful in growing

companies through international expansion?

Conceptual Framework

In this qualitative case study, I used the conceptual framework of cultural

intelligence, a construct developed by Earley and Ang (2003), which classified cultural

intelligence as the ability to cope with various cultures and to gain a better understanding

of unfamiliar contexts. The three critical elements of cultural intelligence are cognition,

motivation, and behavior (Tuleja, 2014). The principle behind the construct of cultural

intelligence is the individual’s ability to function effectively in multicultural settings

(Menon & Narayanan, 2015). The purpose of understanding the cultural intelligence

conceptual framework in this qualitative case study was to potentially help me to

understand a context for developing business practices that support international

expansion. The application of cultural intelligence in internationalization can facilitate

cultural learning and enable business leaders to expand effectively internationally.

Operational Definitions

This section includes the definitions of technical terms used throughout this study.

Cultural intelligence (CQ): CQ is the ability to understand significant cultural

norms of diverse cultures and to function skillfully under these different cultural contexts

(Tuleja, 2014).

Cultural knowledge: Cultural knowledge is the recruitment of data from diverse

perspectives resulting in an understanding of customs, practices, norms, languages, and

behaviors for the development of creative ideas (Saad et al., 2013).

Internationalization: Internationalization is the process of integrating

international or global constructs into the purpose, functions, or implementation of

business practices (Knight, 2015).

Multinational companies: Multinational companies are entities that operate and

generate profit in more than two countries through their movement of capital, goods, and

services abroad (Tutar, Altinoz, & Cakiroglu, 2014).

Multicultural leadership: Multicultural leadership is a process of leading that

cultivates a work setting that is worldly and culturally sensitive enough to successfully

communicate and operate across borders (Ekan, Özturgut, & Craven, 2014).

Organizational culture: Organizational culture consists of the attitudes, values,

behavior patterns, and habits within an organization that defines the quality of the social

climate (Mohelska & Sokolova, 2015).

Assumptions, Limitations, and Delimitations

Assumptions

Assumptions are thoughts or ideas that exist with the probability of being true

(Marshall & Rossman, 2014). Without an assumption, a research study may not progress

(Simon, 2011). The first assumption entailed the consideration that international business

processes are the same in every country. The second assumption was that there are

multiple factors that contribute to selecting the appropriate strategy to grow a company

for each country. The last assumption was that business strategies that were proven to be

effective in developed countries could also be effective in developing countries,

particularly the West Bank.

Limitations

Limitations are the potential weaknesses and circumstances out of the researcher’s

control (Yin, 2014). My first limitation was that the participants would provide truthful

responses. A second limitation in this study included the potential for the participant to

recall events inaccurately during the interviews. A third limitation involved the potential

for accuracy of the company records shared by the participants for the document review.

A fourth limitation was that my findings were not applicable to other populations.

Delimitations

Delimitations are the limits and boundaries of the scope of the study (Simon,

2011). A delimitation of this study was that the research included only MNE executives

who participated in the internationalization of the company. The study consisted only of

international business leaders in the West Bank in Palestine.

Significance of the Study

Exploring strategies that experienced multinational executives implemented for

international expansion is significant because international business strategies impact a

company’s long-term performance and growth (Fung, 2014). By implementing effective

multinational business strategies, business leaders can enhance their leadership abilities to

grow their operations internationally.

Contribution to Business Practice

The findings from my study could contribute to business practice by identifying

effective leadership strategies to expand operations internationally. A positive correlation

exists between leadership practices that include effective decision making processes,

long-term strategic options, and international growth (Fung, 2014). Previous researchers

discovered the importance of a global mindset on both individual and organizational

levels for international growth (Gaffney, Kedia, & Clampit, 2013). Fourné, Jansen, and

Mom (2014) argued that for positive international growth, senior executives of MNEs

must be strategic in recognizing and resolving cross-border issues that emerge. A

thorough understanding of effective business strategies could lead to the development of

crucial international leadership skills for catalyzing corporate growth and sustainability.

The findings of the study could lead to valuable insights on effective strategies that could

help business leaders enhance their international growth and increase profitability.

Implications for Social Change

The findings from this qualitative case study could encourage business leaders to

explore business activities in other countries to increase corporate growth, which could

result in new employment opportunities and thus better living standards. In the West

Bank, there is an urgent need for economic investments to stimulate growth in the

economy (Abu-Eideh, 2014). The results of this study could contribute to social change

by enabling MNE growth in the West Bank, decreasing the unemployment rate, and

enhancing the living situations for residents. The tax revenues generated from MNE

growth could be allocated for the country’s infrastructure and government services.

A Review of the Professional and Academic Literature The purpose of

this literature review was to identify significant research on business strategies that

multinational executives used to grow their companies through international expansion.

The structure of the literature review was the foundation for exploring the research

inquiry on the strategies that business leaders utilized to grow their companies through

international expansion. A critical review of peer-reviewed literature was useful in

researching effective strategies implemented by international business leaders.

To identify prospective, peer-reviewed articles and books, the following key

words were used: global management, internationalization, multinational enterprises

(MNEs), globalization, cultural intelligence, and international leadership strategies. The

following databases were used: Google Scholar, ProQuest, EBSCOhost, Business Source

Complete, Science Direct, and Emerald Management Journals. The majority of the

peerreviewed literature came from Google Scholar. Some seminal scholarly books were

also used.

The strategic measure used for searching the literature involved identifying

concepts that related to internationalization strategies. After establishing related

concepts, I selected key words to enhance the search and collect the literature that helped

define the nature of my study. A total of 268 sources were used for the study. Two

hundred and thirty-eight of the sources were peer-reviewed references, which represented

88.8% of the total sources and 31 of the sources were not peer-reviewed references,

equating to 11.6% of the total sources. Fifteen of the sources were books representing

5.6% of the total, one dissertation represented 0.4%, three government websites

represented 1.1%, and five trade magazines represented 1.9%. Among the references,

233 had a publication date between 2013 and 2018, representing 86.9% of the total

sources. The literature review consisted of 119 references. Of these, 109 were

peerreviewed sources, representing 92% of the total.

In this qualitative case study, I explored strategies used by multinational business

executives to grow their companies through international expansion. Increased

globalization contributed to the establishment of institutional and economic standards for

growth strategies of various countries (Amal, Awuah, Raboch, & Andersson, 2013).

Yemini (2014) argued that global business leaders should examine internationalization on

the basis of benefits, outcomes, unforeseen developments, and negative implications.

Some of these circumstances involve various measures including low trade barriers,

elevated global integration, and targeting different markets resulting in new customers

from around the globe (Amal et al., 2013).

This literature review is organized by (a) the facets of cultural intelligence (b)

various international business strategies (c) specific factors to consider during

internationalization (d) the challenges that business executives encountered as they

expanded across borders, and (e) a synthesis of the literature as it pertains to cultural

intelligence. I developed themes based on the topic to help gain an understanding of

effective international business practices. The themes consist of the conceptual

framework and elements that impact internationalization processes. The first theme is a

thorough explanation of the major components of the conceptual framework of cultural

intelligence in relation to international business strategies. The theorists, Earley and Ang

(2003), identified three sources of cultural intelligence including the cognitive,

motivational, and behavioral elements that can potentially clarify the strategic

mechanisms behind successful internationalization.

The second theme involves effective strategies that enhance internationalization

processes. I compared and contrasted previous, related research on various business

strategies used by multinational enterprises. Some of the strategies involve the gaining

and sharing of international knowledge, mergers and acquisitions, diversification

strategies, and the adoption of effective leadership characteristics and skills. The third

theme includes the factors to consider during international expansion. The considerations

explored in this study include differences in cultural environments, cultural language, and

different global systems. The final theme is an analysis of the challenges to expect during

internationalization. Some of the challenges identified include cultural differences, lack

of cross cultural skills and competencies in a foreign business setting, and political and

environmental obstacles. The critical analysis and synthesis of the various themes will

potentially enhance the understanding of the dynamics behind successful multinational

business strategies as it relates to cultural intelligence.

Cultural Intelligence Conceptual Framework

CQ is a growing phenomenon in internationalization processes. As companies

continue to progressively globalize, more firms are expanding to more diverse

crosscultural environments (Yitmen, 2013). Globalization significantly impacts modern

leaders learning diverse cultures in regions where they intend to expand in (Ekan,

Özturgut, & Craven, 2014). In reference to the sources of CQ, multinational business

leaders should learn the culture and beliefs; display an understanding through actions;

and should be willing to adapt to the characteristics, considerations, strategies, and local

business challenges.

CQ contributes to the enhancement of leadership competencies and processes in

multicultural environments. The term CQ refers to a combination of skills and traits that

enable a person to effectively interact and communicate in a cultural environment

(Menon & Narayanan, 2015; Yitmen, 2013). In business, CQ applies to the cognitive

features of cultural awareness, cultural expertise, and the drive to adapt and function in

diverse cultural conditions (Lisak & Erez, 2015). Earley and Ang (2003) introduced the

construct of CQ and claimed that there are individual competencies that enable people to

operate in multicultural environments. Leaders must adapt to change when operating in a

cross-cultural setting and can use CQ to enhance their capabilities to conform to these

changes (Erez et al., 2013). Elements of CQ appear to predict cultural assessments,

decision-making processes, cultural compliance, and project performance (Ang et al.,

2007). Yitmen (2013) inferred that CQ helped leaders cope with intercultural

circumstances and communication conflicts. Huff et al. (2014) defined CQ as the ability

to adapt effectively in diverse cultural environments. An international business leader

that possesses CQ can ease the adaption process as they operate under unfamiliar

conditions.

Early and Ang’s (2003) conceptual framework of CQ stemmed from Sternberg’s

(1999) theoretical framework of successful intelligence. Sternberg developed the

framework to introduce four components to conceptualize individual-level intelligence

(Ang & Van Dyne, 2015). Based on Sternberg’s work, CQ is a multifactor construct

(Gonçalves, Reis, Sousa, Santos, & Orgambídez-Ramos, 2015), which consists of

cognitive intelligence, metacognitive intelligence, motivational intelligence, and

behavioral intelligence (Yitmen, 2013). The four elements of CQ emulate the

contemporary aspects of intelligence (Ang & Van Dyne, 2015). The general structure of

CQ enables business leaders to build international knowledge and manage cultural

differences while maintaining a competitive advantage in a global setting.

Cognitive Cultural Intelligence

The four facets of CQ refer to specific capabilities of responding to various

beliefs, behaviors, and attitudes under changing environments. Cognitive CQ involves

knowledge from individual norms and experiences leading to an understanding of cultural

differences (Ang et al., 2007; Chen & Lin, 2013; Gonçalves et al., 2015; Lisak & Erez,

2015). A person with high cognitive CQ comprehends the similarities and dissimilarities

of cultures (Charoensukmongkol, 2015). Cognitive CQ entails common knowledge and

knowledge structures involving culture (Ang & Van Dyne, 2015). An individual uses the

cognitive aspect to conceptualize and process new data (Tuleja, 2014). The cognitive

element of CQ is a significant component because the general knowledge of culture

influences how people behave and think (Ang & Van Dyne, 2015). The cognitive process

enables a person to evaluate his or her knowledge, behave accordingly, and then

reevaluate the events based on the nonverbal cues that occurred between the parties

(Tuleja, 2014). An understanding of a culture enables individuals to appreciate the

cultural structures that build patterns of social communication resulting in improved

interaction with people from different cultural settings (Ang & Van Dyne, 2015). If an

individual understands the fundamental guidelines or expectations of a culture, he or she

will more likely operate and communicate in a manner that is acceptable by others in that

culture (Huff et al, 2014). Cognitive CQ facilitates cultural awareness and knowledge of

foreign beliefs and practices through education or exposure to different cultural settings.

Metacognitive Cultural Intelligence

Metacognitive CQ is a facet that reflects more on the mental procedures that

people use to gain a better understanding of cultural differences. Metacognitive CQ is the

mental measures that individuals utilize for cultural awareness (Ang et al., 2007;

Gonçalves et al., 2015). Metacognitive CQ refers to the mental processes used by people

to gain and comprehend cultural knowledge (Lisak & Erez, 2015; Menon & Narayanan,

2015). Individuals with high metacognitive CQ control their thought processes and

frequently monitor their progress (Charoensukmongkol, 2015; Yitmen, 2013). A person

with enhanced metacognitive CQ questions his or her personal cultural assumptions,

reason his or her interactions, and conform his or her cultural knowledge to other cultures

(Ang & Van Dyne, 2015; Chen & Lin, 2013). A person with metacognitive CQ is

mindful of personal feelings, thoughts, and actions in multicultural settings (Tuleja,

2014). The metacognitive element of CQ stimulates thinking about individuals and

situations in multicultural settings (Ang & Van Dyne, 2015). An individual with this

mental process tends to analyze assumptions and acclimate mental maps when

experiences differ from expectations (Li et al., 2013). Metacognitive CQ allows people

to reorganize their cultural strategies to accommodate cross-cultural encounters (Ang &

Van Dyne, 2015). The metacognitive element of CQ assists in managing individual

thought processes through cultural knowledge.

Metacognitive CQ plays a significant role in controlling individual thinking when

managing cultural differences. Metacognitive CQ is the most influential component of

the four CQs that promotes knowledge sharing due to its direct and indirect impact on

knowledge sharing (Gonçalves et al., 2015). Chen and Lin (2013) contended that

business leaders should consider engaging in incentives related to metacognitive CQ to

manage cultural differences within a team that adversely effects knowledge sharing.

Team members with high levels of metacognitive CQ have skills in identifying and

acclimatizing the distinct values of the members (Adair, Hideg, & Spence, 2013).

Metacognitive CQ reflects a higher level of awareness of cultural influences on both the

individual and others involved (Chen Lin, 2013). The metacognitive component of CQ is

an enhanced facet of cultural intelligence, which involves advanced cognitive processes.

Motivational Cultural Intelligence

Self-motivation is a crucial factor in the enhancement of CQ. Motivational CQ

refers to the ability to introduce, control, and convey learning and other useful behaviors

in different cultural environments (Eisenberg et al., 2013; Menon & Narayanan, 2015).

Motivational CQ refers to the self-motivation and duty to adapt and conform to

crosscultural settings (Lisak & Erez, 2015). A person with high motivational CQ

maintains better coping strategies and has an inherent interest in attaining knowledge

about different cultures (Eisenberg et al., 2013). A person’s internal motivation drives

him or her to engage in cross-cultural experiences (Gonçalves et al., 2015; Huff et al.,

2014). Motivational CQ reflects on individual capabilities guided by energy and personal

interest in functioning in a multicultural environment.

Higher levels of motivational CQ can enable a business leader to successfully

function in a diverse setting. Motivational CQ is a driving force for learning about

different cultural settings and how to function within them (Ang & Van Dyne, 2015; Huff

et al., 2014). This element embodies a top-down proliferation of a company’s mission

and culture, where organization members adapt and embrace cultural diversity (Froese,

Kim, & Eng, 2016). Individuals with motivational CQ successfully operate in different

cultural environments (Ang & Van Dyne, 2015). For instance, an executive who has a

general understanding of a foreign language and enjoys interacting with others from

diverse cultures will most likely converse with foreign colleagues. Conversely, an

executive learning a language for the first time or opposes interactions with foreigners

would be less likely interact with colleagues from other countries. Leaders with higher

levels of motivational CQ have the ability to manage situations characterized by cultural

dissimilarities, are able to overcome cross-cultural obstacles, and can likely cooperate

with local organizational members (Froese et al., 2016). Individuals that have the

motivation to adapt to cultural differences will most likely ease their chances of

successfully operating in a transnational environment.

Motivational CQ can assist in overcoming multicultural challenges. This

component of CQ is a fundamental attribute that people must possess to collaborate with

diverse cultures (Presbitero, 2016). Individuals with elevated levels of motivational CQ

tend to have high interest for cross-cultural experiences (Li et al., 2013). Presbitero

(2016) referred to motivational CQ as a building block for overcoming obstacles caused

by cultural differences. A person with motivational CQ has the drive to apply their

knowledge and experience to multicultural interactions and activities despite the

challenges they may encounter (Schlägel & Sarstedt, 2016). Presbitero described

motivational CQ in terms of self-efficacy, which influences an individual’s control over

motivation. Possessing the characteristic of motivational CQ is crucial, considering the

time it takes to build trusting cross-cultural relationships (Charoensukmongkol, 2015). A

person without confidence will be counterproductive when faced with cross-cultural

encounters (Presbitero, 2016). Conversely, individuals with pronounced motivational CQ

possess the self-confidence in cultural knowledge and skill to respond to demanding

multicultural situations (Schlägel & Sarstedt, 2016). Motivational CQ can guide a

person’s cultural capabilities and strategies into acceptable behaviors during cultural

encounters (Presbitero, 2016). A person that possesses motivational CQ has the

confidence to adapt to cultural differences and is likely to build cross-cultural

relationships.

