Abstract
We investigate the role of organizational creativity as a microfoundation underlying international business competence (IBC) and its impact on international performance in small- and medium-sized enterprises (SMEs). Based on recent studies emphasizing the importance of creativity as an antecedent of valuable capabilities, we develop a model showing how organizational creativity manifests itself in diverse nuances in the connection between individual and organizational levels. We test our model with data from SMEs using established scales for organizational creativity and IBC. Our results demonstrate the role of organizational creativity as a nuanced, significant driver for developing IBC and that fostering a creative organizational environment that facilitates transforming individual creativity into an organizational resource leads to superior international performance.
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