Abstract
The purpose of this study is to examine the microfoundations and emergence of firm-level cultural intelligence (CQ). Using dynamic capabilities theory, we conceptually develop a framework that proposes a positive relationship between firm-level CQ and innovative performance, moderated by a firm's country of origin. We further conduct an exploratory empirical analysis based on a lagged, cross-sectional design using multisource data, including primary survey data from 353 global managers from large Brazilian and foreign developed market MNEs operating in Brazil representing a variety of industries as well as archival data on innovative performance to include objective firm performance data. The results generally support our hypotheses. Specifically, the impact of firm-level CQ on innovative performance was supported for both the innovation input and the downstream innovation outcome of sales growth. The moderating effect of country of origin on innovation performance was partially supported.