Behavioral Cultural Intelligence

The behavioral component of CQ focuses on the social interactions and behaviors

within an intercultural setting. Behavioral CQ is the capability to adapt and apply the

appropriate verbal and nonverbal behaviors in a multicultural context (Menon &

Narayanan, 2015). Some of these behaviors include attire, body language, time

management patterns, physical space, and social etiquette (Eisenberg et al., 2013).

Behavioral CQ is a significant element of CQ because verbal and nonverbal behaviors are

the most pertinent aspects of social synergy (Ang & Van Dyne, 2015). The ability to

apply verbal and nonverbal actions enables a person to better communicate with others

from diverse cultural environments (Huff et al., 2014). As individuals interact on a

faceto-face basis, they lack access to individual thoughts, motivation, and feelings (Ang

& Van Dyne, 2015). A person with behavioral CQ has the capability to exhibit those

behaviors (Lisak & Erez, 2015). These individuals do have access to an individual’s

vocal, facial, and other external expressions (Ang & Van Dyne, 2015). Individuals with

behavioral CQ apply their broad range of verbal and non-verbal capabilities to different

cultural situations (Menon & Narayanan, 2015). People with higher levels of behavioral

CQ are generally flexible and can adapt their behaviors to accommodate the distinct

specifics of each cultural encounter (Ang & Van Dyne, 2015; Gonçalves et al., 2015).

The behavioral facet of CQ allows the individual to effectively communicate in a verbal

or nonverbal manner with people in an intercultural environment.

The facets of CQ can result in promising individual and organizational outcomes.

All four components of CQ are different and promote cultural competence (Eisenberg et

al., 2013). Adair et al. (2013) discovered that behavioral and metacognitive CQ had a

positive effect on shared values of heterogeneous teams that were culturally diverse.

Behavioral CQ represents an individual’s ability to conform to verbal and nonverbal

behaviors to replicate what other people from different cultural backgrounds do

(Charoensukmongkol, 2015). Metacognitive CQ is the dimension of cultural intelligence

that exploits the decisive strength in management conflict styles (Goncalves et al., 2015).

Motivational and metacognitive CQ negatively affects the shared values within culturally

heterogeneous teams (Adair et al., 2013). Huff et al. (2014) posited that motivational CQ

was the most significant for expatriates adapting in cross-cultural environments.

Individuals with an advanced level of motivational CQ have elevated levels of energy and

may put forth more efforts to adapt to another culture (Eisenberg et al., 2013; Presbitero,

2016).

Adaptability is a crucial component of CQ (Crowne, 2013). The best way to

obtain CQ is through long-term international experience (Li, Mobley, & Kelly, 2013).

Individuals who enhance their CQ skills have a greater understanding of their cultural

environment, which may result in more effective communication (Crowne, 2013).

Crosscultural communication is crucial in building cultural intelligence (Taras et al.,

2013). Intercultural encounters influence a person’s experience with the culture, which

results in an enhancement of personal knowledge about that culture (Crowne, 2013). CQ

contributes to effective leadership in an international setting (Keung &

RockinsonSzapkiw, 2013). By interacting in a culture, an executive could learn to adjust

to the culture and understand how it differs from his or her own culture (Crowne, 2013).

Individuals with CQ effectively communicate with others with different goals, beliefs,

interests, and educational and social backgrounds (Gonçalves et al., 2015). CQ is a

multidimensional construct made of components that enable individuals to consciously

evaluate their own cultural assumptions and gain a deeper understanding of cultural

norms for successful international expansion.

Cultural knowledge is a significant factor in internationalization strategies.

Multinational firms are confronting global competition, which requires sufficient

crosscultural knowledge to survive (Sheng, Hartmann, Qimei, & Chen, 2015). As global

work processes differ from domestic work processes, it has become increasingly

important for global leaders to manage cultural differences to successfully execute global

strategies (Li et al., 2013). The collaboration between social networks is a significant

factor for firms operating in foreign countries where organizational processes differ from

those of the company’s home country (Charoensukmongkol, 2015). Cultural knowledge

is a requirement for leaders seeking to grow internationally and maximize performance

and profitability (Ekan, Özturgut, & Craven, 2014). Cultural competence is a crucial

factor that assists in alleviating cultural differences within diverse social networks.

CQ is a vital attribute for business leaders to possess during internationalization

processes. Based on the impacts of culture, a business leader’s CQ is an essential

component that heightens the quality of relationships between parties in culturally diverse

settings (Charoensukmongkol, 2015). Firms entering a globally competitive market face

greater complexities, which require enhanced integration and knowledge flow to

overcome geographical, economic, and cultural differences (Yitmen, 2013). CQ is an

enhancement of abilities to manage effectively people with diverse cultural backgrounds

(Li et al., 2013). CQ is a significant attribute that positively influences the development

of interpersonal conflict resolutions in multicultural settings (Gonçalves et al, 2015). In

essence, CQ enables business leaders to operate more efficiently in foreign markets

(Charoensukmongkol, 2015). CQ is the objective means by which individuals can

evaluate their own cultural knowledge to successfully operate in a cross-cultural

environment.

Global leaders require intercultural competence to function in an environment

with different cultural backgrounds, beliefs, and norms. Tuleja (2014) postulated that

culturally intelligent people utilize their knowledge to comprehend the different facets of

various cultural backgrounds. Yitmen (2013) asserted that culturally intelligent

companies could outperform companies that are less culturally intelligent. Ekan et al.

(2014) suggested that leaders need to adapt to change when operating in a multicultural

environment and that CQ strengthened the capabilities for adaption. CQ is a significant

way to observe individual attributes that elevate efficiency in a foreign atmosphere

(Morrell, Ravlin, Ramsey, & Ward, 2013). An individual with CQ can develop

intercommunication strategies based on different situations in diverse environments. The

ability of a leader to understand and adapt to cultural dissimilarities by being flexible is

crucial in managing the complexities of cross-cultural encounters.

The incorporation of CQ in leadership styles can benefit social outcomes in

culturally diverse settings. Ekan et al. (2014) correlated leadership styles with CQ.

Individuals with higher CQ have the ability to manage their social behavior while

utilizing integrative management styles and collaborative techniques compared to those

with less CQ (Gonçalves et al., 2015). People with CQ can operate efficiently and

manage social encounters in diverse cultural situations (Keung & Rockinson-Szapkiw,

2013). Individuals that are cognizant of individual differences during social encounters

will accentuate their connection with others and implement strategies that strengthen the

relationship (Gonçalves et al., 2015). It is imperative that international business leaders

emphasize cultural intelligence as a key factor in developing imperative knowledge on

cultural differences and similarities as they internationalize (Morell et al., 2013). The

integration of CQ in leadership can enhance the social connection between parties in

cross-cultural environments.

Another component related to cultural intelligence is contextual intelligence.

Khanna (2014) discussed the importance of contextual intelligence when venturing into

unfamiliar territory. Prinsloo, Archer, Barnes, Chetty, and Van Zyl (2015) referred to

contextual intelligence as a thorough understanding of a company and how it functions

with knowledge of its strategic objectives. Khanna defined contextual intelligence as the

ability to recognize the limitations of our knowledge and to utilize that knowledge to

adapt to different environments. Adaptive capacity is a core component of contextual

intelligence, which enables the leader to assess his or her environment and organize data

(Kutz & Bamford-Wade, 2013). During day-to-day activities, different contexts arise,

causing different motivations for different circumstances (Ybarra et al., 2014). As

conditions vary in different environments, it becomes more complex to adjust to local

institutional characteristics, geographic locations, language, and cultural norms (Khanna,

2014). An individual with contextual intelligence embraces change and adjusts their

behavior to adapt to that change (Kutz & Bamford-Wade, 2013). Similar to CQ,

contextual intelligence enables business leaders to understand these complexities to

effectively operate across borders (Khanna, 2014). Contextual intelligence can help

business leaders understand the limitations of their knowledge, enabling them to use that

knowledge to operate effectively across borders.

In the context of international growth, CQ is an objective construct by which

individuals in business can acquire valuation based on their abilities to operate effectively

in culturally diverse environments (Lima, West, & Winston, 2016; Schlägel & Sarstedt,

2016). As a relatively new construct, CQ appeals to different disciplines including

international management and intercultural psychology (Şahin, Gurbuz, & Köksal, 2014).

Although CQ focuses more on individual level analysis, it is the foundation of the

construct upon which to develop the organizational level analysis (Lima et al., 2016).

The development and evaluation of cultural and societal competence is crucial for

business leaders operating across borders (Tuleja, 2014). Lima et al. illustrated that

intelligences are flexible and conformable and not standardized and fixed. Consistent

with this view, Schlägel and Sarstedt (2016) believed that to properly measure CQ’s

effects on attitudes and behaviors of individuals with diverse backgrounds, practitioners

need a clear understanding of how to evaluate CQ. International leaders must embrace

change and be willing to overcome the complexities of intercultural differences (Tuleja,

2014). A precise assessment of CQ could enable firms to recognize issues within the

organization at an early stage (Schlägel & Sarstedt, 2016). CQ can assist in defining

individual differences used to manage new multicultural environments (Huff et al., 2014).

An accurate measurement of CQ will allow an organization to develop strategies for

incorporating CQ in operations (Schlägel & Sarstedt, 2016). These strategies contribute

to the endurance needed to successfully complete MNE assignments (Wood & Peters,

2014). Developing a thorough comprehension of CQ is imperative when evaluating

international management abilities and competencies (Schlägel & Sarstedt, 2016).

An executive of an MNE can learn cultural intelligence and use it to enhance

international competency. Wood and Peters (2014) examined CQ through short-term

cross-cultural study tours and found that CQ was adaptable, changeable, and capable of

being enhanced. Although all four dimensions of CQ are different, each component has a

significant effect on cross-cultural competencies (Eisenberg et al., 2013). A short-term

cross-cultural study tour promotes experience in culture, which then leads to more

developed CQ (Wood & Peters, 2014). As a multidimensional construct, CQ is made of

components that represent different abilities that combine to make up one construct

(Eisenberg et al., 2013). Specifically, these business visits enhance the metacognitive,

cognitive, and motivational dimensions of CQ (Wood & Peters, 2014). Leaders with CQ

generally focus on understanding, reasoning, and behaving effectively under culturally

diverse settings (Ang et al., 2007). Wood and Peters suggested that firms should consider

short-term cross-cultural study tours early on in the international leadership development

stage to support CQ and enhance cross-cultural interactions. International experience

leads to better knowledge and strengthens social competencies, which impacts an

individual’s CQ (Şahin et al., 2014). Individuals that decide to step away from their

comfort zone and relocate to foreign cultures often experience stress due to unfamiliar

beliefs and practices (Ang et al., 2007). Exposure to diverse cultural environments

enables individuals to be conscious of their own cultural beliefs and allows them to think

and reason before and during their encounters (Sahin et al., 2014). Hansen, Tanuja,

Weilbaker, and Guesalaga (2011) referred to CQ as the antecedent of multicultural

adjustment. Individuals with international experience are more appreciative of cultural

similarities and are understanding of cultural differences (Sahin et al., 2014).

An international leader with higher levels of extraversion is more likely to develop

effective internationalization strategies. Open personality traits positively impact the

capability of a leader to perform (Tufekci & Dinc, 2014). Şahin et al. (2014) found that

higher levels of extraversion resulted in enhanced metacognitive CQ and behavioral CQ

in comparison to less extraverted people. The personality traits of openness to

communication and conscientiousness affect the components of CQ (Tufekci & Dinc,

2014). Extraversion is a person’s desire to be a part of a social setting and having social

competence (Sahin et al., 2014). Ko (2015) concluded that extroversion and

openmindedness are primary characteristics that could enhance international leadership

strategies. Individuals that are more open to cultural experiences enhanced their

motivational CQ, where people that are less open reduced their levels of motivational CQ

(Sahin et al., 2014). In an international context, extraverted leaders with CQ are open to

adapt to a transnational environment and are likely to develop strategies to effectively

merge into a foreign market.

Cultural intelligence is a significant asset for international growth. Rothwell

(2012) confirmed the importance of CQ for businesses growing globally and identified

valuable tips on training individuals in multicultural environments. International

executives should determine how best to adjust to cross-border management practices by

obtaining adequate knowledge of the local norms and cultural practices (Nguyen &

Aoyama, 2013). Rothwell emphasized the importance of cultural sensitivity, researching

the country before entry, and locating qualified partners or informants. International

experience is also essential for global executives because it is a vital component of

intercultural learning, which enhances CQ (Li et al., 2013). Companies should focus on

the appropriate marketing principles, consider local languages, be aware of cultural

issues, and understand the differences in how individuals partake in business activities

and what motivates them (Rothwell, 2012). Paletz, Miron-Spektor, and Lin (2014)

emphasized the value of cultural meanings where individuals can control and leverage

conflict for positive outcomes if an individual enhances their knowledge on the

differences of those meanings. Other recommendations included the comprehension of

different negotiation methods, sensitivity towards various communication styles,

capitalizing on personal relationships, and maintaining a level of tenacity to make an

impact (Rothwell, 2012). Internationalization practices guided by CQ can serve as a

platform for international business leaders seeking to operate across borders.

Alternative Theories

In addition to CQ, there are other theories that help predict international

expansion. Uppsala internationalization theory and effectuation theory are two theories

that assist in exploring the business inquiry. Both theories are recognized alternatives in

the study of internationalization.

Uppsala internationalization theory. The Uppsala internationalization model is

a one of the most widely used theories for explaining international market selection

trends due to its simplified and applicable platform (Childs & Jin, 2014). The Uppsala

theory is an economic model that focuses on the gradual integration, increased

involvement, and use of knowledge in foreign markets (Johanson & Vahlne, 1977). This

theory helps identify obstacles faced by international firms leading to a more accurate

business network view (Johanson & Vahlne, 2009). Researchers discovered that as

companies gain international market knowledge and minimize their international risks,

the companies increase their commitment level (Childs & Jin, 2014). The

internationalization theory pertains to the company’s need to overcome the extra cost of

foreignness, including vague political regulations, geographic distance, and cultural and

language barriers to succeed abroad (Almodóvar & Rugman, 2015).

There are two significant components of the Uppsala model: market knowledge

and market commitment (Childs & Jin, 2014). Johanson and Vahlne (1977) suggested

that as a firm continues to enhance their international knowledge, they would increase

their level of market commitment, which determines the speed, market selection, and

entry mode. If a company has less foreign market knowledge, their internationalization

speed will be lower and they will select markets with minimal risks (Childs & Jin, 2014).

As a firm’s market knowledge increases, the speed of internationalization increases

(Johanson & Vahlne, 1977). Companies with low market knowledge are likely to select

markets in countries that are geographically and culturally similar to their home country

and pursue an entry mode with limited risks, which may include licensing or franchising

(Child & Jin, 2014). Firms that gain market knowledge will increase their commitment

and select a higher control entry mode that may consist of joint ventures or fully owned

businesses (Child & Jin, 2014).

Johanson and Vahlne (2009) recognized the changes in the patterns that

influenced internationalization resulting in a more evolved version of the Uppsala model.

Johanson and Vahlne (2013) focused on a more in-depth approach and discovered a

correlation between developing knowledge and strengthening international relationships.

Almodóvar and Rugman (2015) referred to the enhanced internationalization theory as

Uppsala 2 where they considered the risks of network outsiders being a significant barrier

during an international expansion. Cho and Jin (2015) had a more optimistic perspective

on the Uppsala model and suggested that foreign market knowledge played a significant

role in mediating the relationship between foreign networking and global market

involvement. The Uppsala model evolved into a more in-depth concept on

internationalization where the emphasis relies on experimental knowledge.

Effectuation theory. Effectuation theory is another alternative model in the study of

internationalization that is the foundation for understanding the early development of

MNEs (Andersson, 2011). Effectuation assists in describing decision- making heuristics

based on predicted events, allowing firms to increase their level of foreign market

commitment (Kalinic, Sarasvathy, & Forza, 2014). A decision that involves effectuation

consists of a set of unchangeable characteristics and situations, possible effects,

constraints on those effects, and the basis for selecting between the effects (Sarasvathy,

2001). Similar to CQ, the effectuation process begins with leadership traits and skills,

international knowledge, and foreign relationships when entering global markets (Chetty,

Johanson, & Martín, 2014). Global entrepreneurial firms with exiting relationships in

international markets use effectuation to enter foreign markets (Chetty, Ojala, &

Leppäaho, 2015).

