Managerial competencies for multinational businesses

Managerial Competencies
for Multinational
Businesses
Macarena López-Fernández
University of Cádiz, Spain
Pedro M. Romero-Fernández
University of Cádiz, Spain

A volume in the Advances in Human Resources
Management and Organizational Development
(AHRMOD) Book Series


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Library of Congress Cataloging-in-Publication Data
Names: Lopez-Fernandez, Macarena, 1980- editor. | Romero-Fernandez, Pedro M.,
1956- editor.

Title: Managerial competencies for multinational businesses / Macarena
Lopez-Fernandez and Pedro M. Romero-Fernandez, editors.
Description: Hershey, PA : Business Science Reference, [2018]
Identifiers: LCCN 2017054599| ISBN 9781522557814 (hardcover) | ISBN
9781522557821 (ebook)
Subjects: LCSH: Multinational work teams. | Communication in management. |
Management--Psychological aspects.
Classification: LCC HD66.5 .M36 2018 | DDC 658/.049--dc23 LC record available at />This book is published in the IGI Global book series Advances in Human Resources Management and Organizational Development (AHRMOD) (ISSN: 2327-3372; eISSN: 2327-3380)

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Editorial Advisory Board
Jesús Barrena-Martinez, University of Cádiz, Spain
Mar Bornay-Barrachina, Pablo de Olavide University, Spain
Jesús de Frutos-Belizón, University of Cádiz, Spain
Juan Pablo Dianez-Gonzalez, University of Cádiz, Spain
Rosalía Diaz-Carrion, University of Cádiz, Spain
Noelia Franco-Leal, University of Cádiz, Spain
Susana Fernández-Pérez de la Lastra, University of Cádiz, Spain
Paloma Gallurt, Pablo de Olavide University, Spain
Félix Guerrero-Alba, University of Cádiz, Spain
Jaime Guerrero-Villegas, Pablo de Olavide University, Spain
Susana Pasamar, Pablo de Olavide University, Spain
Marta Ruiz-Martínez, University of Cádiz, Spain




Table of Contents

Preface................................................................................................................................................... xv
Section 1
Introduction
Chapter 1
Introduction to the International Managerial Competences.................................................................... 1

Rosalia Diaz-Carrion, University of Cadiz, Spain
Macarena López-Fernández, University of Cadiz, Spain
Pedro M. Romero-Fernandez, University of Cadiz, Spain
Section 2
Intrapersonal Competences
Chapter 2
From Emotional Intelligence to Emotional Competences in Management........................................... 21
Jesus Barrena-Martinez, University of Cadiz, Spain
Chapter 3
Managing Stress in an International Career........................................................................................... 44
Susana Pasamar, Pablo de Olavide University, Spain
Paloma Gallurt, Pablo de Olavide University, Spain
Chapter 4
Decision Making: International Managerial Skills................................................................................ 64
Alvaro López-Cabrales, Pablo de Olavide University, Spain
Mar Bornay-Barrachina, Pablo de Olavide University, Spain
Section 3
Interpersonal Competences
Chapter 5
International Management Success: Communication as an Essential Skill.......................................... 83
Jesús de Frutos-Belizón, University of Cadiz, Spain
Susana Fernández Pérez de la Lastra, University of Cadiz, Spain
Marta Ruiz-Martínez, University of Cadiz, Spain






Chapter 6

A Practical Approach to Managing Multinational Teams................................................................... 108
Natalia García-Carbonell, University of Cádiz, Spain
Chapter 7
International Meeting Management..................................................................................................... 126
Diego Asencio, Airbus, Spain
Chapter 8
Managing and Shaping Change in International Projects.................................................................... 150
Jürgen Janssens, asUgo Consulting, Belgium
Chapter 9
International Human Resource Management: How Should Employees Be Managed in an
International Context?.......................................................................................................................... 174
Mar Bornay-Barrachina, Pablo de Olavide University, Spain
Section 4
Strategic Competences
Chapter 10
The Relevance of Stakeholders in an International Context................................................................ 196
Jaime Guerrero-Villegas, Pablo de Olavide University, Spain
Chapter 11
Corporate Social Responsibility as an International Strategy............................................................. 215
Cristina Márquez-Moreno, University of Cádiz, Spain
Jose Luis Durán-Valenzuela, University of Cádiz, Spain
Chapter 12
Understanding Industrial Relations in a Comparative Context............................................................ 236
Jonathan Lavelle, University of Limerick, Ireland
Chapter 13
The International Manager: Innovation as a Competitive Advantage................................................. 257
Ángel Jareño, Biguntek, Spain
Juan José Gibaja, University of Deusto, Spain
Amaia Arizkuren, University of Deusto, Spain
Chapter 14

Networking: Creating and Maintaining Networks in Business Management...................................... 275
Mª del Carmen De la Calle-Durán, Rey Juan Carlos University, Spain




