Dynamic Managerial Capabilities and International New Venture Performance: A Multilevel Study of Cultural Perspective

International new ventures (INVs) face unique challenges in navigating cultural differences to achieve success in global markets, yet the role of cultural factors in enhancing dynamic managerial capabilities (DMC) and firm performance remains underexplored. This study investigates how cultural intelligence (CQ) and intercultural competence influence the relationship between DMC and INV performance. Using a sample of 124 INVs and 932 employees, we applied multilevel structural equation modelling to test a mediation-moderation model. The findings reveal a positive relationship between DMC and INV performance, mediated by CQ, with intercultural competence moderating this relationship - showing stronger effects when intercultural competence is high. Notably, managerial human capital within DMC significantly drives these dynamics. These results deepen our understanding of how cultural factors integrate with managerial capabilities to boost INV performance, providing actionable insights for managers aiming to enhance international outcomes.