The basis of effectuation involves relationships at an individual executive level

(Chetty et al., 2015). In the context of international business, the executive of an MNE

uses effectuation to expand their business to foreign markets with limited access to

resources (Sarasvathy, 2001). For instance, an executive of a company that primarily

operates in the United States with only relationship ties to the West Bank may lack other

resources to expand operations to the region. Through effectuation, the executive may

pursue expanding abroad by examining an available set of means or causes (Sarasvathy,

2001). The executive may have limited monetary resources to invest the time for a

thorough analysis of the market, enabling him or her to think creatively without available

resources. Through effectuation, the executive may build a foundation of strategic

partnerships to identify target segments (Chetty et al., 2014). The effectuation theory

relates to the development of a decision making capacity by the executive of a firm,

enabling him or her to seek new opportunities with strategic partners under uncertain

circumstances (Agogué, Lundqvist, & Middleton, 2015). The concept of effectuation is a

viable decision making logic where the emphasis lies on the executive’s own actions

(Sarasvathy, 2001).

Both the Uppsala internationalization model and effectuation logic are alternative

theories that apply to internationalization. The Uppsala model focuses more on the

organizational level, where the firm develops international knowledge, while minimizing

liabilities and increasing their commitment to those markets (Childs & Jin, 2014). The

effectuation theory relies on the individual executive’s cautious and innovative actions

with regard to accessible means, potential effects, and partnership commitments (Reuber

et al., 2016). CQ contributes more towards the individual multinational executive’s

competencies and strategies on a tactical level of analysis. A close examination of CQ

reveals that business executives can learn the skill sets and traits needed to strategically

interact and communicate effectively during an international expansion (Yitmen, 2013).

International Business Strategies

International growth has been a topic of interest for companies since the evolution

of globalization (Shah et al., 2013). The emergence of globalization resulted in

businesses facing the challenge of adapting effective internationalization strategies as

they grow their companies internationally. With a global platform, MNEs using

internationalization strategies develop standards that are suitable for home national

cultures (Bondy & Starkey, 2014). A common strategy for growth through international

expansion included the development of a production and global marketing scale that

reduces costs and generates supply chain savings (Contractor, 2013). Some MNE

strategies focused more on adjusting their human resource management practices to

different societal and organizational contexts (Edwards et al., 2013). Other strategies

involved striving for international recognition, understanding the complexities of

organizational and customer needs, leveraging foreign knowledge, replicating emerging

markets, and investing in natural resources (Contractor, 2013). Some multinational firms

pursued strategies that capitalized on first-mover advantages, entry motives and modes,

increased localization and adaption to local conditions, market acquaintances, and

political acquaintances (Bouyoucef & Chung, 2015). Fourné et al. (2014) identified three

dynamic capabilities that formulated the basis for strategic agility, including sensing local

opportunities, achieving international complementarities, and appropriating local value.

Large international firms use these capabilities to function effectively across foreign

markets. Firms with strategic agility pursue extended strategic resource commitments,

maintain a level of flexibility, and create innovative products. For the purposes of this

study, I elected to explore strategies on gaining and sharing international knowledge,

mergers and acquisitions, diversification, and adopting the appropriate leadership

characteristics and skills needed to grow companies through international expansion.

Gaining and sharing international knowledge. As companies grow

internationally, they must understand how to manage their operations effectively in

foreign environments to remain competitive and successful (Fletcher, Harris, & Richey,

2013). Fernhaber and Li (2013) found that gaining knowledge through international

exposure to alliance partners was one strategy that positively impacts new transnational

ventures. Knowledge is a crucial element of sustainable growth and organizational

performance (Witherspoon, Bergner, Cockrell, & Stone, 2013). Fletcher et al. (2013)

suggested that internationalization knowledge plays a significant role in a competitive

global market and that firms should combine external sources with accumulated internal

experience to develop enough sufficient international knowledge to sustain a foreign

market. Consistent with this view, Pellegrino and McNaughton (2015) argued that new

international ventures required such knowledge to develop new potential products in

foreign markets. Internationalization knowledge is the foundation for experiential

competence in a foreign market (Fletcher et al., 2013).

An extension of the benefits of international knowledge is the concept of

knowledge sharing. Chen and Lin (2013) asserted that CQ was a significant driver of

knowledge sharing among intercultural organizations. Paulin and Suneson (2015) noted

that in knowledge sharing the focal point is on human capital and the interaction between

people. Yitmen (2013) noted that an MNE’s emphasis on knowledge sharing helps

strengthen the interorganizational interface between firms. The intent to share knowledge

relies on a person’s expectation of exchanging data, expertise, and skills to enhance

shared operations (Witherspoon et al., 2013). Paulin and Suneson asserted that there were

four significant elements that impact knowledge sharing, including the attribute of

knowledge, the desire to share, the opportunities to share, and the work setting. MNEs

function more efficiently and collaborate by sharing knowledge with outsourced

companies that comply with consumer needs (Gupta & Polonsky, 2014). The facilitation

of knowledge sharing within the subsidiaries of MNEs requires trust, task efficacy, and a

more natural environment (Sheng et al., 2015). MNEs could cultivate employee

knowledge sharing through labor training, high-end intermediate inputs, and management

techniques (Poole, 2013).

Mergers and acquisitions (M&A). M&A is another effective strategic method

used in international expansions (Gomes, Angwin, Weber, & Yedidia Tarba, 2013).

M&A is the primary method for entering global markets (Alimov, 2015). Sarala, Junni,

Cooper, and Tarba (2016) suggested that M&As were significant mechanisms for

international growth. Since 2000, there has been a rapid increase in M&A due to market

globalization and more competition (Di Guardo, Marrocu, & Paci, 2015). MNEs use

cross-border mergers and acquisitions to assist in the development of outward foreign

direct investments from emerging countries (Deng & Yang, 2015). M&A serves as an

enhancement of the knowledge infrastructure of the acquiring company through the

development of innovative knowledge combinations from merged firms (Sarala et al.,

2016). Ferreira, Santos, de Almeida, and Reis (2014) referred to M&A as the preferred

strategy for CEOs expanding their business and geographic scope. Di Guardo et al.

(2015) confirmed that firms using M&As as strategic tools are likely to gain market

shares, develop transnational bridges with budgeted start-up costs, gain access to

international markets, and assist in dealing with government regulations. Blonigen,

Fontagné, Sly, and Toubal (2014) believed that the motivation of firms to pursue

transnational M&As stems from their need to gain a comparative advantage in

international markets through acquisitions from experienced targets. Gaffney, Cooper,

Kedia, and Clampit (2014) argued that in addition to exporting, licensing, alliances, and

joint ventures, M&A is a strategic option for MNEs seeking to internationalize. Deng and

Yang (2015) referred to M&As as an effective business strategy for accelerating

international growth.

Diversification strategies. Multinational firms also used diversification

strategies to avoid the risk of reducing growth in an existing firm, enhance the

possibilities for growth in an industry with similar technologies, and when firms have

name recognition chose to expand into other businesses (Merdzanovska, 2015). Product

diversification has recently received substantial attention amongst international firms and

involves managing multiple products in different market segments (Tianjiao, 2014). The

increased diversity of products enables MNEs to benefit from gains in productivity and

economic growth (Parteka & Tamberi, 2013). Product diversification can also be

beneficial when larger companies are insecure about future markets (Tianjiao, 2014). The

value of diversification is dependent upon the level of capital market development,

integration, and the country’s regulatory systems (Berry‐Stölzle, Hoyt, & Wende, 2013).

Qui (2014) suggested that product diversification had a positive impact on international

strategic business initiatives for global firms. This strategy is significant because it helps

international firms cope with unfamiliar business settings and reduces expensive

investment risks (Tianjiao, 2014).

Leadership Characteristics and Skills. In a highly complex global economy,

researchers are constantly searching for strategies that enhance cross-cultural encounters

and develop cultural competencies and skill sets to ease the internationalization process

(Froese et al., 2016; Menon & Narayanan, 2015). In a global market, the skills and

characteristics of a business leader are crucial factors that determine company

performance (Charoensukmongkol, 2015). Companies must utilize the appropriate

leadership skills and characteristics needed to successfully implement leadership

strategies across borders. Huff, Song, and Gresch (2014) noted that characteristics were

attributes in individuals that construe extensive and balanced predispositions.

SammutBonnici (2014) reported that effective leadership could serve as the significant

source of motivation, empowerment, innovation and creativity. Blonigen et al. (2014)

posited that omitting the skills of workers and managers of foreign companies could

generate extreme bias when estimating M&A activity across borders. The strategy of

adopting international leadership skills and characteristics that cater to foreign

environments is necessary to convey corporate goals to various sectors across the globe.

Leaders must evaluate the internal and external surroundings, set strategic goals,

supply performance updates, and develop experienced-based programs to enable leaders

to gain a global perspective and utilize internal and external data efficiently (Antonakis &

House, 2014). An organization that makes the decision to operate abroad must have the

knowledge to assemble a team that interacts to overcome challenges and to execute a

successful plan (Owen et al., 2013). In team contexts, leaders engage themselves in

behaviors impacting their organization and focus on individual needs (Zhang, Li, Ullrich,

& van Dick, 2015). The ability to implement the plan and to deal with the challenges and

high stress levels in foreign markets is an important factor that could result in positive or

negative international growth outcomes (Hon, Chan, & Lu, 2013).

The adoption of transformational or transactional leadership styles can serve as a

strategic method in managing international business transactions. Antonakis and House

(2014) suggested that transformational and transactional leadership are an enhancement

of general leadership constructs. Du, Swaen, Lindgreen, and Sen (2013) recommended

that managers utilized both transformational and transactional leadership styles

depending on certain circumstances. Transactional leaders focus on meeting objectives

while transformational leaders rely on motivational practices to complete those objectives

(Breevart et al, 2014). Transactional leadership works well with day-to-day events and

the transformational style is effective in developing social responsibility practices (Du et

al., 2013). Elkory (2013) professed that transformational leadership and effective

organizational culture improved employee satisfaction and commitment. As a company

internationalizes, the executive of the company may consider the most appropriate

leadership strategy when operating in a foreign country.

Conforming to a transformational leadership style is a strategy that could lead to

innovation and enhanced performance when operating across borders. Al-Husseini,

Elbeltagi, and Dosa (2013) concluded that transformational leadership was a crucial

component that impacts innovation because it supports follower values, promotes

individual and corporate change, and cultivates trust and knowledge sharing in different

organizational environments. Breevaart et al. (2014) characterized transformational

leadership by the four I’s consisting of idealized influence, inspirational motivation,

individual consideration, and intellectual stimulation. Idealized influence is when the

followers share common attitudes and beliefs with the leader resulting in mutual respect

and trust (Moriano, Molero, Topa, & Mangin, 2014). Organizations require leaders that

can positively influence their subordinates to enhance performance (Nasomboon, 2014).

Inspirational motivation is the development and communication of a leader’s future

vision (Breevaart et al., 2014). A leader uses inspirational motivation to strengthen team

spirit (Tyssen, Wald, & Spieth, 2014). In individual consideration, the leaders

acknowledge that their subordinates have individual needs and capabilities (Breevaart et

al., 2014). Intellectual stimulation involves challenging followers to think beyond

conventional ideas and to utilize alternative approaches to problem solving (Moriano et

al., 2014). Transformational leadership is a valid global concept where the requirements

for particular leadership factors vary from country to country (Muenjohn & Armstrong,

2015).

The adoption of transactional leadership is another strategy that's proven to be

effective in foreign environments where individuals are driven more by monetary

compensation. Transactional leadership involves contingent rewards where the

motivation of followers relies on material incentives (Breevaart et al., 2014).

Transactional leaders focus on the task-related exchange of actions and rewards with the

followers (Tyssen et al., 2014). The leader and the follower bargain and exchange tasks

and incentives as the primary form of motivation to reach an objective (Antonakis &

House, 2014). Although most leadership approaches fall under the classification of

transformational or transactional (Tyssen et al., 2014), an international leader can

strategically utilize either style to successfully function in a multinational environment.

Another point of view involves the positive correlation between CQ and

transformational leadership (Keung & Rockinson-Szapkiw, 2013). Muenjohn and

Armstrong (2015) posited that transformational leadership was universal but some

behaviors related to leadership varied from country to country. Keung and

RockinsonSzapkiw (2013) revealed that leaders with enhanced CQ portrayed

management styles that aligned with transformational leadership. Transformational

leaders inspire their subordinates and make them aware of the importance of corporate

vision and values (Mittal, 2015). Individuals with elevated CQ have the leadership

capabilities to successfully function in a multicultural setting (Keung & Rockinson-

Szapkiw, 2013).

Consistent with this view, Menon and Narayanan (2015) found that international leaders

with CQ have the ability to manage the challenges that occur in culturally diverse

environments. Keung and Rockinson-Szapkiw extended this view and concluded that

behavioral CQ and cognitive CQ were the culminating forecasters for transformational

leadership. Mittal (2015) furthered the concept of correlating cultural dimensions with

leadership styles and found that certain types of leadership cater to different societies.

Breevaart et al. (2014) suggested that certain elements of transactional leadership were

productive but found transformational leadership to be the most effective. Mittal

suggested that in flexible and individualistic societies, charismatic leadership was more

acceptable. Charismatic leadership guided by a transactional leadership foundation could

be useful in aligning resources with a corporate mission while motivating the

subordinates (Antonakis & House, 2014). Conversely, transformational leadership was

the most adequate leadership style for collectivized and tighter niched societies (Mittal,

2015).

Aggarwal and Goodell (2014) emphasized the importance of proper personal

skills for implementing successful international business processes. Business leaders

must have the necessary skill set to deal with people with diverse cultural backgrounds

and values to sustain international growth (Posner, 2013). A leader should be mindful of

the subordinates and managers with different cultural backgrounds in addition to

developing sufficient knowledge about the country (Aggarwal & Goodell, 2014).

Multinational executives that possess the knowledge to educate members of their

organization and outside affiliates can help a firm grow through international expansion.

Contractor (2013) asserted that MNEs that properly trained their local employees,

partners, and suppliers improved labor skills and the management capabilities required to

enhance collaborations with global peers. Amal et al. (2013) concluded that experience

and the ability to learn and network were crucial factors that influenced firms to

internationalize. Executives need the skill sets, competencies, and relationships to

collaborate with business associates to effectively function in a competitive global

environment (Menon & Narayanan, 2015).

Other strategic methods involving effective skill sets for cross border expansion

include long-term orientation and post merger acquisition expertise. Contractor (2013)

focused on emerging market multinationals (EMM) where important skill sets included

long-term orientation and post merger acquisition skills. Long-term orientation refers to

a level of humility that recognizes the need for long-term strategies and internationalized

knowledge of cultural trends and the ability to learn from foreign allies (Nguyen &

Aoyama, 2013). Long-term orientation encourages internationalization because of the

increased levels of commitment to secure a future position in an international market

(Mitter, Duller, Feldbauer-durstmüller, & Kraus, 2014). Post-merger acquisition skills

involve customary negotiation practices along with the ability to overcome acquisition

related challenges, resulting in higher acquisition performance (Dikova & Sahib, 2013).

Knowledge and the use of strategic measures and tactics are essential elements in

international negotiation practices, which can lead to a competitive advantage in a global

market (Chirodea & Soproni, 2013). A multinational executive with post-merger

acquisition skills can help promote a successful integration between the members during

an international merger (Smeets, Ierulli, & Gibbs, 2016).

Although many multicultural members share similar characteristics, multiple

differences exist that can impact a company’s operation abroad (Lisak & Erez, 2013).

Organizational members from diverse backgrounds bring different perceptions, work

habits, experiences, behaviors, and working cultures to the organization (Hosseini, Zuo,

Chileshe, & Baroudi, 2013). Global leaders should be mindful of their ability to manage

employees that are culturally diverse and from different geographical locations (Tuleja,

2014). Lisak and Erez (2014) identified three characteristics that leaders should possess

that fit the global context including cultural intelligence (CQ), global identity, and

openness to cultural diversity. The adoption of these characteristics is a tactical strategy

that multinational leaders could pursue to strengthen their position in an international

market.

Global leaders with higher levels of CQ are aware of different business

procedures, have the motivation to implement resolutions for conflicts, have the

capabilities to display verbal and non-verbal behaviors, and reflect upon these behaviors

in a cultural context (Ang & Van Dyne, 2015). Leaders with well-developed global

identities serve as role models for their followers (Lisak & Erez, 2014). Individuals that

are open to cultural diversity embrace the differences in culture and have the most

potential to develop CQ (Li, Mobley, & Kelly, 2013). These characteristics guided by

CQ enable global leaders to better function and grow their operation effectively in a

global expansion (Menon & Narayanan, 2015).