Chapter 15
Strategic Competences in International Business................................................................................ 303
Noelia Franco-Leal, University of Cádiz, Spain
Juan Pablo Dianez-Gonzalez, University of Cádiz, Spain
Chapter 16
Managerial Competences for the Future: Graduates and Postgraduate Students................................ 318
Edgar Oliver Oliver Cardoso Espinosa, Instituto Politécnico Nacional, Mexico
Mayra Alejandra Vargas Londoño, Instituto Politécnico Nacional, Mexico
Compilation of References................................................................................................................ 332
About the Contributors..................................................................................................................... 357
Index.................................................................................................................................................... 362


Detailed Table of Contents

Preface................................................................................................................................................... xv
Section 1
Introduction
Chapter 1
Introduction to the International Managerial Competences.................................................................... 1
Rosalia Diaz-Carrion, University of Cadiz, Spain
Macarena López-Fernández, University of Cadiz, Spain
Pedro M. Romero-Fernandez, University of Cadiz, Spain
Considering that markets today are characterized by high levels of competition and dynamism, the

managerial function is becoming increasingly complex. Managers need to develop a series of skills to be
able to respond to these changes in the environment. These competences must cover a broad spectrum:
(1) at the strategic level, analyzing opportunities, threats, and the strengths and weaknesses of the
organization in order to ensure its survival; (2) at the group or collective level, managing people who
work inside and outside the company, and (3) individually, the manager must be in control of him/herself
before being able to manage those in his/her charge. Thus, proactivity, creativity, team management, and
stress or time management are just some of those skills that managers should not ignore. This chapter
focuses on analyzing the competences that managers must develop in order to be successful in both
domestic and international markets.
Section 2
Intrapersonal Competences
Chapter 2
From Emotional Intelligence to Emotional Competences in Management........................................... 21
Jesus Barrena-Martinez, University of Cadiz, Spain
Emotions can affect the daily behavior and decisions of managers. In an international environment where
the context, culture, and values can be very different among individuals, it is important to understand
and interpret the different kinds of emotions. Contributions from human behavioral sciences have shed
light on the extent to which the control of emotions by companies and managers is crucial to extract
the best individual and collective results. This chapter examines the management of emotions from an
international perspective. Specifically, the chapter analyzes the concept of emotion, its dimensions, the






basic theories and framework of emotions, the use of emotional intelligence, and how its evolution has
led to the development of emotional competences for managers. Finally, the chapter presents a case
study, in order to discuss traditional management and the consideration of emotions as a new practical
and valuable paradigm in management.

Chapter 3
Managing Stress in an International Career........................................................................................... 44
Susana Pasamar, Pablo de Olavide University, Spain
Paloma Gallurt, Pablo de Olavide University, Spain
Over the last few decades, companies capture talent from all over the world to increase their competitiveness.
However, it is in these displacement processes that the true nature of the talent is put to the test. Why?
Previous research showed how an increase in the levels of stress generated by an international assignment
could have several negative outcomes for employees and, consequently, for companies. Therefore, it
is critical that managers understand the need to manage these assignments well, and to try to alleviate
all the tension that an international work assignment could generate. In addition, it must be considered
that not only do employees become stressed in these new situations, but managers may also suffer from
anxiety when they have to meet deadlines and make quick and often complex decisions. This chapter
reviews these issues, providing a definition of stress and discussing the main stressors that may affect
managers and employees on an international assignment. This chapter also proposes some resources
and strategies for managing stress.
Chapter 4
Decision Making: International Managerial Skills................................................................................ 64
Alvaro López-Cabrales, Pablo de Olavide University, Spain
Mar Bornay-Barrachina, Pablo de Olavide University, Spain
Decisions are choices. Decision making is the essence of management. Managers make decisions every
day and the practical implications of such decisions are key to the success of the company. After reading
this chapter, managers, or those who are preparing to be managers, should be better able to do the
following: (1) understand the extent to which such organizational characteristics as structure or technology
affect decision making, (2) see why the complexity of task environments determines the decisions being
made by managers, (3) define and manage certain strategic organizational capabilities such as learning
or absorptive capacity, (4) think about cognitive and non-cognitive human capital characteristics that
play a role in decision making, and (5) be aware of the impact of culture on decision-making processes.
Understanding these aspects will help you develop a deeper understanding of the role and importance
of decision making, not only in the domestic market but also internationally.
Section 3

Interpersonal Competences
Chapter 5
International Management Success: Communication as an Essential Skill.......................................... 83
Jesús de Frutos-Belizón, University of Cadiz, Spain
Susana Fernández Pérez de la Lastra, University of Cadiz, Spain
Marta Ruiz-Martínez, University of Cadiz, Spain




