Decision-maker's overconfidence and international performance: the role of the adoption of intuitive practices

Purpose The paper analyses the influence of the decision-makers' overconfidence on the intuitive practices' adoption, as well as on the international performance during international strategic decision-making processes (SDMPs) of small- and medium-sized enterprises (SMEs). Moreover, the study investigates the possible mediating effect of intuition on the relationship between overconfidence and international performance. Design/methodology/approach A semi-structured questionnaire based on a sample of 160 SMEs and a regression analysis have been employed. Findings Results show a negative relationship between intuition and international performance and a positive one between overconfidence and international performance. Furthermore, a negative relation between overconfidence and intuition has been identified. Findings also highlight the mediating role of intuition in the relationship between overconfidence and international performance. Practical implications The paper provides valuable implications related to the analysis of overconfidence as a critical decision-maker's character and intuition as a feature of the decision-making methodology. Moreover, the study offers indications for SMEs facing complex strategic decisions. Originality/value The paper adopts an original perspective by combining the SDMP analysis with that of international strategy within the SMEs context. Additionally, the study enriches the existing literature by (1) investigating overconfidence in the decision-making; (2) enhancing the examination of overconfidence and intuitive practices in the international SDMP; (3) deepening the research field focused on the identification of the intuitive processes' predictors that is still in its infancy.