Factors to Consider During International Expansion

In addition to characteristics, there are important factors to consider before

establishing an international presence. Rees-Caldwell and Pinnington (2013) considered

cultural environment as a factor that influences the method in which an executive

implements an international project. The cultural environment is one of the most

significant elements for both local and international businesses (Tutar et al., 2014).

Although some project leaders from diverse cultures may operate identical projects, their

management practices may completely differ (Rees-Caldwell & Pinnington, 2013). As

most multinational firms have workforces with diverse geographic, religious, and

language backgrounds, business leaders should consider the cultural environment in their

management processes (Tutar et al., 2014).

A thorough understanding of the multiple aspects of culture can assist a

multinational executive seeking to expand to global markets. Paletz, Miron-Spektor, and

Lin (2014) characterized culture as diversified subgroups. Tutar et al. (2014) defined

culture as a combination of emerged customs, traditions, concepts, and institutions

resulting in rules, traditions, and ideas that guide interpersonal relations. Guo and Hu

(2013) postulated that culture determines nonverbal behavior that embodies distinct

thought, feeling, or the status of the person communicating. Tutar et al. (2014) asserted

that international business leaders should consider the different facets of culture in

management strategies to gain a competitive advantage in a transnational market.

Cultural language is another element to consider for a global expansion. Suchan

(2014) asserted that considering the cultural language was a key approach to

understanding how individuals think, coordinate, and interact. Tuleja (2014) referred to

language as one of the fundamental principles directed towards understanding people’s

beliefs and behaviors. This is typical in the Middle East where language, religion, social

and political institutions, and individual identity have a close connection (Suchen, 2014).

Afsharghasemi, Zain, Sambasivan, and Siew Imm (2013) proposed a similar argument

and found that cross-cultural communication, market orientation, government regulation,

and competitive advantage played an influential role in internationalization processes.

The consideration of cultural differences and work processes in a foreign environment

may prepare executives to better function in an international work setting.

Other factors to consider during a global expansion include the two different types

of global time systems that are the most significant in international business (Guo & Hu,

2013). During cross-cultural encounters, misunderstandings may arise as individuals

communicate with others who perceive the concept of time differently (Menon &

Narayanan, 2015). Guo and Hu (2013) referred to these systems as monochronic and

polychronic times. Individuals that function in monochronic time only focus on one item

at a time and give priority to schedules, segmentation, deadlines, and efficiency (Menon

& Narayanan, 2015). Monochronic systems exist in more affluent countries with

sufficient resources (Sammut‐Bonnici, 2014). Northern American and northern

European countries generally follow the monochronic time system (Menon & Narayanan,

2015). In a polychronic time system, individuals attend to many things at once and

concern themselves more with personal relationships (Sammut‐Bonnici, 2014). People in

polychronic systems avoid stringent scheduling and instead focus more on executing

human transactions (Guo & Hu, 2013). They incorporate task-oriented activities with

socio-emotional activities (Menon & Narayanan, 2015).

Challenges During International Expansion

In addition to strategies, challenges also contribute to the processes of

internationalization. Economic growth and opportunities could result in major challenges

for MNEs (Bouyoucef & Chung, 2015). As emerging multinational firms pursue foreign

markets, they encounter the challenging task of balancing their commitment to acquire

tangible and intangible resources with the need to engage in cross-cultural relationships

to alleviate resource dependencies (Gaffney et al., 2013). Multinational firms face

multiple challenges due to the complexities of foreign markets and cultural differences

(Aguilera-Caracuel, Guerrero-Villegas, Vidal-Salazar, & Delgado-Marquez, 2013; Froese

et al., 2016). The leaders of these multinational organizations also encounter the

particular obstacle of demonstrating ethical leadership towards their diversified

subordinates through managing cross-cultural work forces, negotiating with multinational

associates, and cooperating with stockholders across borders (Eisenbeiß & Brodbeck,

2014).

Due to globalization, several challenges exist for managers and employees in

today’s work environment (Menon & Narayanan, 2015). Li et al. (2013) suggested that

MNEs should create developmental opportunities for their executives to help them deal

with intercultural challenges. A global economy requires ongoing interactions with

people from different cultural backgrounds and demands constant alternatives aimed at

enhancing cross-cultural encounters and competencies (Menon & Narayanan, 2015).

Once a company establishes an effective cross-cultural communication platform, the

racial diversity can serve as an enabling factor for a company’s enhanced competitiveness

(Andrevski, Richard, Shaw, & Ferrier, 2014).

Al-Husseini et al. (2013) posited that because of globalization, developing

countries are facing extreme obstacles that require competent and skillful leaders.

Aggarwell and Goodwell (2014) discussed the inherited challenges that result from the

driving forces of globalization, which include demographics, sustainability, and

technology. The challenge for global managers is to initiate ways to develop skills and

competencies that help adapt to different cultural settings (Menon & Narayanan, 2015).

Demographic pressures result in international instabilities in employee populations and

government capital (Aggarwell & Goodwell, 2014). Some global projects face the

challenges of clients neglecting to pay for costs of goods sold, the inability to find

qualified local personnel, and the failure to abide by contractual agreements (Barnwell,

Nedrick, Rudolph, Sesay, & Wellen, 2014).

The global economy encounters challenges in sustainability and climate change

(Aggarwell & Goodwell, 2014). In some areas in the Middle East, these environmental

challenges include lack of security of food and water, energy, desertification and land

degradation, urbanization, industrialization, and political instability (Rozsa, 2014). In the

Middle East, governments face the challenge of rebellion from Islamic extremists causing

turmoil within the regions (Fry & Walt, 2015). There are continuous uprisings in the

Middle East making the region a more volatile and insecure place to conduct business

(Afiouni, Ruël, & Schuler, 2014). In the West Bank, business owners are building

institutions leading to continued economic growth despite the country’s development

challenges (Sabella, Farraj, Burbar, & Quaimary, 2014). Most of these developing

countries in the Middle East are fast-growing markets that are attractive to companies like

Sony and Coca-Cola (Fry &Walt, 2015).

Bouyoucef and Chung (2015) discussed uncertainties that existed in economic

policies, political systems, foreign company regulations, infrastructures, contractual

agreements, and property protection. These uncertainties exist in the Middle East where

the political situation is very complex between the Arab and Israel governments (Rozsa,

2014). Due to these extreme consequences, many MNEs chose not to invest in foreign

countries (Bouyoucef & Chung, 2015). Other challenges involve talent management

issues where there is difficulty in attracting the appropriate talent in multiple labor

markets and producing global leaders (Creelman, 2014). MNEs require a pool of local

talent to enable the company to respond to the challenges of both existing and emerging

multi-regional markets (Fourné et al., 2014). Talent management obstacles include not

being open-minded enough to discover talent anywhere, neglecting the supporting forces

that assist in global organizational collaboration, and poor execution of global talent

management processes (Creelman, 2014).

Menon and Narayanan (2015) revealed that customers and service providers also

faced challenges due to cultural differences. Some cultural differences provide benefits

where others provide conflicts (Nguyen & Aoyama, 2013). Leaders that cannot readily

adapt to change and confront the complexities of cross border relationships will not

succeed in a multicultural environment comprised of different values, behaviors, and

attitudes (Tuleja, 2014). As people with diverse cultural backgrounds continue to engage

in the service industry, more individuals are facing different emotional demands that

require cultural skills and competencies to successfully compete in service-oriented

economies (Menon & Narayanan, 2015). As business executives frequently face these

challenges, the conceptual framework of CQ can serve as the platform for understanding

the phenomenon that supports international leadership (Capatina & Schin, 2013).

I explored various elements that challenge and encourage leaders seeking to grow

their companies through global expansion. Companies are encountering the challenge of

coping with global competitors that dominate the international market (Shah et al., 2013).

Some of these internationalization challenges include licensing, abiding by local

regulations, forming partnerships, mergers and acquisitions, and the development of fully

owned subsidiaries (Gaffney et al., 2014). It is imperative that companies focus on the

positive and negative aspects of international growth when entering the global arena

(Shah et al., 2013). Economic growth is the foundation for accomplishing social,

economic, and political developments (Abu-Eideh, 2014). The situation in the West

Bank has the potential for growth in the national and international sectors. Palestine

demonstrated enhanced developments in institutions generating economic growth

(Sabella et al., 2014). For instance, Palestine showed an 8% growth in GDP and a 44.3%

increase in the construction industry during the first quarter of 2016 compared to the first

quarter of 2015 (Palestinian Central Bureau of Statistics, 2016). Abu-Eideh (2014)

demonstrated a different perspective and revealed that even though Palestine witnessed a

growth in GDP, this growth was not enough to reach the demanded level of economic

development.

In addition to the West Bank, many regions have different cultures that have

diverse mindsets on how individuals and societies interact and function efficiently (Fung,

2014). The fundamental organizational transitions that exist during internationalization

impact global mindsets at both the individual and organizational level (Gaffney et al.,

2014). Major concerns during these transitions include that of international business

strategies and activities aligning with local and domestic laws and practices (Fung, 2014).

There is also the challenge of deciding which managerial practices need adjustments to

cooperate with cultural differences (Nguyen & Aoyama, 2013). International leaders

must establish objectives and endure potential channels for success while abiding by local

norms (Fung, 2014). Globalization brings in growth to a diverse world with mixed

cultural contexts that influence the way business leaders think when they expand their

business abroad (Saad et al., 2013).

Summary and Transition

In Section 1, the introduction includes a brief explanation of the foundation of the

doctoral study. The purpose of this qualitative single case study is to explore business

strategies used to grow companies through international expansion. Section 2 includes an

explanation of my role as the researcher and addresses the eligibility of the participants.

This section also includes an extension of the nature of the study through an elaboration

of the research method and design. Section 2 will consist of data collection specifications

and required reliability and validity factors. Section 3 will entail a summation of the

findings, application to professional practice, recommendations, and implications for

social change.

Section 2: The Project

The second section of this study provides valuable information about my role as

the researcher, the purpose of the study, and the criteria for selecting prospective

participants. Section 2 contains a discussion of the research project and an explanation of

various research methods and design approaches, including a highlight of the key

methodological and design considerations. I address the reasons for choosing a

qualitative method and a case study design to explore effective strategies that business

leaders use to grow their companies through international expansion. In this section,

there is a discussion of the population and sampling, the process of ensuring ethical

research, and the tools used during the data organization, collection, and analysis process.

Section 2 also encompasses a discussion on my plan to ensure the reliability and validity

of the study findings.

Purpose Statement

The purpose of this qualitative single case study was to explore strategies business

leaders used to grow their companies through international expansion. The target

population was business executives of a successful MNE that had a corporate

headquarters in the West Bank in Palestine. The results of this study could contribute to

social change by helping MNEs in the West Bank to grow, creating employment

opportunities, which would improve the living standard of its residents. MNE growth in

the West Bank could also lead to increased profits, which could be used to improve

infrastructure and government services for all residents.

Role of the Researcher

I am the primary research instrument in this qualitative case study. As the primary

research instrument, the researcher must collect and organize the data and analyze the

findings (Collins & Cooper, 2014). The researcher generates information from willing

participants (Whiteley, 2012). I used multiple ways of collecting data, including

conducting personal interviews and gathering additional company documents. One of my

roles as the researcher for this study was to select potential participants for face-to-face

interviews. My responsibilities entailed collecting data from the interviewees and

presenting a thorough explanation of the key elements of the data, while providing

recently published literature to support my evaluation.

In recent years, I gained extensive experience in international business and

developed long-lasting contacts with multinational executives. My 10 years of

experience as an international real estate developer enabled me to develop close

relationships with various multinational business owners. These relationships enhanced

my exposure to strategies used to grow companies through international expansion.

A U.S. government commission established the Belmont Report in 1979 to

establish ethical principles and guidelines for the involvement of vulnerable research

participants including minority groups (United States Department of Health & Human

Services, 1979). The Belmont Report is a synopsis of ethical guidelines that promote

high ethical standards in respect for persons, justice, and beneficence (Brakewood &

Poldrack, 2013). My role in ensuring ethical research was to assure that the subjects were

entering the research voluntarily and with equal treatment. The subjects encountered

minimal risks and were a part of a study aimed at improving international business

strategies. I selected the criteria for participants to comply with the Belmont Report’s

guidelines by eliminating vulnerable human beings. The participants received

notification that their identity remained confidential and that only the researcher reviewed

the interview notes, transcripts, and interpretive reports.

The mitigation of bias is a major obstacle for qualitative researchers utilizing

interviews to retain data from the participants (Chenail, 2011). A researcher can mitigate

bias by recognizing that multiple realities exist, outlining personal experiences and

viewpoints that could potentially be bias, and presenting a clear and accurate analysis of

the participants’ perspectives (Noble & Smith, 2015). I am a businessperson who

operates in multiple countries and acknowledge that certain biases exist as an

international business practitioner. In recognition of these biases, a high level of

openness to contrary evidence subsisted. To mitigate bias and avoid viewing the findings

from a personal perspective, I mentally prepared myself to conduct appropriate

interviews that did not limit my discoveries to what I thought I knew. My openness to the

inquiries enabled me to embrace the true information obtained from the participants’

views and meanings.

The use of a proper interview protocol and confirmation of interpretations reduces

bias and enhances validity (De Ceunynck et al., 2013). One rationale for the interview

protocol is to develop a dependable and consistent rapport with the interviewees (Derrett

& Colhoun, 2011). A well-crafted interview protocol can lead to a higher level of

dependability and consistency due to its purpose of reducing potential issues that may

arise during the interviews (De Ceunynck, Kusumastuti, Hannes, Janssens, & Wets,

2013). The interview protocol (see Appendix A) for this study included instructions

about the interview, open-ended interview questions, and recordings and note-taking

procedures to help mitigate concerns during the data collection process.

Participants

An essential requirement in the research design phase is to select the appropriate

participants (Marshall & Rossman, 2014; Sargeant, 2012). The objective is to select

eligible participants with enough experience to explain the phenomenon of interest

(Palinkas et al., 2015). The criteria for participant eligibility in this case study included

multinational business leaders who have successful strategies to grow their company

through international expansion. In qualitative case studies, the respondent should have a

significant amount of experience on the topic of interest (Palinkas et al., 2015; Sargeant,

2012; Yin, 2014). Each participant had at least 5 years of experience in implementing

international business strategies to grow their company through international expansion.

An essential requirement for a qualitative case study is for the researcher to

develop a working relationship with the subjects (Johnson, 2014; Meng, 2012). The

strategy for gaining access to eligible participants was through personal and professional

relationships with multinational business firms in the West Bank. These relationships

enabled me to gain access to potential subjects. Yin (2014) emphasized the importance of

identifying key informants for a successful case study. The importance of utilizing my

relationships with international business firms was to identify key participants that had

enough experience in internationalization strategies. The informants provided valuable

insight on my topic and directed me to potential participants that met the eligibility

criteria.

Significant strategies for establishing a rapport with potential participants include

a casual introduction followed by encouragement to engage in the study (Derrett &

Colhoun, 2011; Yin, 2014). The initial contact with each potential participant began with

a casual email discussing the purpose of the study. The use of e-mail in a globalized

world is a significant form of interaction (Al-Alwani, 2015; Lenters, Cole, & GodoyRuiz,

2014). After the initial contact through e-mail, each participant received a phone call

requesting a casual meeting in a comfortable setting to discuss the purpose of the research

and to highlight the major points in the informed consent form. A thorough

understanding of information will result in minimal misinterpretations and elevated levels

of trust (Johnson, 2014; Pinsky, 2013). I requested that each executive under study

complete the informed consent form to ensure that they fully understood the background,

procedures, confidentiality, compensation, benefits, risks, and inquiries related to the

research.

Research Method and Design

Research Method

In qualitative research, the researcher approaches the participants in an open and

exploratory manner, allowing for the development of explicit research and inquiries

emerging from the participant’s point of view (Fassinger & Morrow, 2013). The

qualitative approach provides the means of obtaining perspectives from personal

experiences within a cultural context (Lyons et al., 2013). Gringeri, Burusch, and

Cambron (2013) referred to qualitative research as a craft skill, where the researcher

establishes context-dependent decisions based on the advancements of the project. The

objective of using the qualitative method was to generate in-depth knowledge of this

business inquiry from the actual experiences of individuals in the business environment.