International communication has become of paramount importance in the business environment, because
of the increasing effects and influences of globalization. This chapter intends to explain the importance
of communication, in terms of the processes involved, as well as the elements that contribute to effective
communication. The purpose is to eliminate “noises” that can distort the intended message. Therefore,
throughout the chapter, different forms of communication (written and oral) are identified, which can be
applied in different situations, cultures, and contexts. In order to achieve effective written communication,
a series of key criteria and suggestions are put forward. Specifically, techniques used in writing texts
are examined, with an in-depth focus on the report, since this is the text type used most commonly by
managers. On the other hand, focusing on the oral communication form, the factors necessary to establish
effective oral communication are identified, considering certain particularities if this communication is
carried out at an international level.
Chapter 6
A Practical Approach to Managing Multinational Teams................................................................... 108
Natalia García-Carbonell, University of Cádiz, Spain
In current organizations, managing teams is becoming more important and complex, due to the critical,
practical, and strategic implications of doing so. Team composition has dramatically changed in companies,
capturing new social and demographic tendencies, and making teams more diverse and multicultural. In
this context, organizations should pay particular attention not only to teams and their functioning, but also
to team managers and how they effectively implement practices to guide teams towards company goals.
Chapter 7

International Meeting Management..................................................................................................... 126
Diego Asencio, Airbus, Spain
Meetings are considered by many people to be a waste of time. However, many experts suggest that this
is because they are not planned or organized effectively, and that, in fact, meetings can be an essential
tool for the dissemination of objectives, values, culture, and other important information throughout
the organization. The key is to be able to manage meetings so that they generate the maximum possible
benefit. Therefore, the present chapter is presented, with the main purpose of understanding how a
meeting should be managed. With this in mind, it is essential to understand the most and least common
types of meeting, the roles that each participant can adopt and, among other aspects, the appropriate
structure of a meeting. But, above all, this chapter offers some essential advice for meetings which take
place at the international level.
Chapter 8
Managing and Shaping Change in International Projects.................................................................... 150
Jürgen Janssens, asUgo Consulting, Belgium
Companies are either international by nature, either their workforce is, or business dynamics and agile
optimization create an extended web making it international. This obliges managers to gear up for the
needs of this evolving DNA. This is especially the case in strategy critical project portfolio contexts
focusing on organizational change, process transformation, or roll-out of headquarter-driven products/
services. This chapter will address the required hard and soft assets: integrating the cultural essence
and maturity of the ecosystem, combining experience with a pragmatic approach, and being dedicated
to continuous shaping of collaborations. Additional focus will be set on managing in the digital age. To




give more depth to the tangible value, different real-life cases will be integrated. Together, the theoretical
insights and the empirical examples will offer a big picture view that will benefit the management of
hybrid portfolios in geographically blended environments.
Chapter 9
International Human Resource Management: How Should Employees Be Managed in an

International Context?.......................................................................................................................... 174
Mar Bornay-Barrachina, Pablo de Olavide University, Spain
Nowadays, internationalization is key for the survival of firms. Internationalization of a firm involves
an internationalization of all the functional areas of the firm, of which international human resource
management (IHRM) is one of the most relevant. In an international context, managers should make
decisions about what human resource practices are best suited to the firm’s international operations.
Being aware of the differences between domestic and international human resource management will
help readers and managers to establish operational mechanisms to deal with country differences in terms
of industrial labor, culture, and firm practices. Therefore, after reading this chapter, readers should be
able to deal with aspects like adaptation or standardization of HR practices, international staffing, and
relevant issues around expatriation and repatriation.
Section 4
Strategic Competences
Chapter 10
The Relevance of Stakeholders in an International Context................................................................ 196
Jaime Guerrero-Villegas, Pablo de Olavide University, Spain
The study of the stakeholders is key to a firm’s survival and success. This chapter serves as a point of
reference for managers by providing a better understanding of stakeholder theory and of the different
groups of stakeholders. Additionally, the chapter analyzes the international scenario characterized by
globalization and a high level of competitiveness in order to understand the role played by specific
stakeholders such as shareholders, employees, governments, and non-governmental organizations. After
reading this chapter, readers should be able to understand the basic principles of stakeholder theory; to
identify the different groups of stakeholders, analyzing the role that they play in the firm; to understand
the motives which push firms to operate internationally and the different methods that they can use to
carry this out; and to reflect on the key stakeholders in an international context.
Chapter 11
Corporate Social Responsibility as an International Strategy............................................................. 215
Cristina Márquez-Moreno, University of Cádiz, Spain
Jose Luis Durán-Valenzuela, University of Cádiz, Spain
The objective of this chapter is to understand how important it is for companies, in a globalized environment

such as the current one, to develop socially responsible behavior, particularly for those companies that
want to project themselves internationally. As will be seen, this means that firms assume responsibility
for the impacts of their activities on society and establish improvement processes in three main areas:
economic, social, and environmental. As a result, corporate social responsibility (CSR) has emerged as




