A configurational view of the role of managerial cognition and Industry 4.0 in SME internationalization

Our study seeks to supplement the Uppsala model of internationalization by incorporating two underexplored dimensions, namely, the transformative effects of macroenvironmental shifts driven by Industry 4.0 (I4.0) technologies and the theoretical insights provided by the microfoundation approach, which focuses on how managers perceive, process, and respond to external stimuli on the basis of their cognition. This research employs a dual network capability framework through the exploration–exploitation lens to investigate how managerial cognition and I4.0 technologies influence internationalization. A fuzzy-set qualitative comparative analysis (fsQCA) is applied to data collected from a sample of 116 small and medium-sized enterprises (SMEs) from a developed country. This study reveals that decision-making strategies associated with higher and lower levels of internationalization are distinct from each other. These findings suggest that the interplay between managerial cognition, network capabilities, and I4.0 technologies plays a significant role in shaping internationalization outcomes. This research contributes to the internationalization literature by addressing critical gaps in the Uppsala model, particularly through the integration of cognitive and technological factors. This study offers new insights into the decision-making processes underpinning internationalization, advancing both the Uppsala model and the broader field of strategic management.