I selected the qualitative method to gain a deeper understanding of the strategies that

leaders utilize to expand their organizations internationally.

The other scholarly research methodologies are quantitative and mixed-methods.

In quantitative research, the researcher focuses on numeric measures to examine

statistical comparisons between variables (Thamhain, 2014). Researchers that utilize the

quantitative method comprehend the statistical correlations through numerical evidence

and rely on the ability to draw conclusions from the data (Cokley & Awad, 2013). The

quantitative approach can assist in administering samples of communities, analyzing

cause-and-effect relationships between variables, approving and disapproving theoretical

hypotheses, and clarifying numerical data (Fassinger & Morrow, 2013). I rejected the

quantitative method because it narrowed the spectrum of factors associated with my study

proposal to identifying statistical relationships and testing hypotheses (Yilmaz, 2013).

Thamhain (2014) contended that quantitative research no longer provides a complete

analysis of the inherent value of a proposal, especially factors that impact the study in a

non-linear fashion. Although the quantitative approach can contribute to the assessment

and selection of a field study, the qualitative method focuses more on the contextualized

study of subjects through interviews (Lyons et al., 2013), which better fits this specific

exploratory research on internationalization strategies.

The mixed-methods approach is a combination of quantitative and qualitative

methods in a single study used to obtain a more elaborate understanding of a subject of

interest (Venkatesh, et al., 2013). In mixed-methods research, the researcher conjoins

qualitative and quantitative data within a single study (Griensven, Moore, & Hall, 2014).

Mixed-methods research is a useful method for addressing the who, what, and where

questions of quantitative research and the why and how questions of qualitative research

(Frels & Onwuegbuzie, 2013). Qualitative research does not entail generating statistical

data between variables nor include a combination of methodologies to retain the

distinctiveness of each methodology (Kahlke, 2014). I did not choose the mixed-methods

approach given the exploratory nature of this study.

Research Design

Four qualitative research design options were taken under consideration for this

study: phenomenological, narrative, ethnographic, and case study. In phenomenological

research, the individual’s particular experience is the primary source of interpretation

(Bevan, 2014). The researcher utilizes the phenomenological design to gain access to a

phenomenon by focusing on the nature and the content of the participant’s lived

experiences (Chan & Walker, 2015). Gill (2014) asserted that phenomenological designs

are a combination of interrelated avenues consisting of a common ground in

phenomenological ideology, a distinct interest in the context of individual experiences,

pursuit to understanding the participant’s perspective, uniformed sampling, and a

thematic evaluation that requires originality and vision. The phenomenological design

was not applicable in this study because I did not focus on open-ended inquiries on the

lived experiences of individuals or their subjective meanings.

The narrative design was not an appropriate research design for this study. This

particular design involves telling a story based on a person’s life experiences (Stake,

2013; Yin, 2014). The narrative design was not suitable for this study because it focuses

more on the life story of the individual or small group (Hunt, 2014).

In ethnographic research, the investigator focuses on a specific phenomenon

within the culture and subculture of the participants (Crede & Borrego, 2013; Cruz &

Higginbottom, 2013). Through the ethnographic process, the researchers deeply involve

themselves in the participant’s social setting to gain a better understanding of distinct

concerns (Menon & Narayanan, 2015). Ethnography involves a deeper comprehension of

counter-subjectification, where the researcher positions him, or herself as subjects in the

participant’s world (Hampshire, Iqbal, Blell, & Simpson, 2014). The ethnographic design

requires intimate involvement in the participant’s environment and extensive time for

data collection (Jerolmack & Khan, 2014). I did not select the ethnographic process

because the nature of the design does align with the topic under study.

The case study design enables the investigator to systematically and thoroughly

research specific inquiries in natural settings (Cronin, 2014; Johnson, 2014). Using the

case study design enabled me to explore dimensions of global growth strategies from

different perspectives. Case study research is useful in exploring a complicated

phenomenon that requires a deeper investigation in a real-life setting (Dasgupta, 2015).

The case study researcher can analyze data from interpretations and experiences of the

participant (Suchan, 2014). Case studies consist of inquiries that are contingent on the

individual, resulting in different interpretations and experiences (Harland, 2014).

Bouyoucef and Chung (2015) used a case study platform to investigate the

internationalization strategy of an MNE and were able to discover successful entry

strategies to emerging countries despite the region’s economic and environmental

hardships. This study was a case study design because it applied to real scenarios that

stimulated innovative thinking and ideas for business practice. In essence, I learned from

the experiences of international business leaders as they inquired into their work

strategies.

In qualitative research, data saturation is a significant element of rigor (Morse,

2015). To achieve data saturation, there must be a significant amount of data to replicate

the study and the collection of data should result in no further themes (Fusch & Ness,

2015; Suri, 2011). Marshall, Cardon, Poddar, and Fontenot (2013) posited that in data

saturation, the researcher continues to interview new participants until the information

from the responses become redundant and no new data develops. In this single case

study, I reached data saturation after interviewing the second participant. The responses

from the second participant were repetitive and no new data emerged. The second

participant did not add any new data but instead elaborated more on the same content

from the first participant’s interview. Being that both participants grew the same

company through international expansion, they both utilized the same strategies and

conveyed the same experiences. The second participant encountered the same obstacles

and opportunities as the first participant during the company’s expansion, which resulted

in responses that were redundant.

Population and Sampling

Researchers carefully select the most suitable population for exploratory research

(Poulis, Poulis, & Plakoyiannaki, 2013). The target population for this study was

executives from multinational firms in the West Bank in Palestine. The first

multinational company I approached in the West Bank agreed to participate in the study.

This multinational firm, referred to as Company X, had a team of executives with

extensive knowledge on business strategies used to grow their company through

international expansion. Through purposeful sampling, I selected participants with

international business experience. Purposeful sampling enables the researcher to access

the suitable subjects in the field to establish data-rich knowledge on the topic of interest

(Suri, 2011). Suen, Huang, and Lee (2014) asserted that researchers who utilize purposive

sampling use their judgment to select participants to provide rich data based on the

purpose of the study. The basis of my purposeful selection process entailed targeting

participants that demonstrated the ability to operate their organizations in multiple

countries efficiently. Purposeful sampling enabled me to select eligible subjects with the

wealth of knowledge on strategies business leaders used to grow their company through

international expansion. Purposeful sampling is a necessary process in obtaining

authentic interpretations of findings to reach data saturation (Suri, 2011).

Researchers carefully select the most suitable population for exploratory research

(Poulis et al., 2013). The number of participants should reflect the amount of subjects

needed to obtain a sufficient amount of data (Stake, 2013; Yin, 2013). The population

consisted of four executives of a multinational firm in the West Bank. A minimal size

population is grounds for a more intimate case study analysis (McIntosh & Morse, 2015).

This case study required a smaller selection of subjects to gain an intimate perspective on

what strategies business leaders used to operate abroad. For the purpose of this

qualitative case study, the smaller number of participants was suitable to address the

research question and reach data saturation. Two participants were interviewed in this

study and I reached data saturation after the completion of the second interview. After

interviewing the second participant, I recognized that this participant did not offer any

new data but instead elaborated on the data that emerged from the first participant’s

interview. The data from the interviews became repetitious after the second interview

resulting in no new data. Both participants followed the same international business

policies as they grew the company in different foreign markets. The participants revealed

that they implemented the same international business strategies and shared the same

experiences as they grew the company through international expansion. The interviews

reached the point where the information within the data became repetitive.

Defining the sample size relied heavily on the point at which I reached data

saturation. Marshall et al. (2013) posited that gauging the appropriate sample size has a

direct connection to saturation. The objective of data saturation is to continuously gather

subjects to reach the period of which themes become repetitious and no new information

surfaces (Fusch & Ness, 2015). A more homogenous sample can increase the likelihood

of common themes and data saturation (Roy, Zvonkovic, Goldberg, Sharp, & LaRossa,

2015). Manson (2010) suggested that if saturation is the basis of qualitative research,

there is no limit to its achievement. Following the concept of saturation, my intentions

were to interview at least two participants until saturation occurred. Marshall et al.

(2013) suggested interviewing as few as three participants in a qualitative case study to

achieve data saturation. The number of participants in a qualitative study is a minimum

of two and is determined when the researcher collects enough information to reach data

saturation (Baker, Edwards, & Doidge, 2012). I recognized that I reached data saturation

when the information that emerged within the data became repetitive. The second

interview was an elaboration of the content from first participant’s interview. The themes

from the interviews were repetitious and no new information emerged. Both participants

followed the same corporate guidelines to expand internationally and encountered the

same experiences as executives of the same company. These factors contributed to my

recognition of data saturation and my decision to stop interviewing.

The criteria for selecting participants included business executives of a successful

multinational firm in the West Bank in Palestine. The participants were either owners or

leaders of a firm that operated in more than one country for at least 5 years. The selection

process must be appropriate and consist of participants who best represent or are

knowledgeable of the phenomenon under study (Elo et al., 2014; Poulis et al., 2013).

There must be a clear rationale behind the selection process aimed to satisfy a distinct

purpose related to the business inquiry (Cleary, Horsfall, & Hayter, 2014). In this case

study, I selected executives of a multinational firm with over 5 years of experience in

growing their company through international expansion.

The interviews took place at a neutral site free from interruptions. The location of

the interview is a crucial element in the data collection process (Doody & Noonan, 2013).

The researcher should conduct the interview at a time and place that is most convenient

for the interviewee (Ritchie, Lewis, Nicholls, & Ormston, 2013). The semistructured

interview entailed face-to-face contact, which is an essential component in creating a

rapport and developing rich qualitative information (Irvine, Drew, & Sainsbury, 2013).

Nelson, Onwuegbuzie, Wines, and Frels (2013) suggested that the interview should be a

therapeutic process resulting in a trusting collaboration between the researcher and the

informant.

Ethical Research

A measure to ethically protect the participant was to receive Institutional Review

Board (IRB) approval. Anderson and Cummings (2016) classified the IRB as an

institutional overseer of ethical conduct. The IRB ensures that the researcher has the

qualifications to conduct the study, abides by all governmental guidelines, and produces

the pertinent informed consent forms (Anderson & Cummings, 2016; Cseko & Tremaine,

2013). Walden University’s IRB approval number for this study was 10-03-17-0505361.

Informed consent refers to the rights of participants to acquire sufficient data on

their autonomous decisions while participating in research (Cseko & Tremaine, 2013;

Halkoaho, Pietilä, Ebbesen, Karki, & Kangasniemi, 2016). The researcher must provide

the subject with adequate information explaining the potential risks and benefits of

partaking in a study and must receive informed consent (Rao, 2016). The general

principles behind the informed consent process, is to maximize the probable benefits and

minimize the risks when participating in research (Cseko & Tremaine, 2013).

I provided each participant with a consent form and requested that they

thoroughly read and acknowledged the content. Each participant received a verbal

review of the consent form, agreed to the terms, and signed the form to proceed with the

interview. During the consent process, it was important to confirm that each potential

interviewee understood that their participation was completely voluntary and

confidential. Bromley, Mikesell, Jones, and Khodyakov (2015) specified that to maintain

voluntarism, the interviewer and interviewee should jointly expect the research to induce

truthful knowledge that is advantageous and not easily obtainable otherwise.

The participants had the option to withdraw from the research at any time. Most

researchers emphasize to the interviewees the option to withdraw from the study to

comply with ethical principles (Faisal, Matinnia, Hejar, & Khodakarami, 2014; Haahr,

Norlyk, & Hall, 2014). Furunes et al. (2015) promised the informants in their study

anonymity and the option to withdraw from the interviews to be ethically responsible. To

withdraw from the study, the participant had the option to inform me of their withdrawal

via email or phone. Once the subject submitted a withdrawal request, the data collected

from the participant was shredded and destroyed.

Researchers who offer incentives to participants are likely to influence them

(Amarasinghe et al., 2013). Johnson (2014) preferred non-monetary incentives for

participants due to lack of financial backing. For some individuals, the potential benefits

of the research alone can serve as an incentive (Robinson, 2014). The participants in this

study did not receive monetary incentives for participation to avoid any conflict of

interest. The downside to monetary incentives is that it may motivate participants to

fabricate the data during the interview (Robinson, 2014).

Confidentiality is the basis for protecting the privacy of the subjects and the data

provided by them (Check, Wolf, Dame, & Beskow, 2014; Johnson, 2014). To ensure

confidentiality, this study did not include the identities of the participants or the

organization. Referring to each interviewee by identifier code and maintaining a secure

encrypted file for each of them enhanced confidentiality. Each participant was assigned a

random identifier code, P1, P2, etc., and the organization was referred to as Company X.

The purpose of incorporating privacy preservation techniques is to remove unconcealed

identifiers from data results before publication (Erlich & Narayanan, 2014). Storing the

data from the participants in a safety deposit box for 5 years will protect the

confidentiality of the subjects. After the expiration of the 5 years, I will destroy all the

collected data related to the research by use of a shredding machine.

Data Collection Instruments

In qualitative research, the investigator focuses on the richness and quality of the

data collected (Anyan, 2013). In this case study, the data collection process entailed

gathering data from individuals that have international business knowledge. As the

primary data collection instrument, I collected data through semistructured interviews and

the examination of progress reports and international business policies from the company.

In qualitative research, the investigator seeks to gain a thorough understanding of the

phenomenon under study (Peredaryenko & Krauss, 2013). My primary point of interest

in this qualitative research inquiry was to obtain a deeper comprehension of

internationalization strategies from the perspective of knowledgeable participants.

The interview is the most crucial element in developing case study evidence (Yin,

2014). A semistructured interview is a common technique in qualitative research that

entails the use of prepared interview questions with the flexibility to explore clarification

(Doody & Noonan, 2013). When conducting a semistructured interview, the researcher

must structure the questions in a way that focuses on the topic using indirect questions

(Chan et al., 2013). I used semistructured interviews for the data collection process to

encourage the participants to speak freely about internationalization strategies. The

interviews included questions located in Appendix A. The interviewer uses open-ended

questions to collect data and group the responses into specific themes or codes for

analysis (Lewis, 2015; Williams, 2014). Most participants offer valuable data from their

own experiences, but require restrictions on the amount of information they share (Doody

& Noonan, 2013). The semistructured interviews for this qualitative inquiry included

open-ended questions to encourage depth and richness in the participant’s responses.

In addition to conducting semistructured interviews, there was a thorough

investigation of company documents including internal records on international business

policies and progress reports. The analysis of organizational documents is common in

qualitative inquiries (Bowen, 2009). Analyzing archival records can serve as supporting

evidence and assist in developing convergent avenues of inquiry (Yin, 2014). Similar to

other analytical approaches, the evaluation of documents requires the investigator to

analyze and interpret information to develop an understanding of particular knowledge

(Corbin & Strauss, 2008). I collected available documentation to gain a more thorough

understanding of the case study. Some of the documents included financial reports to

measure the company’s progress before and after they began operating in a foreign

country. Other documents included the internal records explaining the strategies used to

successfully operate in a foreign environment. The purpose of collecting these

administrative and public reports was to accurately measure the perceptions of the

informants in conjunction with the strategies they used to address international expansion.

Qualitative researchers use interviewing as a preferred technique to produce and

collect information for their research (Chenail, 2011). Semistructured interviews allow

the participants to convey their concepts openly without diverting from the topic of

interest (Von Wagner et al., 2014). The semistructured interviews began with six

openended questions catered towards the exploration of internationalization strategies of

multinational firms. The open-ended interview questions enabled the participants to

speak freely about their experiences with effective international business strategies.

Qualitative secondary data is the preexisting information that researchers use to enhance

methodological understandings (Irwin, 2013). The use of secondary data, including

internal organizational reports and policies, enhanced the understanding of my

discoveries and broadened the range of findings related to internationalization strategies.

I used semistructured interviews to gather valid and reliable data and used preexisting

document based information to gain additional knowledge and interpretations on the

business inquiry.

In order to ensure reliability and validity, the research must accurately reflect the

data and be consistent (Noble & Smith, 2015; Saunder, Lewis, & Thornhill, 2016).

Reliability and validity are essential criteria used to evaluate quality research (Noble &

Smith, 2015). Member checking is a validation technique that researchers use to ensure

accurate interpretation of the participant’s responses (Birt et al., 2016). Through member

checking, I shared my interpretive reports of the interviews with the participants to assess

the credibility of the qualitative results. Caretta (2016) increased validity by using

member checking as part of a combination of qualitative methods in the form of

pamphlets to counter check preliminary data. The member checking process allows the

participants to confirm or challenge the interviewer’s interpretations of the interviews

(Reilly, 2013). I conducted member checking interviews, allowing the participants to

confirm the accuracy of the interpretive reports and make the comments or corrections

needed for validation.