a priority for business leaders in all countries. Therefore, this chapter analyzes the current environment
in which companies make their decisions and how the environmental pressures determine the need to
act responsibly. In addition, the concept of CSR is explored and the necessary tools for its effective
implementation are explained. Of course, stakeholder theory is introduced as the core of CSR.
Chapter 12
Understanding Industrial Relations in a Comparative Context............................................................ 236
Jonathan Lavelle, University of Limerick, Ireland
This chapter focuses on the industrial relations (IR) challenges that organizations face when they
internationalize and locate in a foreign country. The purpose of the chapter is to outline the key IR issues
of concern for international organizations and to provide a brief profile of these issues across a select
number of countries. International organizations are faced with a whole range of IR challenges in relation
to trade unions and collective bargaining and these challenges vary across countries. Understanding the
nature of these challenges and how they may differ across countries is hugely important for international
organizations as they look to successful invest in a foreign country.
Chapter 13
The International Manager: Innovation as a Competitive Advantage................................................. 257
Ángel Jareño, Biguntek, Spain
Juan José Gibaja, University of Deusto, Spain
Amaia Arizkuren, University of Deusto, Spain
Nowadays, it is practically impossible to read a business article that does not mention the importance of
creativity and innovation for the development and survival of different organizations. One way companies
can respond to the uncertainty created by the domestic and global economic situation, rapid growth of

the information technologies, and ever more informed and demanding customers is through innovation.
It is also important to understand that innovation is not the exclusive property of R&D departments or
industrial companies. All innovation starts with an idea and, given that ideas come from people, encouraging
innovative work behavior (IWB) has become a priority as a way to achieve business competitiveness.
Chapter 14
Networking: Creating and Maintaining Networks in Business Management...................................... 275
Mª del Carmen De la Calle-Durán, Rey Juan Carlos University, Spain
Within an ever-changing and dynamic setting, managers need to develop new skills to enable them
to swiftly respond to changes in the environment. One of the skills required of twenty-first century
managers and entrepreneurs is the ability to create and maintain contact networks. Nevertheless,
networking is not achieved simply by knowing its key techniques. It requires time, effort, and a great
deal of practice. Accordingly, following an analysis of the concept of networking and its different types,
this chapter addresses the key aspects for creating and upholding them: the principles of networking, its
main obstacles, and the techniques used to facilitate it, such as social networks, visibility and exposure
events, and mentoring. A further contribution involves the planning of networking to ensure its specific
goals are met. Good network planning will ensure the more efficient achievement of networking skills,
experiences, and resources.




Chapter 15
Strategic Competences in International Business................................................................................ 303
Noelia Franco-Leal, University of Cádiz, Spain
Juan Pablo Dianez-Gonzalez, University of Cádiz, Spain
The exhibition of a series of strategic competences by managers has been frequently noted as crucial for
the success of firms. In the international context, the role of such strategic competences could be even
more relevant as a result of both the changing and turbulent nature of the contexts in which firms carry out
their activities and the complexity associated with the management of firms that are located in different
countries. Specifically, the following six strategic competences are analyzed: business overview, customer

orientation, networking, interfunctional orientation, effective resource management, and negotiation.
Additionally, a set of practical implications is offered in the conclusion section.
Chapter 16
Managerial Competences for the Future: Graduates and Postgraduate Students................................ 318
Edgar Oliver Oliver Cardoso Espinosa, Instituto Politécnico Nacional, Mexico
Mayra Alejandra Vargas Londoño, Instituto Politécnico Nacional, Mexico
The objective of this chapter is to diagnose the managerial competences developed by postgraduate
students which are necessary to adequately carry out the management function in the future. To do this,
a quantitative study with an exploratory-descriptive scope was carried out on a sample of postgraduate
students specializing in finance. Specifically, the sample for the study consisted of 65 graduates in
which the distribution with respect to gender was 55% women and the remaining 45% men. The main
results were that graduates demonstrate undeveloped competences in areas such as e-business, change
management, social responsibility, ethical management, and project management. The competences
which were overdeveloped were financial planning, management of information and communication
technologies, and internal auditing. Gender, age, and work experience were considered as variables in
the study, for which significant differences were obtained.
Compilation of References................................................................................................................ 332
About the Contributors..................................................................................................................... 357
Index.................................................................................................................................................... 362


xv

Preface

OVERVIEW
That Business Management constitutes a profession is, at present, a widely accepted idea. The figure of
the manager is crucial for society, due, mainly, to the essential role played by managers in generating
wealth, employment and economic growth. This book is intended for those people who are in charge of
the daily decisions of a company, occupying one of the most important positions within the organization,

and also for those who aspire to be in such a position in the near future.
It has always been said that this role cannot be filled by anyone. Managers are people who have special
abilities. They are prepared to bear an enormous responsibility and, above all, to be held accountable for
their decisions and actions, both the good and the bad. We are not talking about any position, but one
where the slightest mistake can cost millions of euros or damage the company’s chances of survival.
Thus, the differential elements, the leadership style and the skills that the person managing a company
must possess are becoming increasingly necessary and are accentuated more every day.
Life is more complex today, more stressful and demanding. Society has progressed from the industrial
era to the information age, and today’s challenges are of a magnitude which was unknown and unimaginable only two decades ago. There is a growing interaction between companies and countries, with a
constant flow of trade, capital and work. At the same time, we are seeing the rapid emergence of other
countries with sufficient potential to join the globalization process and whose economies are growing at
such high rates that they surpass even the most developed countries in leadership. This is an environment
that is sometimes difficult to assimilate and that top management must face and strive to succeed in.
To respond to this context, managers are trained. They acquire certain knowledge and techniques and
develop attitudes that help them to display their capacity for planning, organization, giving direction,
and control –principal management functions–; key aspects to manage an organized company and adjust
as much as possible to this process of adaptation to the developing globalized market. In addition, they
learn to be flexible and open-minded. They are people who must always be willing to change and ready
to take advantage of new opportunities as they arise.
However, it is becoming increasingly apparent that, in order to successfully start and lead an organization, that is to be a manager in practice, knowledge is necessary, but it is not enough. To this
knowledge, a series of leadership and management skills must be added. The time in which there was
an ongoing debate over whether the manager is born or made with these skills has passed. It seems that
the controversy abated after the conviction that, indeed, a manager “was born and was done”. As happens with other professional activities, being a manager requires a minimum genetic endowment, which
must then be extended through both intellectual learning and professional development, day to day, to
reach a suitable level of competence.



Preface

Similarly, it seems that the time in which authors tried to discover and describe what qualities define
an effective and efficient executive has passed. In this period, dozens of studies emerged offering a list
of characteristics and qualities that would be necessary to develop an “effective management practice”
applied to business management. In such a changing and competitive world, being proactive and decisive,
having confidence in yourself and your collaborators, or having the ability to adjust the organizational
values ​​to those of the members of the organization, were put forward as some of those essential features
for people who would occupy a management position. Little by little, we became convinced that it was
not a question of excelling in a quality, or a set of skills, but rather it was about having a clear and detailed knowledge of oneself – both virtues and defects – and know how to adapt these qualities to each
specific situation. However, what is important not to forget is that the manager is decisive both for the
survival of the company and its development and successful expansion.
It is this last consideration which has led to the writing of this book. There are many splendid manuals
on the market that deal with international management, talking about the process, legislation, business
policies and even cases of success and failure. The main purpose of these studies is to offer all those
professionals who intend to become involved at the international level theoretical models and management mechanisms which will help them achieve success. It is therefore necessary to ask ourselves what
the reason is for entering into this present project. The main answer to this question is based on the fact
that, as previously mentioned, theoretical knowledge must be added to something else, a set of skills
that will allow us to successfully complete, in this case, business expansion. It is not about memorizing
concepts, but about starting in international business, knowing what competencies need to be developed.
The objective of this book is not to offer a detailed list of the qualities (personal, interpersonal and
strategic) that people must possess if they want to expand internationally, but to offer some guidelines
that, at least, must be understood and followed by those professionals who are considering the conquest
of new markets.
As is widely known, one of the most effective ways for an organization to increase its income is
through export. In general, companies that expand abroad produce better financial results than those
focused exclusively on local markets. Every great manager longs to see the business grow until it becomes a great company with a global reach. Despite this, statistics indicate that few companies open
their borders. Why does this happen? Fear? Uncertainty?
You may be asking yourself, “How should I improve and develop myself in a personal way to expand
my business activity to other frontiers?” “What is the best way to achieve communication with diverse
audiences abroad?” “How should I promote the creativity of my company to promote internationalization?”
“What considerations should I bear in mind if I go to a meeting outside of Spain or if I organize it with

people from other cultures?” Or, “What is the best way to develop social responsibility in the different
countries in which I will carry out my commercial activity?” Then this is your manual, as these are some
of the issues that will be addressed. The unknown always causes fear, but that fear can be minimized.
How can we avoid being paralyzed? By understanding that knowledge (information) breeds confidence.
Knowing what you may face, how you should behave, and what situations you may find yourself in, will
make you better prepared and more able to deal with new situations. Specifically, our endeavor has been
to offer the reader guidelines that reduce uncertainty and provide the necessary information to develop
and strengthen the essential skills to achieve success in international management.

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Thus, with this book, the authors intend to go beyond the simple transmission of business knowledge
in a theoretical way. Our idea is to provide examples and answer questions posed by entrepreneurs and
managers seeking to expand internationally, and thus encourage certain attitudes necessary to meet the
new challenges posed.
We do not claim to offer all the answers, because we do not have all the questions either. Rather, the
various authors of this work offer, in a bright and entertaining way and based on their knowledge and
experience, some reflections on fundamental elements of communication, considerations for decision
making, particularities in project management, approaches and techniques for managing stress, advice
on managing meetings, and even guidelines on how to know oneself better and how to manage emotions
in order to enhance the reputation and personal and professional brand. All of this is addressed from the
international point of view.
This book responds to the challenge of “training” in a competitive international business context,
where knowledge in itself is not sufficient without the appropriate know-how and interpersonal skills.
The book can thus be considered to respond to a real current need, giving it an innovative character. We
are sure that, in addition to learning useful knowledge, future business leaders will benefit from the development of certain attitudes which will act as a filter in their way of thinking, interpreting and acting,
when facing the process of internationalization. The diversity of authors who have participated in the