Data Collection Technique

The appropriate data collection technique for this qualitative case study included

semistructured face-to-face interviews and a review of company documents.

Semistructured interviews allow the researcher the flexibility to communicate freely with

the participant about the phenomenon of interest (Anyan, 2013). Face-to-face interviews

are a common element for data collecting in research design and encourage the

respondent to speak candidly (Bowden & Galindo-Gonzalez, 2015; Szolnoki &

Hoffmann, 2013). During a face-to-face interview, the researcher interviews the

participant in person to collect data on the business inquiry (Spence & Liu, 2013). The

interviewer should record each interview with the responder’s permission and carefully

take notes to later compare with the recordings (Williams, 2014). Audio-recordings

enhance the authenticity of data by limiting the risk of particular data filtering by the

examiner through audio playback (Chew-Graham et al., 2013; Kowitlawakul, Wang, &

Chan, 2013). The note taking process should be just enough information to create rich

passages that emulate the participant’s perceptions on the topic (Yin, 2011). The

interview protocol in Appendix A includes the introduction, time, date, and location of the

interview. The interview consisted of six open-ended questions followed by probing

inquiries and member checking. I audio-recorded each interview, took notes, and created

reports of my interpretations of their responses for analysis and participant review.

The analysis of organizational documents serves as supporting evidence to gain a

better understanding of a particular inquiry (Corbin & Strauss, 2008; Yin, 2014).

Researchers use secondary data sources to provide sufficient accuracy to explore a

phenomenon of interest (Fleischhacker, Evenson, Sharkey, Pitts, & Rodriguez, 2013). In

alignment with this view, Putnam, Molton, Truitt, Smith, and Jensen (2016) believed that

it was possible to gain advances in knowledge through secondary data sources. In this

qualitative study, I conducted semistructured face-to-face interviews followed by a

collection of administrative documents related to the business inquiry.

The advantages of face-to-face interviews involve the interviewer and interviewee

being able to physically see one another. This advantage allows the researcher to observe

the participant’s specific tones and body language to reduce misinterpretations (Bowden

& Galindo-Gonzalez, 2015). Barnwell et al. (2014) stated that face-to-face interaction is

an irreplaceable form of communication. Face-to-face interviews enable the researcher to

obtain an immediate response, build a rapport, and be certain of the participant’s identity

(Bowden & Galindo-Gonzalez, 2015). This type of interview is flexible, adaptable, and

relies on one-on-one interactions regulated within the interview setting (Szolnoki &

Hoffmann, 2013).

The use of open-ended questions in semistructured interviews is an advantage that

enhances the flexibility of the researcher to search for clarification of an inquiry (Tran,

Porcher, Falissard, & Ravaud, 2016). Most responders will willingly contribute data, but

require direction on how much information they should disclose (Doody & Noonan,

2013). Investigators seeking to explore a phenomenon are likely to use open-ended

interviews for their investigation (Chenail, 2011). The open nature of the interview

questions promotes depth and validity and assists in the development of new themes

(Doody & Noonan, 2013).

A disadvantage in administering face-to-face semistructured interviews may entail

the participant’s feeling of self-consciousness when asked to answer sensitive questions

(Doody & Noonan, 2013). This situation may result in less conventional and socially

undesirable responses (McIntosh & Morse, 2015). Other disadvantages include the

impact of the appearance of the interviewer on the interviewee and the time and cost of

this type of interview (Doody & Noonan, 2013). A face-to-face interviewer can influence

the interviewee’s responses based on appearance and bias, which can hinder the

credibility of the results (McIntosh & Morse, 2015). Bias can play a significant role in

research studies and is a major challenge for qualitative researchers (Chenail, 2011;

Onwuegbuzie et al., 2010). The participant may contribute a non-personal, dishonest

view to please the interviewer (Doody & Noonan, 2013). The disadvantages of data

collection technique could compromise the quality of the study.

The advantages of using secondary data are to save time and money and maintain

a higher quality of information (Smith, 2006; Vartanian, 2011). Generally it is easier and

less time consuming to collect administrative documents than to actually collect, analyze,

and interpret the data (Saunder et al., 2016). In some cases, secondary data is more

accessible and may have a higher level of accuracy and validity (Bryde, Broquetas, &

Volm, 2013). The disadvantages of secondary data may include collecting information

that does not align with the research question or obtaining inaccurate data (Denscombe,

2007).

A pilot study was not applicable in this qualitative case study. Although a pilot

study is useful in evaluating an interview protocol and discovering researcher biases

(Chenail, 2011), it is not necessary in this research study. Williams (2014) recommended

pilot studies to measure the reliability, validity, and acceptability of collected data.

Conversely, Pritchard and Whiting (2012) asserted that pilot studies were unnecessary

when the investigators have the option to learn on site from the participants under study.

Member checking is a research process that plays a significant role in validating

information. Researchers use member checking to gauge the accuracy of the participant’s

responses (Andrasik et al., 2014, Birt et al., 2016; Koelsch, 2013). Member checking is

the process of bringing back an interpretive report of the interview to the interviewee for

review and confirmation (Harvey, 2015). Each multinational executive had the

opportunity to review the interview reports and confirm the validity and trustworthiness

of the findings. I used member checking to enhance the reliability and validity of the

research as part of the process of confirming data saturation.

Data Organization Technique

Reflective journals are recorded detailed descriptions of various concepts, events,

and thoughts (Davies, Reitmair, Smith, & Mangan-Danckwart, 2013). Reflective

journals are an effective tool in documenting fieldwork experiences and the reasoning

behind those experiences (Applebaum, 2014). This tool enables the researcher to engage

in critical thinking and reflect on his or her experiences (Everett, 2013). Reflective

journaling is an effective method used to explore the experiences of the participants

(Davies et al., 2013). As the researcher, I used reflective journaling to record

observations of the participants. The journals included detailed notes from the interviews

to supplement the participants’ responses to the interview questions.

The use of a research journal is helpful in recording events, interview dates and

times, location of interview, and documents collected during the study (Richie, Lewis,

Nicholls, & Ormston, 2013). The organization of data enables the researcher to

categorize information by participant, date, application, and themes (Campbell, Heriot,

Jauregui, & Mitchell, 2012; Flannery & Gormley, 2014). Through journaling, I scanned

the interview notes and administrative documents, recorded the dates and times of the

interviews, and categorized the themes that emerged from the participant responses.

Storing the data on a flash drive occurred after the completion of the study. The flash

drive will remain in a safety deposit box for a period of 5 years and then destroyed to

maintain the confidentiality of the interviewees.

Data Analysis

Most qualitative case studies entail a combination of multiple methods to

strengthen the validity of the case study analysis (Yin, 2013). Triangulation occurs when

the researcher utilizes more than one methodological approach to obtain an in-depth

understanding of the phenomenon of interest (Wilson, 2014). The process of

triangulation relies on the use of different sources to generate comprehensive conclusions

(Cope, 2014). Four different types of triangulation exist, including data triangulation,

investigator triangulation, theory triangulation, and methodological triangulation

(Gorissen, van Bruggen, & Jochems, 2013). Methodological triangulation was the most

suitable data analysis process for this qualitative case study. Methodological

triangulation is a common form of triangulation that involves the use of more than one

method to research a phenomenon (Heale & Forbes, 2013). Instead of applying the

“across method” of methodological triangulation, which involves the use of both

quantitative and qualitative data-collection techniques, I implemented the “within

method,” where the focus primarily remained on qualitative (Bekhet & Zauszniewski,

2012). The use of methodological triangulation helps in conforming information from

different data collection methods to ensure in-depth data (Fusch & Ness, 2015).

The most logical and sequential data analysis process for this study was the

thematic approach guided by Yin’s five-phased analysis cycle. The analytic process

includes (a) compiling, (b) disassembling, (c) reassembling, (d) interpreting, and (e)

concluding (Cope, 2014; Yin, 2011). Following the five-phased cycle, the analysis

started with a compilation of data from the interview notes, recordings, and

organizational documents. This analytic process enabled me to compile information,

break down the data to create themes, and develop a conclusion based on the data.

As prominent research tools, qualitative data analysis software is used to support

analyses of data collected through interviews, organizational documents, and open-ended

interview questions (Woods et al., 2015). The use of applications software can help

identify prominent themes (Black, Palombaro, & Dole, 2013). Many researchers use

Microsoft Excel spreadsheets to identify themes in qualitative studies (Fenn, Sangrasi,

Puett, Trenouth, & Pietzsch, 2015; Wun, Payne, Huron, & Carpendale, 2016). The

researcher enters data into the spreadsheet to visualize and organize data (Wun et al.,

2016). I implemented coding procedures to maintain the confidentiality of the

participants’ words and experiences and input them into the spreadsheet to identify key

concepts. The individual coding grouped with the data from the administrative

documents and interview notes in Excel enabled me to develop themes centered on the

central research inquiry.

Data analysis will involve a search for recurring themes, insights, and concepts

(Yin, 2014) that will assist in a greater comprehension of internationalization strategies.

The development of explanations came from thematic patterns from the interviews, notes,

and transcriptions of the audio recordings. I used an inductive approach to understand the

perceptions of the respondents and the meanings behind the collected data. Features of

the inductive approach include an exploration of evidence to recognize developing

themes, beginning the study with a defined research inquiry, sampling from a specific

demographic, and interpreting rich data (Liu, 2016). Greenfield et al. (2015) used the

inductive approach to facilitate the exploration of themes in narratives while maintaining

a sample criterion. Khaikleng, Wongwanich, and Sujiva (2014) discovered the benefits of

the inductive method in theory development using data from stakeholder interviews and

site observations. Generating and refining themes will continue until no new themes

emerge. Charach, Yeug, Volpe, Goodale, and dosReis (2014) continued to collect data

until no new themes surfaced in their qualitative study. The focus remained on the key

emerging themes in conjunction with recently published literature on internationalization

strategies and the conceptual framework of cultural intelligence.

Reliability and Validity

Reliability

Reliability in a study is the valuation of consistency and reproducibility in the

research results (Williams, 2014). With reliability, results may be transferable to a

broader society and affirm change in processes (Birt et al., 2016). The basis for

confirming reliability in qualitative studies relies on the investigation of dependability

(Wang & Lien, 2013).

Dependability refers to the constancy of information over time and through

various scenarios (Elo et al., 2014). To ensure the dependability of data over time, I

elected to apply member checking. Member checking the participants occurs after the

initial collection of data from the interviews allowing time in between (Birt et al., 2016).

Through member checking each interviewee receives an interpretive report of the

interviews allowing them to confirm the validity and trustworthiness of the research

(Andrasik et al., 2014; Harvey, 2015). Member checking allowed the interviewees to

review my interpretation of the interview to assure dependability.

Validity

Validity pertains to the accuracy of the findings in relation to the data (Noble &

Smith, 2015). The use of specific validity criteria enhanced the credibility of the

research. Dependability, credibility, transferability, and confirmability are key elements

in evaluating the rigor of qualitative studies (Cope, 2014; Houghton, Casey, Shaw, &

Murphy, 2013).

Credibility refers to the truthfulness of the information from the participant and

the researcher through engagement, different forms of observation, and audit trails (Noble

& Smith, 2015). The credibility of a qualitative study relies on assuring that a match

exists between the participants’ representations and lived experiences (Cope, 2014). I

elected to ensure credibility through member checking and methodological triangulation.

Black et al. (2013) identified triangulation and member checking as crucial approaches in

establishing credibility in research. Triangulation allows the researcher to use different

methods to ensure credibility (Gorissen et al., 2013; Yin, 2014). The use of multiple

independent sources of data and methods of collection in the study increased the level of

credibility. Member checking is a technique used to explore the credibility of outcomes

(Houghton et al., 2013). Through member checking, each participant had the opportunity

to review the interpretive reports of the initial interviews to ensure accuracy and

credibility.

Transferability refers to the extent of which findings are transferable to different

environments or contexts (Cope, 2014; Elo et al., 2014). To meet the standard in

qualitative research, the findings must be meaningful to individuals beyond the research

and a connection should exist with their own experiences (Burghardt, Mayhew, Lavis, &

Dobrow, 2013). In this qualitative study, the readers and future researchers will establish

the extent of which the findings are transferable. I affirm that the reader has enough data

on the research and the participants to assess the adequacy and transferability of the

results. Researchers addressed transferability by offering a thorough explanation of the

context of their research (Black et al., 2013). Future researchers may determine whether

or not the results of the research are transferable under different conditions (Houghton et

al., 2013). Enabling others to determine the transferability of the findings occurred by

reaching data saturation.

Confirmability refers to the researcher’s method in assuring that the participant

represents accurate, consistent viewpoints in their responses (Cope, 2014).

Confirmability involves an analysis of data and an auditing process that ensures that the

findings reflect the data collected (Venkatesh et al., 2013; Yilmaz, 2013). I enhanced

confirmability by asking probing questions during the semistructured interviews and

conducting follow up member checking interviews. Probing questions is an effective

technique in preparing the interview allowing the interviewee to mention issues that were

unclear or not thought of before (Chan et al., 2013; Nguyen & Aoyama, 2013). The use

of probing questions enabled me to confirm a level of authenticity of the respondent’s

answers to the interview questions. These questions can also assist the researcher in

achieving data saturation (Fusch & Ness, 2015). Follow up member checking interviews

allow the researcher to forward their interpretations of the participants’ responses to the

interview questions (Birt et al., 2016; Saunder et al., 2016). Member checking is a

technique for confirming the accuracy of the data from the interviews through participant

validation (Cope, 2014; Reilly, 2013). Conducting follow up member checking

interviews enabled me to communicate my interpretations of the responses permitting the

interviewees to confirm or challenge the interpretive reports.

Data saturation can have a significant impact on the validity of a study (Fusch &

Ness, 2015). The researcher achieves data saturation when no new data or themes

emerge (Tran et al., 2016). Data saturation occurs when the analysis occurs in

conjunction with data collection in a repetitious cycle (Sargeant, 2012). To achieve data

saturation, I continued interviewing until there was enough data to replicate my research

and no new data or themes emerged.

Summary and Transition

Section 2 included a description of my role as the researcher and the participant

selection process. In this qualitative single case study the sample population included

executives of multinational firms in the West Bank. Section 2 also includes the ethical

standards involving informed consent processes followed by a description of data

collection instruments, data collection, and organization techniques. I selected

methodological triangulation for data analysis and elected to use various methods

including member checking, semistructured interviews, and document review to enhance

the reliability and validity of the study. Section 3 entails a presentation of the findings,

application to professional practice, an elaboration of the implications for social change,

and recommendations for action and further research.

Section 3: Application to Professional Practice and Implications for Change

Introduction

The purpose of this qualitative single case study was to explore strategies

multinational executives used to grow their companies through international expansion. I

conducted face-to-face semistructured interviews with two business leaders of a

multinational firm who had at least 5 years of international business experience. Further

data collection entailed a review of company progress reports and international business

policies. Following the initial interviews, I used member checking with each participant

to ensure that my interpretations of the initial interviews were accurate. Prior to the

interviews, each participant reviewed and signed the informed consent form and agreed to

participate in the study.

The interviews took place in the conference room of the company, in a setting that

was free of disruptions from employees. I asked six questions to gain an in-depth

understanding of what strategies business leaders used to grow a company through

international expansion. In this section, I provide (a) an overview of the study, (b) a

presentation of the findings, (c) applications to professional practice, (d) implications for

social change, (e) recommendations for action, (f) recommendations for further study, (g)

my reflections, and (h) conclusion.

Presentation of the Findings

This study was designed to answer the following research question: What

strategies do business leaders use to grow their companies through international

expansion? The company under study was a banking institution that offered corporate,

retail, and investment banking services throughout the Middle East with a headquarters in

the West Bank in Palestine. Three themes emerged from the data analysis of responses to

the interview questions of the two international business leaders and my review of

company progress reports. The progress reports revealed increased revenues over the

years since the company began to expand into foreign markets. Further support of the

findings in this study was evident in Company X’s international business policy, which

served as a guide to the process of growing the company through international expansion.

The initial interview lasted approximately 25 minutes each and consisted of six

interview questions. After the initial interviews, follow-up member checking took place

with each participant to confirm the accuracy of the findings. Member checking for each

participant lasted approximately 10 minutes and took place in the same company

conference room, approximately 1 week after the initial interviews. During the process, I

asked each participant, P1 and P2, to review my interpretive reports of the interviews to

either challenge or validate my interpretations of their responses. Both participants

confirmed the accuracy of the interpretive reports.