development of this book should also be highlighted, since their range of knowledge and experience (as
academics and managers) enriches these chapters with a variety of ideas and points of view, difficult to
locate in books by a single author.
Each skill is discussed in an independent chapter that consists of theoretical knowledge complemented
with numerous practical examples, guidelines and opportunities for reflection for international managers.
The book consists of 16 chapters organized into three sections that based on the contribution of Cardona
and Chinchilla, should be understood in depth by a manager in order to effectively carry out his/her
task in a particular organization, in our case, before managing the process of international expansion.
This classification was chosen at the discretion of the authors, considering that it is a structure that
allows us to visualize three clear lines of domain that are required if the business activity is developed
in a local market, but even more so, if the organization expands internationally:
•

•

Strategic: The changing and constantly evolving environment that surrounds the company inevitably means that managers are required, above all, to achieve an optimal integration of the company with its socio-economic environment. Darwin said “It is not the strongest of the species that
survives, nor is it the most intelligent. It is the one that is most adaptable to change”. Achieving
“continuous adaptation” is something that every CEO must aim for, even more so if the goal is
to control the international market. Having a business vision, a clear orientation to stakeholders,
knowing how to establish a network of relationships, negotiate and, among other tasks, manage
resources that will generally be scarce, are some of the functions that, in this competitive context,
the executive will have to develop.
Interpersonal: “Great managers surround themselves with great people”. The most important
part of a company is its human component (internal and external to the organization). A manager
will not get anywhere alone, or at least, will not be able to reach as far as it is possible to do in good
company. Businesses find themselves with numerous situations, such as, for example, having to

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obtain concrete economic results in a certain period of time. Without a team of people in charge
of making those results possible, the manager cannot fulfill his/her mission. Knowing how to relate to different interest groups, understanding their needs and their motivations, is another of the
added challenges involved in managerial work, and all of this is seasoned with a need for effective
communication so that all members of the team row in the same direction.
Intrapersonal or Personal Efficiency: First things first: It is impossible to manage anyone if you
cannot manage yourself. If the manager is not well (and does not realize it), it is almost impossible
to make the people around him/her feel good. It is not about changing oneself; it is about working
to improve the way one behaves and performs. In other words, it is about developing self-control,
self-confidence, initiative, ability to influence others, etc. As Peter Drucker says “Success in the
knowledge economy reaches those who know themselves; their strengths, their values and how
they perform better”. We could also add the need to be aware of our own limitations, in order to
overcome or mitigate them.

Consequently, the chapters have been organized into three sections, bearing the aforementioned
headings.
Our intention is that this book cover all of the key questions related to managerial skills that may be
asked by a person who wants to expand his/her company or related businesses at the international level.
Every care has been taken to avoid the overlaps or omissions which may result from the involvement of
several authors. In this sense, the chapters of this book are organized as follows:
In the section on personal efficiency, particular aspects are presented that, before and during the
internationalization process, at an individual or personal level, all professionals must be able to manage.
•

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xviii

Emotions: Bearing in mind that humans are fundamentally emotional beings, we could not ignore the fact that emotions provide us with information about how we relate to ourselves and our
environment. This is what the author discusses in this chapter. The feelings experienced by the
manager (fear, nervousness, enthusiasm, etc.) influence their behavior (positive and/or negative),
so much so that sometimes these emotions may be transferred to other people. Who has never said
“Do not get started (with me about that)”. Managing these emotions is presented as a vital factor
in performance and competitiveness. In addition, this chapter focuses on a special dimension: how
affective bonds allow the manager to identify and foster team talent. Managing employees’ imagination and emotions is key to generating cohesion and internal social satisfaction.
Launching a company internationally may not be good for the heart: continuous uncertainty, making decisions based on little data, and the challenge of pursuing an objective that often not only
seems not to be getting closer, but may even seem to be getting further away. This is a task that
may seem suitable only for superheroes, a scenario in which it is very easy to lose perspective
and devote all of one’s effort to work, work and more work. Every manager has a list of tasks that
would take weeks to finish, even if he/she works 24 hours a day, and that seems to grow longer
even as each task is crossed out. This can lead to the person feeling overwhelmed. Dealing with
this feeling of stress is the topic of Chapter 3. The authors discuss the factors that can increase
work and personal stress when the business is launched internationally and, above all, how to
remain motivated and what attitude to develop to reach the objectives and face and overcome this
pressure.


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Linked to this chapter is the issue of technology and the development of the Internet towards
greater connectivity and phenomenon 3.0, factors which, while greatly favoring the process of internationalization, can increase stress (techno-stress). Another of the consequences that has been
produced by the phenomenon of globalization has been the evolutionary transformation of hierarchical pyramid organizations into structures which are increasingly flat and networked. This has
turned decision making into a complex process in which more and more people are involved, or
which the capacity for influence no longer lies in formal power, but in the knowledge of and access
to information provided by networks. In this chapter, the author highlights the number of daily decisions that you will have to face when you are working in an international business: where in the

world to establish yourself, how to coordinate and control activities when faced with government
restrictions that limit your objectives, and, above all, how cultural differences—power distance,
individualism, masculinity and avoidance of uncertainty— will influence the decision making
process.

Being able to develop the company internationally requires that all agents of interest who have or
could have any relationship with the company move in the same direction. Therefore, there is a set of
interpersonal or collective competences that the manager should also consider. The first that is vital,
and that could be considered across the organization, is oral communication. In this chapter, the authors
shed light on the importance of mastering this variable for challenging perceptions and closing international agreements. In addition, they point out the key factors in effective oral communication, a vital
mechanism of transmission that allows the manager to communicate the decision to internationalize the
company to all the departments of the corporation, but, most crucially, to their work teams (Chapter
6). Effective oral communication is key to being able to build the best team (surely one of the most
complicated challenges).
•

•

Another issue that should not be overlooked by managers is that globalization, migrations, the
incorporation of women into the world of work, and the recognition of minority rights, among
other developments, have given rise to increasingly heterogeneous societies and organizations.
Thus, as a manager, you will have to work with teams made up of people with different cultural
backgrounds, religions, sexual orientations, training, etc. You must assume that diversity is a reality that is here to stay and which should be welcomed. How are you going to manage members of
a team that, surely, no longer share most of their characteristics? How will you deal with external
stakeholders in Africa, Asia, Ireland or Germany? In this chapter, the author shows that success in
dealing with clients, suppliers or employees requires the ability to take into account their personal,
cultural and social characteristics. Diversity management is associated with dynamism and the
capacity to respond to the uncertain competitive context in which organizations operate through
the formation of heterogeneous but well-managed teams that are more efficient and creative than
those which are more homogeneous. Therefore, this chapter will show you that an attitude oriented towards the creation of an inclusive and supportive environment for different profiles of

people leads to a more effective business process, which is in turn reflected in greater profits for
the organization.
In addition, Chapter 7 will immerse you in the wonderful world of meetings, a key mechanism for
communicating business culture. Many studies have offered guidelines for successful meetings;
however, it is very common to hear meetings described as a waste of time. Most of us, at one
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•

time or another, will have had the thought, “Another meeting?” The author of this chapter seeks
to rescue the meeting as a key tool which can be used to keep the objectives of all agents of interest aligned with those of the organization; a key instrument for promoting bonding and a sense
of unity between the various parts of the organization. All this is seasoned with some important
tips and that should be of use to managers who have a meeting abroad, or who have to organize a
meeting with people of different cultures.
Something similar happens with projects, another professional area that generates great uncertainty in the managers in charge of taking these initiatives forward, and that we must know how
to develop. When you direct your first project, you will experience a strange feeling of pride and
vertigo: all that responsibility, all the focus turned towards you. Through this chapter, you will get
answers to all those questions that arise when you are faced with the challenge of managing an international project. The author prepares you to present offers, negotiate, coordinate contracts and
manage projects in the methodical and rigorous manner necessary to achieve success. Directing
a project is more than delivering a product or service in a satisfactory way. In addition, you will
develop your analysis and assessment skills.
However, there is another issue that cannot be forgotten: the importance of transmitting the organizational culture, and the values that define it. For this reason, when managing Human Resources
on an international level, the first question you will ask is: Who do I send out now? The possible
destinations are diverse, and the legal, social and economic circumstances of each country are
very different. You have to develop a leadership style which helps to create a culture of compliance. With this in mind, this chapter identifies problems and solutions related to issues such as

expatriation, considering not only the possible effects on the business, but also the possible consequences for the worker’s emotions and wellbeing. You must transform international mobility into
a strategic Human Resources tool for the attraction, development and retention of talent, which
responds to your organizational.

Thinking strategically is the focus of the third section of this book. A manager does not normally
operate in the “now”, but occupies an intersection between reality and dream, which is known as vision.
The key is to communicate this vision and to encourage others to share it. It is about making employees,
future partners, investors, and customers fall in love, and making sure they understand the vision by
ensuring it is as clear as it is inspiring.
•

•

xx

As far as international business is concerned, the first key factor to understand is the internationalization strategies. Many managers confuse these. That is a big mistake. Have you reflected on
your internationalization strategy? Correct decisions cannot be made if the strategic objectives
are not clearly established. Any entrepreneur wishing to do international business must first and
foremost be a strategist, capable of designing global strategies adapted to each market. This is the
focus of Chapter 10, which introduces management professionals to the main internationalization
strategies, but, most importantly, takes as a fundamental axis the different stakeholders that are
involved in the process. Shareholders, employees, customers, distributors, suppliers: these key
stakeholders cannot be ignored.
Among this group of stakeholders is society, which, today, increasingly insists that companies
take responsibility for the consequences of their actions. The manager must start from the working
hypothesis that the internationalized company affects the stakeholders in those countries in which