The review of administrative documents enhanced my understanding of the

company’s internationalization strategies. For triangulation purposes, I used the data

from company documents to confirm the data from the interviews. The company’s

progress reports entailed a thorough analysis of Company X’s growth from 2011 to the

third quarter of 2017. The reports showed evidence of financial growth from 2011 to

2017, when the company began expanding its operations into multiple locations in the

West Bank, Israel, and Jordan. As part of Company X’s internationalization strategies,

the company developed international business policies to guide them during their

expansions. Company X’s international business policies included compliance

requirements in accordance with international and regional standards, a know your

customer policy, protocol for conducting regional feasibility studies, and integration of

international ethical, social, and environmental initiatives. From the analysis of the data

collected from the interviews and the review of administrative documents, three main

themes emerged: (a) international knowledge and adaption to local conditions, (b)

strategic partnerships, and (c) diversification and specialization.

Theme 1: International Knowledge and Adaption to Local Conditions

The first theme that emerged from the data analysis was international knowledge

and adaption to local conditions. Pellegrino and McNaughton (2015) defined

international knowledge as the knowledge gained through experience while conducting

business in foreign countries. Both participants (P1 and P2) shared the importance of

adapting to local conditions as they explored different countries for potential

opportunities for growth. P1 and P2 asserted that gaining international knowledge and

adapting to local conditions was a crucial strategy needed to operate successfully in other

countries. Both participants emphasized the need for international knowledge and

adaption processes to grow the company through international expansion.

International knowledge. P1 and P2 explained that conducting market

feasibility studies contributed to the enhancement of their international knowledge of

foreign markets. The participants asserted that conducting market feasibility studies

helped determine the depth and conditions of a particular territory and its ability to

support the company’s banking services. P1 and P2 suggested that conducting market

studies enhanced their knowledge and capabilities to expand their business into different

countries. P1 explained that by conducting market studies, the company was able to gain

a thorough understanding of foreign conditions, obstacles, opportunities, and competition.

P2 expressed the importance of conducting market studies for international growth and

how conducting market studies played a major role in finding potential locations that had

limited competition, resulting in opportunities for the company to tap into underserved

markets.

To enhance international knowledge on the needs and wants of the consumers

abroad and to gain a thorough understanding of economic and environmental conditions

within the region, P2 relied heavily on conducting market studies. P2 commented, “You

need to understand the new market very well before you even think about it.” Both

participants underscored the importance of conducting market feasibility studies to build

their international knowledge and also emphasized the importance of adapting to local

conditions.

Company X’s feasibility report revealed that the company focused on specific

factors including project costs, demographics, environmental conditions, local

regulations, and banking trends to determine the viability of building a new branch in an

location of interest. The goal of the company’s feasibility study was to thoroughly

understand the potential obstacles and opportunities that may occur when developing new

projects in an environment that was different than their home country. The company’s

feasibility report enabled the company to make decisions about where to conduct

business, what market they would target, potential challenges, competition, total costs of

the project, and revenue projections. The findings from the document review support the

participants’ explanations in the interviews. Both participants explained that gaining

information through market studies strengthened their international knowledge when

entering a foreign market and helped them develop specific banking services that targeted

underserved demographics. The participants revealed that they maintained an advantage

over their competitors by conducting market studies. P1 shared that through market

studies the company was able to increase their understanding of target markets, the

environment, and the competition in different regions. P2 commented that conducting

market studies allowed them to objectively collect and analyze data about competition,

local norms, and specific underserved markets.

The participants’ concept of international knowledge aligns with various

peerreviewed studies. The participants’ emphasis on obtaining knowledge on the depth

and conditions of a particular location is similar to Pellegrino and McNaughton’s (2015)

discussion of the importance of international knowledge when introducing a new product

into a foreign market. This theme aligns with the work of Fletcher et al. (2013), which

emphasizes the need for international knowledge to operate effectively in foreign markets

and to maintain a competitive advantage. International knowledge is an essential

component for sustainable growth and performance (Witherspoon et al., 2013).

Andersson, Dasí, Mudambi, and Pedersen (2016) extended this view on the importance of

international knowledge and confirmed that international knowledge was a key concept in

worldwide economic growth in addition to technology and innovation. The participants’

emphasis on international knowledge aligns with Liu and Giroud’s (2016) study where

the authors focused on acquiring external knowledge beyond organizational boundaries.

The participants relied on feasibility reports to enhance their knowledge and capabilities

before expanding to different countries. Lui and Giroud asserted that by gaining

international knowledge and understanding foreign conditions, MNEs could establish

unique internationalization strategies before entering a new foreign market. By

enhancing their international knowledge, the participants were able to understand the

challenges and opportunities before entering a new foreign market.

Adaption to local conditions: As P1 and P2 explored different countries for

potential opportunities for growth, the participants quickly recognized that every region

had its own local conditions, including cultural differences, different sets of rules and

regulations, and accessibility. The participants asserted that a thorough comprehension of

local conditions helped them overcome obstacles and improved their chances of success

within the region. P1 and P2 made it a priority to understand the regions cultural

similarities and differences, government rules and regulations, and the countries’

accessibility as they grew the company through international expansion.

As Company X began expanding operations to different countries, the company

experienced differences and similarities in local cultures and norms. Some of the

differences the participants experienced included behavior patterns and traits in various

regions that followed the same religious practices as their home country. Despite the

similarities in religion, some of the people in different regions displayed outward

behaviors that appeared to be more Westernized and modern as opposed to more

traditional and conservative. P1 suggested that even though some countries they targeted

shared the same religious beliefs and spoke the same language, there was no guarantee

that the locals would embrace the products that Company X had to offer. P2 experienced

major culture shocks in some regions the company internationalized in that seemed

similar on the surface, but was actually more different than anticipated.

In an increasingly globalized and interdependent world, MNEs focus on

leveraging similarities and differences in cultural conditions to identify potential target

markets (Gelfand, Aycan, Erez, & Leung, 2017). P1 expressed that in order to gain a

thorough understanding of cultural conditions, one must consider continuous visitations

to the country of interest and learn the culture by communicating with the locals

personally. P1 and P2 preferred frequent visitations to potential countries because it

allowed them to understand the mindsets of the locals before expanding their operations

to the region. Many countries have different cultures with different mindsets on how

individuals interact (Fung, 2014). The transitions that occur during an international

expansion influence the mindsets of the individual and the organization (Gaffney et al.,

2014). P1 said: “You need to study the culture, the market, the competition, and also

consumer behavior.” Taking these steps enabled Company X to better adjust to the

cultural mindset of their target market.

In addition to adjusting to local cultures and norms, both participants suggested

that a thorough comprehension of government rules and regulations was a crucial element

that determined the success or failure of a firm seeking to grow their company through

international expansion. P1 and P2 discussed the importance of understanding local

government ordinances. P1 referred to government regulations as the “main barrier.” P2

referenced governmental regulations as a “barrier to entry” that requires knowledge from

an experienced local partner. P1 recalled a scenario where Company X invested in a

country that appeared to have low barriers to entry. Over time, Company X realized that

although the company encountered minimal challenges entering the market, the company

suffered greatly in exiting the market due to stringent governmental regulations. P1

referred do the dealings with these inflexible regulations as a learning experience that

impacted future decision-making when exploring business ventures in foreign countries.

Hafner-Burton, LeVeck, and Victor (2017) supported the importance of understanding the

intricacies of government in a targeted area before entry. Hafner-Burton et al. posited that

a poor understanding of governmental regulations could lead to negative outcomes.

The participants suggested that thoroughly comprehending local ordinances helped

Company X better select countries of interest for their expansion.

Government regulations play an influential role in internationalization processes

(Afsharghasemi et al., 2013). Although both participants considered governmental

regulations to be an obstacle, they believed that understanding the local rules and

regulations could help ease the process of expediting government requirements as they

grew the company through international expansion. This concept is evidenced in the

company’s compliance and regulations section of their international business policy, “To

maintain the highest levels of transparency and compliance in accordance with

international and regional standards as well as the governance procedures and regulations

as stipulated by the Palestinian Authority.” Part of Company X’s international business

policy was to “foster strong relationships with several international and foreign

government agencies. The company’s reputation of compliance has facilitated its

growing network of correspondents and partnerships.” By adhering to company policy,

Company X promoted an open mindset through international knowledge to adjust to both

different cultural norms and foreign government regulations, which is a strategy they

believed, led to the company’s fast international growth.

P1 and P2 expressed the importance of having access to a country to grow the

company through international expansion. P1 explained how he learned about the

countries’ accessibility through frequent visitations and relationships with local partners.

P1 stated, “ You need to access the country easily so you can control your business.” P2

inferred that reaching the company locations in other countries was extremely important

to succeed in the region. P1 commented that training the employees would be difficult if

they are not reachable. P1 shared an example of negotiating a deal in an area that he

believed was a promising location to expand Company X’s operation. P1 recognized that

the location was too far to get to and complicated to reach. Both participants frequently

encountered travel restrictions due to the location of their headquarters. The corporate

headquarters of Company X is located in the West Bank, which is a territory near the

Mediterranean coast of western Asia, known for its political and environmental

challenges. P1 and P2 sometimes faced major obstacles in exploring potential locations

due to frequent bridge closures or obtaining visas to travel. P1 discussed one occasion

where the company invested funds in a location that was not easily accessible. Over

time, the distance resulted in a loss of interest leading to poor management and financial

losses.

The concept of having access to a country to expand a business is in line with

Buckley’s (2016) research on considering location in internationalization. Buckley

asserted that MNEs should consider the distance and accessibility between locations to

avoid problems of governance, which can negatively affect the company as a whole. The

participants shared that having easier access to other countries enables them to control

their operations more efficiently. Johanson and Vahlne (2013) suggested that companies

should develop relationships or utilize their existing relationships with credible contacts

to ease the process of accessing different regions. By capitalizing on foreign

relationships, companies can identify and exploit opportunities in different markets

without the challenge of gaining access to a country (Johanson & Vahlne, 2013). The

participants’ experiences in accessibility enabled them to enhance their knowledge on

seeking opportunities in countries that are more accessible in order to control their

operations successfully.

Correlation to conceptual framework. Theme 1 correlates to Early and Ang’s

(2003) CQ theory. Early and Ang proposed that individuals with CQ have the capability

to successfully function in different cultural settings. Each participant displayed evidence

of CQ theory in their exploration of how businesses function in different cultural

environments. Both participants invested extensive time and energy in understanding the

cultural environments first before expanding to different regions. Once the participants

established their business in a new country, they focused on adapting to the local culture.

By adapting to the local culture, Company X was able to function successfully in a

foreign environment. The participants exhibited characteristics of CQ in their

international leadership practices where they displayed intercultural competence when

dealing with the complexities of developing relationships in an environment that has

cultural differences. The participants relied on obtaining international knowledge and

adapting to local conditions to enhance their individual competencies to function in

different cultural settings.

Early and Ang’s (2003) four facets of CQ are made up of the cognitive,

metacognitive, behavioral, and motivational. The participants displayed evidence of

cognitive CQ by expressing their understanding of different cultural structures and their

knowledge of foreign practices and beliefs through proactive learning and exposure to

different cultural environments. An individual with cognitive CQ understands the

similarities and dissimilarities of culture and have general knowledge structures

pertaining to culture (Ang & Van Dyne, 2015; Charoensukmongkul, 2015). By

evaluating and understanding their own knowledge and behaving accordingly in

crosscultural environments, the participants were able to successfully operate their

businesses in different countries. The participants paid close attention to the formalities

of their international colleagues by noticing the everyday protocols they respected and

minor courtesies they engaged in. For instance, when P1 visited Egypt to evaluate the

market, he discussed how his collogues enjoyed evening festivities every night. P1

recognized that in order to develop relationships with the appropriate partners, he needed

to adapt to this liberal way of life that he was not accustomed to in his home country. P2

shared his experience when he had to negotiate with Israeli politicians and had to

accommodate the their stringent formalities when establishing a bank in Jerusalem. The

participants revealed that they possessed cultural awareness and knowledge of local

norms and practices through their due diligence and exposure to different cultural

settings.

Theme 2: Strategic Partnerships

The second theme that emerged from the data analysis was strategic partnerships.

The participants asserted that finding the “right strategic partner” was an important

strategy used to expand Company X internationally. P1 and P2 concluded that building

relationships with the appropriate partners not only increased their confidence and

motivation to expand internationally, but also helped mediate barriers during the process.

Both participants preferred partners that were local to the country of interest, trustworthy,

and knowledgeable. Cihelková, Nguyen, Wožniaková, and Straková (2017) referred to

strategic partners as individuals or institutions that help safeguard and promote

sustainable growth and stability. The participants identified strategic partners as legal

councilors, local shareholders, and multinational institutions that had strong ties with the

local community.

P1 and P2 were advocates for developing strategic partnerships with legal

councilors when expanding their operations to different countries. P1 referred to local

legal councilors as “credible partners that you can potentially trust and depend on.” P2

elaborated on the importance of strategic partnerships by explaining how their

understanding of legal and economic conditions and regulations came from a

knowledgeable legal partner. P2 further explained that the legal partner simplified

business processes within the region by offering advice on how to deal with potential

legal issues and the cost of resolving them. Maintaining legal partnerships enabled the

participants to understand the formalization of local rules, the roles of intermediaries, the

methods in which to negotiate, the costs of business transactions, and the challenges

institutions faced when conducting business in a foreign country. The participants

suggested that different societies had different rules and ways of ensuring compliance.

P2 shared that their strategic legal partner “made everything flexible before deciding to

go.” P1 suggested that companies exploring opportunities abroad should seek the

assistance of knowledgeable legal partners to help mitigate rules and regulations that

emerge when functioning in a foreign environment.

The participants further discussed the importance of forming strategic

partnerships with local shareholders to help navigate business transactions in areas the

company wanted to expand in. P1 and P2 searched for local business people who had the

experience and the connections to function in environments that were different than their

home country. Once the participants located the “right” business partners, they offered

the potential partners a stake in the new business within the region. P1 discussed that one

should not only select the “right local partner” but should select a partner that “shares the

same vision and purpose.” P1 recalled an event where Company X opened locations in

two different countries at the same time. Both countries had similar economical,

governmental, and environmental conditions. Both locations also had local shareholders

responsible for handling each operation. P1 explained that one location was successful

because Company X had the “right partner” and the other “failed big time” because

Company X did not have a knowledgeable shareholder that shared the same vision. P1

and P2 expressed that forming strategic partnerships with knowledgeable local share

holders can help mitigate risks and identify markets. The participant’s emphasis on

assembling strategic partnerships with knowledgeable shareholders is similar to

Fernhaber and Li’s (2013) study, which illustrated that forming partnerships with foreign

alliances was an effective business strategy that positively impacts new multinational

ventures. By creating joint ventures with knowledgeable shareholders in different

countries, Company X was able to capitalize on opportunities and strengthen the

company’s capacity to manage local deals.

The participants suggested forming strategic partnerships with multinational

business institutions to gain a better understanding of the opportunities and challenges

business leaders encountered before expanding into other countries. As Company X

explored different countries for expansion, the executives of the company formed

alliances with leaders from institutions in other countries to deal with the complexities of

operating in a foreign environment. The initiative to develop these partnerships is

evidenced in Company X’s international business policy, which encourages “strong

relationships” with several international government agencies, finance corporations, and

private investment firms. The bank’s international business policy focuses on building

international relations with some of the world’s top financial institutions. According the

bank’s policy, strategic relationships with international and foreign governmental

agencies help guarantee that the bank “maintains the highest levels of regulatory

compliance.” The banks robust compliance system is in accordance with the highest

international standards and acknowledged by partner institutions. P1 described

experiences where Company X held local meetings with multinational business leaders

from well-known business institutions from other countries. During the meetings, the

executives from Company X and the business leaders from the other multinational

institutions openly shared experiences and visions with one another. Ultimately, the

sharing of international business knowledge resulted in gaining useful information about

governmental regulations, business policies, and underserved sectors in foreign markets.

During the course of forming strategic partnerships with multinational institutions,

P1 developed a rapport with the leaders in these multinational firms. Building a rapport

with high profile executives enabled P1 to gain knowledge from multinational leaders

with first hand experience in international business. P2 counted on the relationships with

legal partners, local shareholders, and influential leaders to gain knowledge on addressing

local ordinances within the region and to assist in conducting business processes. The

concept of knowledge sharing of government regulations, business policies, and

underserved sectors in foreign markets is evident in Paulin and Suneson’s (2015) study

that concluded that knowledge sharing was a significant element in building human

capital and creating relationships between parties. Knowledge sharing occurs between

different individuals and groups for the purpose of communicating knowledge (Paulin &

Suneson, 2015). By developing a rapport and communicating knowledge with leaders in

multinational institutions, Company X learned how to facilitate decision-making

capabilities, establish organizational routines, adapt to change, and improve overall

company performance under different cultural settings.