Preface

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•

•

•

it operates. Consequently, the authors of Chapter 11 highlight the importance of establishing clear
CSR policies, codes of conduct, sustainability reports and, in some cases, a solid framework of
CSR certifications. They also show how CSR can affect not only organizational development, but
also the social, political and economic development of the country in which the firm is located.
Linked to the above, for a company to be competitive and effective, the manager must have clear
negotiation strategies (with other managers, unions, suppliers, customers, etc.). This skill that will
allow managers to avoid wasting opportunities and resources and, often, will help prevent wear
and tear in interpersonal relationships. Chapter 12 focuses on one of the stakeholders with whom
the manager must negotiate, the unions. How to prepare for union negotiations? The key is to take
into account the culture of each country. Issues of work absenteeism, flexibility, remuneration uniformity, etc. vary depending on the parties that negotiate and where they negotiate. Understanding
and managing these negotiations to harmonize the interests of workers with the corporation is the
main purpose of this chapter.
Going into the unknown always carries risks, but we will never reach new destinations by following the safe paths we already know. Awakening the curiosity, courage and imagination of our
employees is vital, hence the inclusion of a chapter on innovation and creativity. Here, the author
shows how an organization that wants to make innovation its banner must transform a culture of
fear into a culture based on trust and continuous change.
Networking is another key element for business success, whether nationally or internationally. By
nature, human beings need others to survive. If, from the beginning of time, the ability to relate
to others and build networks has been one of the most important characteristics of our species,
today, in the 21st century, it has become one of the key competences necessary to obtain results
in business and, to a large extent, internationally. Imagine being able to solve the problems in the
company just by making a call! Creating alliances in the business environment is a great advantage when it comes to expanding the scope of a business, but just as important as creating the

connections is maintaining them. We all have old friends that we have not seen for a long time.
With some we know that everything is the same as before when we meet again or, we talked on
the phone. With others, however, the time barrier is insurmountable. Why does that happen? Can
the same thing happen with people with whom we relate professionally? The author of this chapter
offers an interesting discussion of the culture of networks, and some very useful examples, which
help us understand the importance of taking a position on this issue. In addition, it provides us
with a methodology to create, develop and maintain a network of useful contacts.
Finally, we have a chapter that summarizes all the strategic skills that a manager at the international level should have. The authors outline a global vision, clarifying the key points which should be
taken away from this section, and offering a range of useful examples.

In accordance with the previous objectives, we have chosen to introduce a chapter on the future of
these competences in our work. How will management skills be developed in the future? Where can
these competences be acquired? How does a manager learn how to develop internationally? The author
of Chapter 16 shows us that universities have come to play a crucial role in this area. Current companies
need leaders. It is not enough to have knowledge of management and business management, but it is also
necessary to be trained in the relevant skills, competencies, values, beliefs and emotions. Postgraduate
courses can become an instrument for this.

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Preface

The authors are undoubtedly passionate about people, and with this book they intend to transmit
their passion for developing current and future managers. Are you ready to start or expand your business internationally? We hope that, for all of those who are currently working in this field, or who are
preparing to assume the responsibility of management at the international level, our book will be both
interesting and useful.
We intend to support entrepreneurs and professionals who are starting out in international business,
who wish to update their knowledge, or who wish to prepare for a future in international business. We
have aimed to keep the language simple and straightforward, so that the information and ideas within

the book can be easily captured and the objective for which it was created can be achieved.
We invite you to read it and enjoy.

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Section 1

Introduction


1

Chapter 1

Introduction to the International
Managerial Competences
Rosalia Diaz-Carrion
University of Cadiz, Spain
Macarena López-Fernández
University of Cadiz, Spain
Pedro M. Romero-Fernandez
University of Cadiz, Spain

ABSTRACT
Considering that markets today are characterized by high levels of competition and dynamism, the
managerial function is becoming increasingly complex. Managers need to develop a series of skills to
be able to respond to these changes in the environment. These competences must cover a broad spectrum: (1) at the strategic level, analyzing opportunities, threats, and the strengths and weaknesses of
the organization in order to ensure its survival; (2) at the group or collective level, managing people
who work inside and outside the company, and (3) individually, the manager must be in control of him/

herself before being able to manage those in his/her charge. Thus, proactivity, creativity, team management, and stress or time management are just some of those skills that managers should not ignore. This
chapter focuses on analyzing the competences that managers must develop in order to be successful in
both domestic and international markets.

INTRODUCTION
The context in which organizations carry out their activity has been transformed profoundly and at an
accelerated pace. Changes such as economic integration, the transnationalization of products and brands
or the new international division of labor have driven organizational trends (e.g. technological advances,
new structures of organization, labor and professional certifications, etc.) where the traditional way of
operating in business is no longer effective.
DOI: 10.4018/978-1-5225-5781-4.ch001

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