Correlation to the conceptual framework: Theme 2 correlates to Early and

Ang’s (2003) metacognitive facet of CQ. The participants displayed evidence of

metacognitive CQ by reflecting more on their mental procedures to gain a deeper

understanding of cultural differences. By controlling thought processes and monitoring

progress when conducting international business activities, the participants’ actions align

with the metacognitive facet of CQ. The participants analyzed assumptions and

acclimated mental maps when collaborating and sharing knowledge with foreign business

associates.

The participants displayed evidence of metacognitive CQ through knowledge

sharing. The participants displayed knowledge sharing by developing relationships with

qualified strategic partners. The participants emphasized the importance of sharing

knowledge while maintaining higher levels of cultural awareness. The participants

initiated contacts with knowledgeable and strategic partners that would benefit the

company during an expansion. Their initiative to pursue a greater understanding of local

conditions and potential obstacles and opportunities through the lens of strategic partners

shows evidence of metacognitive CQ in its highest form. In essence, the participants

were mindful of the feelings, thoughts, and actions of their strategic partners and

conformed to their cultural knowledge and local business experiences as they expanded

into foreign territories.

Theme 3: Diversification and Specialization

The third theme that emerged from the data analysis was diversification and

specialization. Both participants asserted that diversification and specification enabled

Company X to be one of the fastest growing banks in the Middle East. P1 and P2

focused on the strategy of diversifying their services and specializing in niche markets to

grow their company through international expansion. Company X’s diversification and

specialization strategy was evident in the company’s profile section of the international

business policy and progress report, which is an overview of the Bank’s accomplishments

and commitment to excellence. According to Company X’s profile, the company

received multiple awards on becoming the Middle East’s fastest growing bank in terms of

treasury management for its unique treasury solutions and services.

Diversification. The participants shared that as Company X is an established

company in the West Bank, the company offered a higher level of service and expertise in

comparison to most of the local competition. Due to poor economic conditions,

Company X faced a dilemma of having the capabilities to expand locally but suffered

limitations for growth due to political clashes. At the time, declining revenues threatened

the survival of the company’s once thriving business. This dilemma was a motivating

factor in Company X’s decision to expand internationally. P1 and P2 recognized that in

order to expand as a company, Company X needed to implement a diversification

strategy.

The participants recognized that there were potential market opportunities in

different countries that needed either different versions of their existing products or

entirely new products. Company X diversified their product line by modifying their

existing products and adding new products to their line. As Company X expanded to

foreign territories, the company developed different products and services that catered

towards different segments in markets that were underserved. P2 discussed how the

company introduced a more modern product to cater to the Israeli market as opposed to

the traditional products the company was accustomed to in their home country. The

modern product consisted of longer-termed car financing, which was not common in the

region. P1 mentioned how the company modified their existing product line to adjust to

Islamic markets that opposed banking products that were interest bearing. P1 shared that

some Muslim regions did not believe in paying interest due to religious beliefs. P1

expressed that product diversification enabled the company to expand to different

countries and target markets that other companies neglected.

The participants developed a thorough understanding of these markets by

conducting feasibility studies that indicated market segments that needed specific

products. P1 highlighted the importance of a market study to gain a better understanding

of the local culture and specific product demand. P2 explained, “We did the market

study. We understood the needs and wants of the customer. We familiarized ourselves

with the new market.” This theme reinforces Merdzanovska’s (2015) findings that MNE’s

use of diversification strategies helps reduce risk and enhance the possibilities for growth.

Company X focused on gaining a thorough understanding of different market segments

and assessing both the opportunity and the risk of introducing new or modified products

to different markets.

Specialization. In addition to diversification, P1 and P2 focused on using their

expertise to cater to a specific niche. P2 referred to an opening of a retail bank in Israel,

which led to the company’s substantial financial growth because the local banks did not

offer the same or similar banking services. P2 shared, “we presented a product that does

not exist in that whole country.” The product that Company X specialized in locally

served as a luxury in foreign markets. This is evident in Company X’s international

business policy, which encouraged the introduction of specific banking services that

catered to specific consumers in different countries. P1 and P2 posited that Company X

not only implemented a diversification strategy to develop new products for different

segments of the market but also introduced their existing products and expertise to

foreign markets. Company X introduced a core banking system that was innovative and

technologically advanced. Their advanced banking platform enabled the company to

enhance their competitive position and provide greater long-termed value for their

customers.

By implementing specialization strategy, Company X provided a product that

targeted multiple customer types. The participant’s strategy of offering their effective

banking services to different countries gave the company a competitive advantage in

growing the firm internationally. This theme reinforces the work of Kaivo-oja,

Vähäsantanen, Karppinen, and Haukioja’s (2017), which emphasizes that specialization

strategy enables companies to focus on their own particular skills and expertise to

maintain a competitive advantage. Company X capitalized on the fact that their existing

product line was unique in different countries. The company used their existing expertise

to assist a wider range of clients. Through specialization strategy, Company X provided a

product and service that many of the people in the targeted region were not familiar with.

This strategy enabled the company to gain tremendous growth while establishing their

credibility in the market.

Correlation to the conceptual framework. CQ was evident in Theme 3,

diversification and specialization. The participants utilized their CQ to diversify their

product line and to cater to a specific niche. Both participants focused on building

international knowledge on countries of interest and developing strategic partnerships to

enhance their CQ. CQ is a combination of skills and attributes that enable a person to

effectively function in different cultural environments (Menon & Narayanan, 2015). By

obtaining a thorough understanding of local norms, beliefs, and regulations, Company X

was able to develop new services and focus their existing services on areas that were

underserved. The participants’ general foundation of CQ enabled them to utilize their

competencies and processes in cross-cultural environments while maintaining a

competitive advantage in different settings.

Applications to Professional Practice

The results from this study may be applicable to business practice in various

ways. Global leaders face the challenge of initiating ways to enhance their competence to

function in foreign settings (Menon & Narayanan, 2015). Many business leaders lack the

knowledge to expand their operations to different countries resulting in negative

outcomes. The purpose of this study was to identify strategies that business leaders use to

grow their companies through international expansion. The findings from this study

indicated that international knowledge and adaption to local conditions, strategic

partnerships, and diversification and specialization play a major role in successfully

growing a firm across borders.

The findings from this research are relevant to improved business practice because

the findings show specific strategies used to expand a firm to different countries while

mitigating risks. International knowledge is the basis for operating effectively in a

foreign country (Fletcher et al., 2013). As executives explore international opportunities,

they can learn about the country by gaining international knowledge and adapting to local

conditions to improve their business practices. Business leaders can improve their

international knowledge by conducting market feasibility studies to learn about foreign

conditions, barriers, market opportunities, and competition. Business executives can also

gain a thorough understanding of the country they wish to expand in by adapting to local

conditions. Business leaders seeking to explore international opportunities can focus on

learning the region’s cultural similarities and differences, government rules and

regulations, and the country’s accessibility.

Further results of the research, including strategic partnerships and diversification

and specialization, are applicable to improved business practice. Forming relationships

with knowledgeable partners can have a positive impact on international ventures

(Fernhaber & Li, 2013). Strategic partnerships are applicable to improved business

practice because it enables business leaders to develop relationships with partners who

have the local knowledge to build and operate local businesses. Business executives can

select partners that understand the local norms, rules, and regulations. Some of these

strategic partnerships can include legal counselors, local shareholders, and multinational

institutions with ties to the local community.

Diversification and specialization strategies play a significant role in enhancing

the possibilities for international growth and maintaining a competitive advantage

(Kaivo-oja et al., 2017). Diversification and specialization are applicable to business

practice because it enables business leaders to diversify their products and specialize in

specific niches when entering a new international market. Executives can utilize their

feasibility studies to identify different segments in the market. Once the business leaders

identify attractive market segments, they can diversify their product selection or

specialize in a specific product to satisfy target market needs and wants.

Implications for Social Change

The strategies identified in this research have been successful for leaders of an

MNE in the West Bank in Palestine. Although the Palestinian economy functions below

its potential due to continuous political conflict, the West Bank has shown signs of

economic growth (Sabella et al., 2014). Birt et al. (2016) posited that if the purpose of a

study is to contribute knowledge to enact social change, there is an ethical responsibility

to explore different interpretations so that others can decide on the transferability of the

results. Understanding business strategies used by experienced multinational executives

can enhance the probability of successfully expanding a company across borders. These

strategies can assist future leaders seeking business opportunities in countries that are in

dire need of employment opportunities and better living standards. The use of these

strategies may also effect social change by promoting MNE growth within the West

Bank, which can lead to a higher employment rate and enhanced living situations for

local residents. The tax revenues generated from these companies can be used for

improvements in the country’s infrastructure and the enhancement of government

services.

Recommendations for Action

In alignment with the conceptual framework of cultural intelligence, the findings

of this study can serve as a platform for business leaders seeking to grow their companies

through international expansion. The strategies mentioned in the research findings came

from experienced multinational executives. The results of this study could enable MNEs

to benefit from the knowledge and the experiences of the participants and help mitigate

the risks associated with a global expansion. Business leaders that lack international

business experience could benefit from the knowledge that developed from this study

before entering a foreign market.

An enhanced global platform can enable MNEs to develop internationalization

strategies that are suitable for different foreign markets (Bondy & Starkey, 2014). The

first recommendation is for business leaders to focus on gaining international knowledge

and adapting to local conditions. By gaining international knowledge and adapting to

local conditions, executives will have a thorough understanding of potential obstacles and

opportunities before expanding into a foreign market. This strategy can enable leaders to

understand cultural similarities and differences, local government regulations,

competition, and accessibility. Executives that have the appropriate international

knowledge could gain a competitive advantage and maintain sustainable growth (Fletcher

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et al., 2013). Leaders seeking to expand operations internationally should adjust to local

conditions, including different cultural norms and government regulations. Adjusting to

local conditions could enable business leaders to better understand foreign markets and

their government regulations.

A second recommendation is to develop strategic partnerships when venturing

into new foreign markets. Business executives can focus on building relationships with

individuals that are trustworthy and familiar with local business processes. Some

strategic partnerships may include legal councilors, local shareholders, and influential

multinational institutions within the region. Executives can partner with individuals that

have the legal experience to manage government regulations, share the same corporate

vision, and can assist in recognizing local opportunities and risks. Finding the

appropriate strategic partners can assist leaders in mediating barriers and developing ties

within the local communities during an international expansion.

A third recommendation is for executives to diversify their product selection and

to specialize in an underserved niche market to promote growth. Implementing a

diversification strategy can enable leaders to develop different products for different

market opportunities in foreign regions. Through specialization strategy, an executive

can focus on their existing product, services, and expertise and use it to target specific

markets. Utilizing these strategies can encourage MNEs to offer valuable products

outside their home country potentially leading to significant international growth.

The final recommendation is for business leaders to enhance their cultural

intelligence. Executives with CQ function better in multicultural environments than

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those who lack CQ (Menon & Narayanan, 2015). Evidence of CQ was found in the

results of this study. The executives under study portrayed signs of cognitive and

metacognitive CQ as they explored opportunities in foreign countries. As business

leaders grow their companies through international expansion, they can learn the

similarities and dissimilarities of cultural differences in multicultural settings. Executives

can immerse themselves in the local norms of the community to gain a thorough

understanding of the cultural structures. A business leader with CQ has the competency

to cope with potential cross-cultural challenges that emerge during international

expansions. Business leaders with CQ are able to recognize and overcome the

complexities of intercultural differences in a foreign work environment. A business

leader with CQ can control and leverage multicultural encounters for positive outcomes

and can function effectively across borders. MNEs and business leaders seeking to

expand their operations across borders can benefit from the aforementioned results and

recommendations.

MNEs or corporations seeking to expand abroad for the first time could

incorporate the results from this study into international business seminars or training

programs. The seminars may include content pertaining to the general cultural norms,

business practices, and government regulations in the country of interest. Companies

could also offer training programs that encourage cross-border interactions enabling

employees to build CQ and develop potential strategic partnerships. Both options guided

by the results from this study can help create multicultural awareness and enhance the

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international knowledge of business leaders. These initiatives could potentially result in

an organization that is better equipped to grow the company through international

expansion.

Recommendations for Further Research

Executives should have the business strategies and competency to successfully

expand their companies through international expansion. The results of this study

involved the in-depth perspectives of a few business leaders from one multinational firm

in a particular developing country. Given the concept that the findings from a limited

demographic can assist executives in growing their firms internationally, it makes sense

to further the research through the perspectives of other international business leaders

from different countries. MNEs use internationalization strategies to deal with the

uncertainties and complexities of functioning in foreign business environments

(Bouyoucef & Chung, 2015). Future researchers should explore internationalization

strategies through the lens of business leaders from other developing or developed

countries with different populations. Multiple factors from different countries can

influence a firm’s effectiveness in operating abroad (Amal et al., 2013). Further research

should address international business strategies used in different industries and firm sizes.

Another recommendation for further research is to conduct a quantitative study to analyze

numerical comparisons of business strategies used to grow a company through

international expansion. Future research can lead to the improved practice of

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international business by exploring different demographics, industries, firm sizes, and

using mathematical measurements and calculations through quantitative analysis.

The limitations identified in this study can be addressed in further research. A

method in which to assure that future participants are providing truthful responses is by

developing a good rapport with the participants. By developing a good rapport, the

researcher can establish a comfortable environment to interview future participants,

encouraging rich and truthful responses. In addressing the second limitation, future

researchers can ask additional probing questions that can assist future participants in

recalling their experiences accurately during the interviews. The third limitation can be

addressed in further research by acquiring accurate company records from the executives

of well-established multinational firms. The final limitation can be addressed in future

research by exploring international business strategies through the perspectives of

business leaders from other populations. Interviewing different participants from other

demographics will allow future researchers to determine whether or not the findings from

this study are applicable to other populations.

Reflections

My experience during the DBA doctoral study process was challenging yet

rewarding. Through qualitative research, I was able to communicate and gain valuable

knowledge from top executives of a multinational firm. The lessons learned from this

study enabled me to validate and question my own international business practices.

Although I am an entrepreneur with international business experience, I had the

opportunity to play the role of a researcher, exploring the perspectives of multinational

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business leaders from another organization. Due to my own experiences in international

business, I was well aware that certain biases existed. To mitigate bias I maintained a

high level of openness to differences in perspectives and opinions. I viewed the findings

from the perspectives of the participants and maintained a neutral position during the

research process.

During the interviews, I discovered that the participants possessed a high level of

confidence and ambition while discussing their experiences in international business.

The participants welcomed the interviews and seemed eager to share their knowledge and

experiences. After the interviews, the participants expressed their gratitude for allowing

them to be a part of this study. The participants appeared to have had a pleasant

experience during the interviews and displayed a sense of satisfaction in being able to

contribute their knowledge to the subject.

All of the themes that emerged from the study were consistent with my own views

with the exception of the theme on strategic partnerships. As an international business

practitioner, I have experienced negative outcomes that derived from selecting partners

that did not have the appropriate knowledge or experience. The findings from the study

enabled me to change my thinking. The participants highly recommended partnering

with individuals that have international business knowledge and expertise in order grow a

company through international expansion. After interviewing the participants, I am more

inclined to consider selecting strategic partners so long as the potential partners have

appropriate knowledge, experience, and shared vision.

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Conclusion

As global business opportunities continue to develop, leaders require strategies to

grow their companies through international expansion. Internationalization strategies are

complex and determined by different variables that can either encourage or discourage

multinational involvement (Heiss, 2017). Leaders must have the appropriate resources

and capabilities to successfully guide their firms through the internationalization process

(Brush et al., 2015). Two participants offered their extensive experience in international

business practices. The secondary data included progress reports and international

business policies, which helped explain how the company grew through international

expansion. Three themes emerged from the study: (a) international knowledge and

adaption to local conditions, (b) strategic partnerships, and (c) diversification and

specialization.

The results from the findings helped me confirm that international business

strategies guided by the conceptual framework of CQ can assist leaders seeking to expand

their companies across borders. Executives should consider enhancing their international

knowledge while adapting to local conditions, develop strategic partnerships with

knowledgeable and experienced individuals, and consider diversification and

specialization as they introduce their products, and focus on adjusting to multinational

markets. The strategies used by the participants from Company X can serve as a

guideline for motivated leaders seeking to explore opportunities in countries other than

their home country.

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